SOUTH PORTLAND, Maine — After weeks of facing $400 to $600 rent increases by a new landlord at Redbank Village, hundreds of tenants gained some relief Tuesday as city counselors unanimously voted through an eviction moratorium and a rent increase cap of 10%.
At first, South Portland councilors wanted to not only institute the eviction moratorium, but a rent freeze. But after a last-minute plea from Redbank Village management, councilors agreed to allow the rent to increase by 10%.
City Manager Scott Morelli said during Tuesday's meeting the 10% rent increase, rather than a complete rent freeze, would avoid lawsuits and help Redbank deal with inflation costs it blamed for the increases in rent.
Until November 27, renters don't have to pay the full difference in rent they said they were coerced into signing back in April.
Councilors were presented with an updated draft of the moratorium Tuesday after last week's workshop where dozens of public commentators expressed concern that merely a six-month eviction moratorium would leave renters in the cold come November.
Maine State Representative Chris Kessler, who represents South Portland and Cape Elizabeth, said during last week's city council meeting that councilors need to address rent control if they impose an eviction moratorium.
"A moratorium on evictions for the short term, but rent stabilization for the long term," Kessler said.
"A short-term moratorium on evictions is not going to measurably impact what's going on at Redbank, they need to pass meaningful rent stabilization," Kessler added. "It's completely earth-shattering to families when they don't know where they're going to live."
Meantime at Redbank Village, tenants said they have been stressed for nearly two months over the issue.
"I've been looking at other apartments and stuff but I just signed a new lease so I have to consider breaking that and losing my security deposit," Eric Malonda, a Redbank renter said. "I was upset, kind of panicking. I have to figure out how I'm going to come up with these extra few hundred dollars."
When asked about the possibility of an eviction moratorium, Malonda said, "That would be big, not just for me but for everybody."
Delja Malanga, another Redbank resident, said her sister, who is a working mother, had to pick up a second job to cover the incoming rent.
"It's not just you have to pay for rent you have other bills and a car, you have insurance, you have medical care plus everything you get from work," Malanga said.
JRK Investments, the owner of Redbank Village, who initiated the rent spikes, has not made itself available to news media requests.
But a letter from Redbank management forwarded to NEWS CENTER Maine by South Portland City Manager Scott Morelli shows Redbank is concerned about the possibility of an eviction moratorium.
"Yesterday we learned the City Council planned to take up proposals we believe would hurt us and numerous other apartment owners in South Portland," Redbank management said in the letter. "We propose instituting a self-imposed cap on renewal increases to no greater than 10% of the average in-place rents for the property. We will impose this cap immediately."
Redbank Village did not specify if that 10% cap would impact tenants who already signed new leases.
But a last-minute move from South Portland city councilors detailed who this 10% cap, which they voted through, will help.
Below, is a list of scenarios in which tenants may or may not be eligible for the emergency ordinance of a 10% rent cap and eviction moratorium.
Eligibility scenarios for Redbank Village residents
If a tenant agreed and signed a lease on a rent increase, with the increase coming into effect before April 1, 2022, they will not be covered by this new ordinance.
If a tenant agreed and signed a lease with a rent increase after April 1, 2022, and the new lease is enacted before 5/31, they are liable for the rent increases during the moratorium period, but don't have to pay until the period is over. The tenant will be protected by the eviction moratorium, however.
But if a tenant agreed to a rent increase on or after April 1, and the new rent increase comes into effect on May 31 or later they are not liable for any rent increase that accrues during the moratorium period, they cannot be evicted during the moratorium period if they missed payments on the rent increase. The tenant will be liable for any rent accrued after the moratorium expires in November.
A public workshop to work through additional details on the eviction moratorium and the 10% rent cap will take place on June 14.