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Is Portland’s rent control ordinance working?

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Is Portland’s rent control ordinance working?


Madeleine Adelson lives in a two-bedroom residence with a roommate in Portland’s Parkside neighborhood. Her landlord lately went to the lease board to hunt a rise for capital repairs that she mentioned are routine. Derek Davis/Workers Photographer

Two years after Portland voters authorised town’s first lease management ordinance, the divide over whether or not it has helped stop giant will increase or just created confusion and burdensome necessities for landlords is extra clear than its results.

Metropolis voters first authorised lease management in 2020 by way of a citizen referendum and in November additional restricted annual lease will increase, banned utility charges, and upped the rent-increase discover to 90 days.

Supporters say the foundations give Portland tenants “the perfect protections on the East Coast,” they usually’re already beginning to see them repay.

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Some renters mentioned lease management has stabilized costs and made a risky housing market extra predictable.

“I simply think about, given what I’ve seen within the Portland market as a complete, that I’d be paying much more if lease management hadn’t occurred,” mentioned Madeleine Adelson, who rents a two-bedroom residence with a roommate for $1,500 per thirty days in Parkside.

However her landlord finds the brand new guidelines irritating.

“It is going to be onerous for house owners to justify making enhancements on this setting, and I feel we’ll see a decline in Portland’s housing,” mentioned Roger Buck.

Roger Buck outdoors his Grant Road buildings. Buck is anxious the 2022 updates to town’s lease management ordinance will not permit landlords to get well the prices of enhancements or have rents hold tempo with inflation and rising prices. Shawn Patrick Ouellette/Workers Photographer

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It’s most likely too early to know the long-term impacts.

“Rents across the nation have been rising at historic charges,” mentioned Elliott Simpson, who chairs town’s lease board. “Housing costs are up. There have been shifts in inhabitants, folks shifting from one place to a different. It makes it robust to see (the affect). There are a variety of components that have an effect on the place rents go.”

BOARD RELEASES RENT CONTROL DATA 

In its first annual report, launched in November, the lease board reported that costs of rent-controlled items elevated a mean of 1.6% from January 2021 to November 2021, in comparison with 2.5% in exempt items. The common lease in November 2021 for a rent-controlled one-bedroom was $1,281, in comparison with $1,111 in an exempt unit. The ordinance doesn’t apply to owner-occupied buildings with as much as 4 items, or these offered by housing authorities, faculties, spiritual teams, and hospitals.

The information has some limitations: 31% of the items surveyed didn’t present rents – exempt items aren’t required to and town mentioned some others simply didn’t comply.

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Town additionally doesn’t have long-term knowledge, so it’s onerous to say what typical will increase had been previous to lease management, and the board excluded greater than 1,000 items (about 11%) from its evaluation attributable to excessive lease will increase or decreases which will have been errors.

“What I can say with confidence is that as of now there is no such thing as a proof, to me, that the lease management ordinance has triggered any mass conduct adjustments,” mentioned Amir Familmohammadi, who labored on town’s first lease management report. He mentioned town wants extra knowledge to find out that for sure.

However Familmohammadi, who additionally served on the lease board, mentioned the obtainable knowledge is sufficient to indicate that almost all landlords have opted to maintain rents and lease will increase manageable.

Members of the Maine Democratic Socialists of America, which put lease management earlier than voters, mentioned the information is proof it’s working.

“(Earlier than) it was widespread for landlords to be jacking up lease and for folks to be like, ‘I can’t afford that so it’s time to maneuver,’ or simply tenants being evicted for no trigger, which is an ongoing situation on the state degree,” mentioned Wes Pelletier, who chaired the group’s 2022 referendum marketing campaign.

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“It’s untenable for folks in Portland to be residing in uncertainty, which was form of the norm and continues to be considerably the norm. The lease management ordinance was a giant step in direction of creating extra safety for employees in Portland.”

In distinction, Pelletier pointed to the big lease spikes in neighboring South Portland final 12 months, the place a brand new proprietor of Redbank Village raised rents by as a lot as $600.

However he mentioned Portland may do higher at citing landlords’ rent-control violations.

Jessica Grondin, a metropolis spokesperson, mentioned it’s about sources. and employees are already stretched skinny. She mentioned that interim Metropolis Supervisor Danielle West plans to ask for extra money within the upcoming finances to extend Housing Security Workplace employees and pay.

Enacting the ordinance has been troublesome with “a variety of confusion from landlords,” Grondin mentioned in an electronic mail. “It made the rental registration course of significantly extra advanced for landlords and employees.”

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A SOLUTION FOR TENANTS?

Portland is the primary neighborhood in Maine to move lease management, however the housing disaster is statewide.

In South Portland, councilors are contemplating a lease stabilization ordinance that might cap annual lease will increase at 10% for house owners with greater than 15 items.

In Biddeford, an inexpensive housing process power didn’t embrace lease management in its current suggestions. Town supervisor mentioned that though lease management could make housing extra inexpensive and create stability, it can also hold landlords from investing of their properties, restrict housing provide as a result of returns are usually not as excessive, and encourage landlords to preemptively elevate rents once they can.

Portland’s lease management permits landlords to boost rents annually primarily based on inflation. For the primary two years, they may elevate it by the total inflation price decided by the Client Worth Index. Voters lowered that allowed enhance to 70% of the CPI final 12 months and additionally eradicated an automated adjustment for tax will increase.

