Council narrows tax-sale changes: removes online sale phase for now and limits purchases to 10 properties per owner

The Providence City Council approved a substitution to a proposed tax-sale ordinance that removes an immediate shift back to exclusively in-person tax sales and retains a provision limiting any single individual or LLC from acquiring more than 10 properties at a tax sale.

Adam, a member of the policy team, said the substitution was made to allow time for the tax collector to weigh in and because the tax-sales process is imminent. “The substitution removes the online tax sale portion and keeps the piece around making sure that an individual or an individual corporation can't own more than 10 properties from a tax sale,” Adam told councilors.

Councilors raised concerns about enforcement against actors using multiple LLCs or shell companies to evade ownership caps. Sponsors acknowledged the difficulty: one councilor said it is “tough” to prevent shell companies from allowing the same person to acquire properties under different names, and staff said additional legal language and research would be needed to pursue that enforcement pathway.

Members also discussed notification procedures for owners at risk of tax sale, highlighting state requirements. A councilor and staff cited Rhode Island law: first-class mail and publication procedures are required and, as noted in the debate, the tax collector must send a certified second notice not fewer than 40 days before the sale. Councilors asked staff to check the tax collector’s current procedures and to explore additional measures (exemptions or outreach for elderly, incapacitated or hospitalized owners) during budget and administrative work.

Councilors approved the substitution and retained the 10-property limit while directing staff to meet with the tax collector and return with technical recommendations and enforcement language to address multi-LLC acquisition and notification gaps.