City of East Providence adopts new accessory dwelling unit tax stabilization ordinance - by Roberto DaSilva

As residents of East Providence struggle with high housing costs, the city has been working to encourage the development of alternative housing opportunities. With this goal in mind, the East Providence City Council passed an accessory dwelling unit (ADU) tax stabilization ordinance on July 7, 2026.

The ordinance provides property owners with a five-year period of property tax relief on the additional value an ADU would add to their home’s assessment. The relief begins with a 100% exemption in the first year and decreases by 20% each year thereafter.

ADUs are rental units that are accessory to existing dwelling units and may be located entirely within an existing home, attached to an existing home, or within a separate structure, such as a detached garage or cottage. Compared with other forms of housing, ADUs generally have less impact on existing neighborhoods, natural resources and neighborhood character.

ADUs offer benefits to many types of residents. These units can be an excellent option for young adults entering the workforce. Across the U.S., rising housing costs are forcing many young professionals to remain in their family homes longer. In fact, many older adults began their independence by renting an accessory unit from family members or other property owners.

For many older adults, ADUs provide an opportunity to downsize without leaving the communities they have called home for decades. AARP strongly supports ADUs as a way for older homeowners to utilize extra space in their homes for rental income. Seniors may even choose to move into the smaller space and rent the larger home to a tenant or family member.

East Providence continues to lead the way in promoting housing affordability through ADUs. The city recently passed an ordinance allowing detached ADUs on lots with a minimum of 5,000 s/f, rather than the state’s baseline requirement of 20,000 s/f.

The current housing crisis is burdening residents of all ages and negatively impacting the region’s economy. In East Providence, 50% of renters are considered “cost burdened,” while Rhode Island ranks last in housing construction per capita.

Solving the housing crisis is a nationwide goal, and making ADUs more affordable to construct is one tool that can help East Providence residents address its impacts.

Roberto DaSilva is the mayor of the city of East Providence, R.I.