Elorza and Aponte Announce Tax Break Plan for Providence Neighborhoods

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Elorza and Aponte Announce Tax Break Plan for Providence Neighborhoods

Mayor Jorge Elorza
Providence Mayor Jorge Elorza and Council President Luis Aponte announced Thursday a Tax Stabilization Act (TSA) intended to provide developers transparency and predictability in an effort to bring development to nineteen low-to-moderate income neighborhoods. This is the third different TSA program proposed by the Elorza administration and the City Council.

“Since the beginning of the foreclosure crisis and the Great Recession of 2008, Providence’s neighborhoods have been reeling. We have seen properties sit vacant or abandoned for months and years at a time, deteriorating our housing stock and causing further drops in property values. The Providence Neighborhood Revitalization Act gives the city a new tool to combat these trends, bring new investment to our communities, and create economic opportunity for residents,” said Council President Aponte.

The nineteen neighborhoods eligible for the new TSA program are: Charles, Elmwood, Federal Hill, Fox Point, Hartford, Lower South Providence, Manton, Mount Hope, Mount Pleasant, Olneyville, Silver Lake, Reservoir, Smith Hill, South Elmwood, Upper South Providence, Valley, Wanskuck, Washington Park and the West End.

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Previously, a TSA program was announced for the 195 land and a different structure for the rest of the downtown area -- this is the third proposed structure.

Structure of the Neighborhood Program

The program will phase in taxes over the course of six years, starting with no tax increase in the first year and 20% increases for each of the five years to follow.

For a developer to apply for the program, the project must be worth between $250,000 and $3 million. However, adult entertainment venues and nightclubs are not eligible for the program.

Projects do not need to be approved by the administration or City Council as the Neighborhood TSA is an administrative program.

Developers will be required to make a “good faith effort” to include participation from businesses owned by women and minorities and to employ Providence residents.

First passage of the Providence Neighborhood Revitalization Act by the City Council is scheduled for Thursday night.

“As Mayor, I have made it a top priority of my administration to eliminate the blight of vacant, abandoned properties in Providence. Working together, we will transform Providence block by block by turning abandoned properties into new affordable homes, putting minority and women owned businesses to work, and taking back our neighborhoods,” said Mayor Elorza.


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