Two years after Rhode Island voters approved the largest housing bond in state history, they'll be asked to do it again.
Question 2 on the Nov. 3 ballot would authorize the state to issue $120 million in general obligation bonds for housing. The ballot language says the money would "increase and preserve the availability of affordable and accessible housing to meet the needs of all Rhode Islanders and support community revitalization through the redevelopment of existing structures, new construction, property acquisition, and infrastructure improvements," according to the Secretary of State's voter handbook.
What the bond would pay for
Of the $120 million, at least $25 million would have to go toward increasing production of housing intended for homeownership. Up to $10 million could support a program for public housing development.
If voters approve the measure, housing production and redevelopment projects are expected to begin by 2028 and be completed between 2029 and 2032, according to the handbook. The state estimates the useful life of the new or redeveloped housing at a minimum of 30 years.
Borrowing isn't free. The handbook puts the total cost at $192,586,000, including $72,586,000 in interest, assuming a 5% rate with level payments over 20 years. Cost of issuance is estimated at 0.4% of the principal.
Rhode Island voters approved a $120 million housing bond in 2024 with 65% of the vote. Rhode Island Current's voter guide notes the new question comes as high construction costs and a lack of affordable housing continue to make it difficult for many Rhode Islanders to find housing.
The debate over results
Not everyone is convinced the last bond delivered enough. The Rhode Island Public Expenditure Council, a nonpartisan research group, found that as of April, $52.2 million from the 2024 bond had financed 200 new rental units, at an average development cost of more than $512,000 per unit, Rhode Island Current reported.
State housing officials have disputed that assessment. They point to nearly 3,800 housing permits issued statewide over the past year and argue the report didn't account for the added costs and challenges of subsidized projects, including rehabilitating long-vacant buildings and other infrastructure improvements, according to the voter guide.
Jeffrey S. Hamill, a senior policy analyst for RIPEC, told Stateline the group doesn't take formal positions on ballot questions but thinks the state's recent housing spending has produced too few homes at too high a cost. The council has floated pairing more borrowing with changes such as per-unit cost limits and a more consolidated funding system.
Supporters say the bond fills a gap the market won't. "What a bond can offer is that it provides the resources that are needed to build housing units specifically targeted at lower-income price points because the cost of housing development is high right now," said Melina Lodge, executive director of Housing Network of Rhode Island, in the Stateline story.
Rhode Island isn't alone. Voters in California, Hawaii, Massachusetts and Rhode Island will decide six housing-related measures in November, the most in a single election year in at least two decades, according to Ballotpedia, as cited by Stateline.
Polls are open 7 a.m. to 8 p.m. on Nov. 3, except in New Shoreham, which opens at 9 a.m.
Why it matters for Contractors
State housing bonds turn into construction work. Money from the 2024 bond has already helped fund projects across the state, and a second $120 million would add to the pipeline of subsidized rental and ownership projects that hire contractors, subcontractors and suppliers.
The $25 million floor for homeownership production stands out. The 200 units RIPEC counted from the 2024 bond were all rentals, so a dedicated pot for for-sale homes could matter to builders who work on starter homes, townhouses and condos for income-qualified buyers.
The handbook's language also covers the redevelopment of existing structures and infrastructure improvements, the kind of work that includes rehabbing older buildings and the site and utility work that comes with them.
The timeline is long. Projects funded by the bond are expected to start by 2028 and finish between 2029 and 2032, so contractors shouldn't expect an immediate surge. And the RIPEC debate is a reminder that per-unit costs are under scrutiny. Contractors bidding on subsidized work are operating in a climate where the cost of every unit is being watched closely.