Question 3 on the 2024 Rhode Island ballot asks voters to approve a $120 million housing bond, which is the largest proposed housing bond in Rhode Island history.
The bond is split into six sections: $80 million for affordable housing, $10 million for acquisition and revitalization, $20 million for homeownership, $5 million for site acquisition, $4 million for housing related infrastructure and $1 million for municipal planning. The specific allocations are outlined in the house bill text under “Housing and Community Opportunity” in Article 5.
A bond is a loan that a government issues to raise money for a specific issue or crisis. When a bond is purchased, the buyer, in this case Rhode Island citizens, lends money to the issuer, who agrees to pay back the loan’s face value by a specific date with interest rates included.
Melina Lodge, the executive director of Rhode Island Housing Network, has pushed for the approval of the bond. She noted that she hasn’t seen much opposition so far.
“I think most people can understand, at this point, that we are in some sort of housing crisis,” Lodge said. “More voters than ever are feeling that impact personally.”
If the bond passes, projects will likely begin building processes in the spring, according to Lodge, and be spent over a two-to-four-year period. She noted that housing is something that has to be constantly invested in. The last housing bond was $65 million, which was passed in a 2021 special election. Since 2010, Rhode Island voters have approved all four proposed bond issues related to housing.
Regarding impacts on finances and business, representatives from Durkin Cottage Realty and Narragansett Properties said that bonds have effects on tax benefits, property values, the relationship between interest rates and the bond price, financing as a whole and the fostering of stability in the community.
Abbey Dyer, the partner and director of operations at Narragansett Properties, helped to interpret how this housing bond will affect local housing businesses.
“Housing bonds go hand-in-hand with interest rates,” Dyer said. “When a bond price is higher, interest rates decrease. When bond prices go down, interest rates increase.”
Mortgage rates may increase slightly to match the dropping rates, which would help out with property collateral, according to Dyer.
In some cases, the state bond could work in tandem with town-scale bonds. For example, Narragansett is putting a $3 million housing bond to voters on their ballot, which would be aimed towards local issues.
“I don’t know how long it will take for the market to change and really have a positive impact, but I’m happy about the bond because I think all those things are happening together to help us with housing,” said Susan Cicilline-Buonanno, a Narragansett Town Council member.
She addressed the shortage of housing for University of Rhode Island students, saying that the Town Council is working together with the university to serve the student population. Cicilline-Buonanno has served on the South County Housing Coalition, a group that provides communication between the two.
“We can’t restrict childhood,” she said. “We need to make sure there’s more of it, and we need to have more opportunities for students and young people, people in the workforce to have opportunities to live and enjoy.”
The $120 million bond measure was approved by the Rhode Island State Senate and House of Representatives in June, as part of the state’s fiscal year 2025 budget.
This article was produced in conjunction with the University of Rhode Island’s public affairs reporting class under the journalism and public relations department.