Providence committee advances ordinance to ban algorithmic rent‑setting software

The Providence City Special Committee on Health Opportunity for Expanding and Education (HOPE) voted on April 23 to advance an ordinance that would prohibit the use of algorithmic rent‑setting devices — such as RealPage’s YieldStar — for residential dwelling units in Providence. The motion to pass the ordinance as amended was made by Councilwoman Cindy Peterson and seconded by Councilor Miguel Sanchez; the committee voted to advance the measure.

Committee sponsors and city staff said the ordinance seeks to close a perceived “loophole” whereby property managers share rent and occupancy data with third‑party pricing algorithms that, the presenters said, can recommend rent levels across a market. "Rent‑setting software algorithms ... exist for one singular reason: to boost profits by artificially increasing rents," said Jim Rose, chief of staff for the City Council, during the presentation. City staff described the proposal as adding language to Chapter 13 of the Providence municipal code to prohibit use of algorithmic devices that set…