Rhode Island Housing Package Targets Zoning, Parking And Sros

Rhode Island, like other states nationwide, is grappling with a housing affordability crisis.​

State lawmakers are now on their sixth legislative package to strengthen efforts to improve housing affordability. This time, the package includes reviving boarding houses and co-living.

Like California, Florida, and Texas, the nation’s smallest state has faced a housing shortage even as new homes are being built.

To shorten construction timelines, those states have passed laws that supersede local governments, cut red tape, and change zoning to make it easier for builders to develop ground-up homes.

Rhode Island House Speaker Joseph Shekarchi has shepherded five previous packages as the state has sought to address housing affordability challenges.

“Our advocacy is working,” Shekarchi said in a news conference last week in Providence. “Rhode Island is becoming a model for housing policy in other states. We’ve passed more than 60 new housing laws that are having real results.”​

He cited a 70% increase in building permits in 2023, the largest since the Great Recession. He also noted that construction takes time.

“We are still trying to play catch-up for all the years that Rhode Island was dead last in the country for new housing starts,” he added.​

Rhode Island’s housing woes

Rhode Island’s chronic underbuilding created a severe housing shortage and pushed vacancy rates and inventory to historic lows. Prices and rents climbed as too many people competed for too few homes. Families now face intense competition for every halfway decent listing.

The median single-family home price is around $500,000, far beyond what most local incomes can support. Many longtime residents cannot compete with higher-earning or cash buyers. Homeownership feels increasingly out of reach for typical Rhode Islanders.

Renters face similar pressure, as average two-bedroom apartments require incomes near $60,000. Typical renter incomes hover around $48,000. Many households pay well above 30% of their income just to stay housed.

Speeding up housing affordability options

State Rep. June Speakman, chair of the House Commission on Housing Affordability, introduced legislation late Friday to re-legalize single-room occupancy and co-living housing.

The legislation is modeled on a template that the Institute for Justice began urging states to introduce in December. Speakman’s bill marks the first for the nonprofit public-interest law firm’s “Restoring Options in Occupancy Models Act.”

“We will make better use of vacant spaces and buildings,” Speakman said.​

Her legislation, titled the ROOM Act, defines co-living properties, sleeping units and co-living occupancy agreements. It would require municipalities to allow co-living by right in single-family, multifamily, commercial and mixed-use zones where residential use is permitted.

The bill would bar discretionary reviews and limit local rules governing density counts, bulk and design standards, parking – especially near transit – and occupancy limits based on personal characteristics.

The legislation would preempt conflicting local zoning and certain code requirements while preserving landlord-tenant protections. It sets a Jan. 1, 2027, deadline for local compliance and allows lawsuits, with the city paying attorneys’ fees if it loses.

A full slate of bills addressing housing affordability

Rhode Island lawmakers have a full slate of bills aimed at unlocking more housing in existing communities. They address how lots can be split, how much parking cities can require, how small apartment buildings can be designed, and how governments can reuse vacant land and buildings.

One bill would allow property owners in areas with water and sewer capacity to create new house lots under defined rules, opening more sites for single-family homes. Another would cap the amount of parking cities can require for multifamily projects near transit, supporting more homes rather than more asphalt.

A separate proposal would amend the building code to allow developers to use a single staircase in residential buildings up to four stories and 16 units, while still meeting all fire safety standards. Lawmakers are also advancing a measure to allow state-owned vacant buildings to become housing by right, making it easier for cities and towns to convert empty municipal buildings, including schools, into new homes.

The legislation mirrors what other states are doing regarding parking requirements near transit. Illinois, for example, took a similar step last year, joining states such as California and Colorado.

Shifting regulations on single-stair construction for small apartment buildings align with a growing national trend.

Can this approach succeed?

The state’s debate over how to address housing affordability comes as council members in the capital city consider capping apartment rent increases at 4% a year. Rhode Island’s package would give the state more tools to loosen zoning, cut process delays, and revive lower-cost housing types, such as SROs and co-living. The jury is still out on how well other states’ laws are working.

In many cases, local governments have their own processes for complying with new state housing laws. They have also resisted changes that curb local control. Rhode Island is not immune to local resistance, although, for now, it appears lighter than in many other states.