Mr. Regan outlines Newport's workforce housing project and market rate concerns

The Newport City Council held a regular meeting on December 11, 2024, where significant discussions centered around workforce housing and a proposed development project. The meeting began with a detailed examination of the definition and implications of workforce housing, as presented by Mr. Regan. He clarified that workforce housing is intended for individuals who earn too much to qualify for affordable housing but not enough to afford market-rate apartments.

A key point of contention arose regarding the language in the deed for the Calvert property, which stipulates that the premises will provide one- and two-bedroom apartments at market rates. Council members expressed concerns about how this aligns with the intended purpose of workforce housing, which is typically defined as housing for those earning between 80% to 120% of the area median income (AMI). Mr. Regan defended the proposal, stating that the project aims to serve the middle-income demographic, despite the lack of a cap on rental prices.

The council also discussed the financial aspects of the project, including the $1 million the city would receive from the sale of the property. Mr. Regan noted that the costs associated with preserving and rehabilitating the existing building have increased, making the total project cost approximately $13 million. He emphasized that the developer would be responsible for all costs related to the property, including maintenance and infrastructure improvements.

Further debate ensued regarding the potential for higher rental prices and the implications for the project's classification as workforce housing. Council members questioned the necessity of allowing market rates in the contract, suggesting that a clause could be added to adjust rental prices based on future definitions of workforce housing. Mr. Regan argued that the high costs of the project necessitate flexibility in rental pricing to ensure the developer's viability.

As the discussion progressed, it became clear that there was a divide among council members regarding the project's alignment with the city's stated need for workforce housing. Some members expressed skepticism, suggesting that the proposal may not fulfill the intended purpose of providing affordable options for the community.

The meeting concluded with a recognition of the complexities involved in balancing the financial realities of development with the city's housing needs. The council plans to continue deliberating on the proposal, with further discussions anticipated in future meetings.