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Council advances tax‑stabilization for ADUs, passes ordinance 4–1 on first passage
Summary
The East Providence City Council voted 4–1 on June 16 to approve an ordinance to allow a five‑year phased tax stabilization on the assessed value added by accessory dwelling units (ADUs), with an amendment that prevents the stabilization from transferring to a new owner.
Council Vice President Rego introduced an ordinance on June 16 to amend Chapter 16 of the city code to allow tax stabilization for accessory dwelling units (ADUs). The change permits homeowners who build or convert space into an ADU to apply to the assessor for a five‑year, phased reduction on the additional assessment attributable to the ADU: the stabilization phases down over five years until the new value is fully taxed.
The council adopted an amendment clarifying that the stabilization benefit applies only to the qualifying owner and does not transfer to a subsequent buyer; the ADU’s assessed increase would be taxed at full value upon sale. The ordinance requires an application to the assessor within 90 days of a permit and an occupancy certificate before stabilization applies.
Proponents said the measure is intended as an incentive for residents to add housing supply and help older homeowners remain in place without an immediate tax spike. Rego described the policy as “a way of us townies taking care of townies,” characterizing it as targeted relief for homeowners who meet homestead requirements. Council members also emphasized that the measure does not alter ADU permitting rules or create a permanent tax exemption — it defers the additional assessment on the ADU portion for the five‑year schedule described in the ordinance.
During debate, councilors discussed how the phased percentages would be applied each year and confirmed that general property revaluations (conducted periodically by the city) could affect the base value of the primary dwelling but not the stabilization schedule for the ADU portion while the benefit is in effect. Council members noted an application and verification process through the assessor’s office.
The council passed first passage of the ordinance as amended, 4–1. The ordinance was introduced and discussed at a public meeting and will follow the city’s normal advertising and additional procedural steps before final adoption.
