Rent increases at South Portland apartment complex prompt call for temporary eviction moratorium

May 19—SOUTH PORTLAND — Community organizations and lawmakers are asking the city to put a temporary eviction moratorium in place for large property owners after the new out-out-state owner of Redbank Village, an affordable apartment complex, has let its tenants know that their rents could increase by hundreds of dollars per month.

In a letter submitted to the South Portland City Council Tuesday, the organizations and lawmakers asked for a six-month eviction moratorium, retroactive to April 1, for all owners of more than 200 rental units in the city except housing authorities and nonprofits bound by federal and state regulations.

"We're recognizing that if we don't act quickly, people could either be evicted or feel very housing insecure, even more so than they are now, very shortly," said Rep. Victoria Morales, a South Portland Democrat who also serves as executive director of the Quality Housing Coalition, which works to ensure affordable, accessible housing for people in need.

Morales was one of 11 lawmakers from South Portland and Portland who signed the letter, along with representatives of 16 community organizations. The nonprofits and social justice groups include the Maine Immigrants' Rights Coalition, Preble Street and Community Housing of Maine.

"That urgent action was needed to allow the council to figure out a strategy and use their power of local control to kind of put a pause on things so families, students, seniors don't feel so stressed about what may be happening," Morales said. "It's not a full solution, but it's a temporary solution to allow for fact finding and to figure out what is the best policy right now for South Portland."

South Portland officials said they are considering the request and are also planning a workshop on rent stabilization in response to the rent increases at Redbank Village Apartments. The 500-unit community of townhomes and apartments located on the west side of the city off Westbrook Street was sold to JRK Property Holdings of Los Angeles in November.

Some tenants said last week that they have since been notified of monthly rent increases ranging from $200 to $600, depending on whether they sign new year-long leases and how quickly they do so.

"What we have to find out is what we can do legally," said South Portland City Councilor Susan Henderson. "I can't give you specifics (on our next steps) but what I want to say is I think that what has happened by this company is an outrageous violation of human rights and human dignity."

The council is planning to hold a workshop June 14 to discuss the possibility of some form of rent stabilization. The city's legal counsel will be on vacation from the end of this month until the beginning of June, which is the reason for the June 14 date, said City Manager Scott Morelli.

"She is vital to any discussion as there are things that municipalities can and cannot do, and so we don't want to give anyone false hope or expectations if what they want us to do is illegal, and if Council does pursue some action, we want to make sure it is defensible," Morelli said in an email.

Councilor Jocelyn Leighton, who requested the workshop at this week's council meeting, said Thursday that details of how rent stabilization could be implemented are being worked out and will depend in part on what the city is legally allowed to do. Leighton said the council is also looking into the request for the temporary eviction moratorium.

"I'm hoping we can speak with Rep. Morales and (Rep. Chris Kessler) and see what we can do," Leighton said. "We need to move that workshop from June 14 up and I will be asking to do that. If we can do this moratorium or a rent freeze or whatever we can do to give more time to renters to stall the rent increases, I'm definitely in support of and working towards."

The letter to the council says a $400 rent increase at Redbank Village prompted the request for the temporary eviction moratorium but it also notes that South Portland is facing a "housing crisis unparalleled in its history."

Morales said some Redbank Village renters have reported rent increases of $400 to the organizations that signed on to the letter, but she said increases at the complex may vary. The letter states that 48 households in Redbank Village use federal housing vouchers and "will face significant challenges paying their share of the rent increase."

It's unclear what the exact range of possible rent increases is, how many tenants have received notice of rent increases and what rents are right now at the apartment complex. A person who answered the phone at Redbank Village on Thursday referred questions to JRK's office in Los Angeles, where a phone message and email seeking this information were not immediately returned.

The city last week asked JRK to submit a summary of all the rent increases it has issued to tenants this year — and to include current and new rent amounts — by Friday, but to date has not received the information, Morelli said. Under city ordinance, landlords are required to give tenants written notice 75 days prior to a rent increase, and the city has the authority to request such notices for inspection.

Apartment listings on the Redbank Village website Thursday included a $2,100 two-bedroom, a $2,479 three-bedroom and a $2,529 three-bedroom. One tenant told the Press Herald last week that she recently renewed the lease on her three-bedroom apartment for one year, agreeing to pay $2,001 per month, which is a $398 increase and does not include utilities. If she had waited until April 30 to renew, she said, the increase would have gone up to $598.

Another tenant with three children said the rent on his three-bedroom apartment was expected to increase from $1,500 to $1,890, and that he was considering moving out of Maine.

Morales said the proposal for the temporary eviction moratorium is aimed at Redbank, though other large property owners could be impacted if they submitted rent increases after April 1. "But the idea is it's temporary and it will allow the council time to figure out the right policy," she said. "It's not something intended to be put in place long term."

Several people at Tuesday's council meeting expressed concerns about the situation at Redbank and urged the council to act.

School board Chair Elyse Tipton, who said she was not speaking in an official capacity on behalf of the schools, told the council that the rent increases at Redbank Village are impacting many children. Tipton said one school principal told her that her staff are hearing students talk about the possibility of having to move and leave their friends and their school.

"What she said is she's certain they're hearing this from the adults in their homes and they're experiencing with the adults the stress this is putting on families," Tipton said. "I just thought, 'My God, is that what we want to do to our young students? Put more stress on them this year?' I don't think so."

Tipton said the situation is a crisis.

"Whatever you can do as quickly as you can do it, I ask you to please do so," she said to the council.

One woman who identified herself using only her first name, Kayla, told the council she is a single mother of three children who works full-time and pays $1,529 per month. When she got home from work last Thursday, Kayla said, there was a notice on her door saying that if she didn't sign a new lease by Sunday, her rent would go up to $2,143.

"I just can't afford that," Kayla said. "And I don't know who else will rent to a single mother in a competitive environment like this. We'll have to leave South Portland and I really like it here."

This story will be updated.