South Portland OKs eviction moratorium, rent control as tenants face costly hikes
The South Portland City Council late Tuesday unanimously approved an emergency ordinance that bars housing evictions for six months and caps rent increases at 10%.
The vote followed news that Redbank Village, a local 500-apartment complex, and Los Angeles-based owner JRK Property Holdings planned to raise rents as much as $598 per month. Evictions of tenants were also slated to begin.
The council had weighed freezing rents completely, retroactive to April 1, but amended the ordinance to limit increases to 10%. The eviction moratorium would be retroactive to May 31 and continue through Nov. 27.
Before the council voted on Tuesday, Redbank Village management offered to create a cap of its own in an effort to avoid the city's mandates.
“Rather than institute those harmful policies, we propose instituting a self-imposed cap on renewal increases to no more than 10% of the average rents for the property. We will impose this cap immediately. This is in addition to the sizeable discounts we enacted last week for residents receiving housing assistance," Redbank Village said in a statement Tuesday before the meeting.
Redbank, which cited higher labor costs and inflation as reasons for the increases, also said it was planning a $6 million project to upgrade the property, including a clubhouse, fitness center and needed repairs to apartments.
Redbank managers declined to comment on Wednesday. JRK did not return calls seeking comment.
The South Portland City Council will consider a rent stabilization ordinance starting in a workshop on June 14.
South Portland's action follows a similar measure in Portland, passed by referendum in November 2020. That move, combined with the stricter development regulations, have been cast as anti-business and hurting housing development at a time of shortage throughout the state.
“This is temporary, but it sends a message to developers not to build in South Portland. The culture and hive mind is already thinking this way about rent control. My hope is that come November, the City Council and voters think about the long-term consequences. These quick and emotional fixes do not solve long-term issues. All they do is worsen the problem they’re intended to fix,” said John Finegan, associate broker with real estate firm the Boulos Co.
Others said the concerns were overblown.
“I have no fear that we’re going to see a halt in development because I know we can draft rules that will be fair to business and tenants and we can learn from experiences like other municipalities like Portland,” said state Rep. Chris Kessler, D-South Portland.
“What is driving people to South Portland and Maine is that the policies we’re putting in place are creating a great quality of life. We’re going to continue to see an influx of out-of-staters, asylum seekers and new Mainers."
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