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Roger Buck’s buildings at 25 and 27 Grant St. in Portland. Shawn Patrick Ouellette/Workers Photographer

Landlords can go to the lease board to hunt extra will increase for main upgrades however should hold annual lease will increase to 10% or much less.

“I feel from the angle of housing suppliers, it’s tremendous complicated when it comes to monitoring the rental will increase they’re allowed and there have been a variety of misunderstandings,” mentioned Brit Vitalius, president of the Rental Housing Alliance of Southern Maine, which advocates on behalf of rental property house owners. “The quantity of will increase and what’s allowed and at what level, it’s simply induced chaos.”

Asking for a rise outdoors of the inflation adjustment or in a restricted set of different eventualities – resembling when a unit voluntarily turns over and lease may be raised by 5% – means showing earlier than the lease board. These appearances, with landlords and tenants current, may be tense.

Buck, the Parkside landlord, went to the board in December asking to boost rents on his flats between $58 and $211 per thirty days, to pay for capital enhancements, although he mentioned he deliberate to unfold the will increase out over a number of years.

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Adelson and different tenants went to the assembly, after being notified by town, to say that what he referred to as capital enhancements actually had been overdue repairs that didn’t justify lease will increase. Throughout a three-hour assembly, the board tabled Buck’s request.

“It was good to simply be capable of have an opportunity to remark,” mentioned Adelson, 31. “In every single place I’ve lived earlier than, the owner would simply enhance the lease and there’s nothing you are able to do about it.”

However Buck mentioned the method strained his relationship along with his tenants and created extra work for him.

To make his case, Buck submitted practically 50 pages of clarification and documentation.

Earlier than lease management, he mentioned, it was simpler to work with tenants. Now, arguing their circumstances within the public conferences, “we’re in an adversarial relationship,” he mentioned.

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Hans Breaux, 39, who lived at 27 Grant St. for 9 years earlier than shifting out final summer season to purchase a apartment, mentioned he had a very good relationship with Buck, however he did fear that in the future his lease won’t be renewed and he won’t be capable of afford to remain within the neighborhood.

Lease management, he mentioned, “did create a a lot stronger sense of safety in with the ability to keep in a spot the place my adopted household, my neighborhood, was.”

Sam Colson shares this small one-bedroom residence in The Wadsworth in Portland along with his son. He has arrange his sleeping space in the lounge whereas his son sleeps within the bed room. Gregory Rec/Workers Photographer

‘THE WRONG DIRECTION’

Vitalius, the president of the rental housing alliance, mentioned a variety of landlords, particularly smaller ones, have discovered the ordinance burdensome, and a few are promoting their buildings in consequence.

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Some landlords at the moment are caught with rents they stored low for good tenants however would have appreciated to extend. Others have raised rents when they won’t have carried out so earlier than as a result of they know they will solely elevate them a lot annually or when a brand new tenant is available in.

“It’s going within the mistaken course,” Vitalius mentioned. “It’s not creating extra housing. … It’s getting among the greatest landlords out of the enterprise and it’s created all these bizarre, perverse incentives. It is going to take years to see what the impacts are, but it surely’s not going to be good.”

Sam Colson rents a one-bedroom residence downtown along with his son for $1,494 a month. He arrange a makeshift mattress in the lounge whereas his son takes the bed room. Colson mentioned his lease elevated by about 7% final 12 months. He thought that was cheap.

“I really like that we have now lease management,” mentioned Colson, 52, although he added that everybody’s nonetheless adjusting. “I don’t need to say it’s working. I feel it’s extra applicable to say it’s going to work so long as folks concentrate.”

Vitalius mentioned the ordinance is deterring some builders and buyers, although there doesn’t seem like proof of that within the variety of housing items being proposed or being authorised.

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Christine Grimando, Portland’s director of planning and concrete improvement, mentioned numbers go up and down, however 2021 was the largest 12 months in current reminiscence for brand spanking new housing approvals.

In keeping with metropolis knowledge, 903 residential items had been authorised in 2021, up from 323 in 2020 and 444 in 2019. Simply over 500 items had been proposed in 2022, however some are nonetheless being reviewed. These totals don’t embrace a small variety of single-family and two-family houses.

Grimando mentioned the spike in 2021 was as a result of a number of massive initiatives converged at one time, and a few candidates had been making an attempt to get by means of the method earlier than town’s Inexperienced New Deal constructing code took impact.

“Lease management was not introduced up as an element to planning as a lot as inclusionary zoning necessities had been,” Grimando mentioned.


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Maine

Boothbay's botanical garden wants to collect samples of every native Maine plant 

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Boothbay's botanical garden wants to collect samples of every native Maine plant 


This story first appeared in the Midcoast Update, a newsletter published every Tuesday and Friday morning. Sign up here to receive stories about the midcoast delivered to your inbox each week, along with our other newsletters.

The Coastal Maine Botanical Gardens in Boothbay has big goals for its plants. 

The gardens are now looking to build several new facilities that would total 42,000 square feet and eventually include a collection of all native Maine plant life. 

Since opening in 2007, the gardens have drawn growing numbers of visitors to the midcoast — now more than 200,000 per year — with 300 acres of plants and grounds, as well as popular holiday light displays. But after that immense growth, the organization is now looking to focus more on its research capabilities. 

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The expansion, which still requires local approval, would include a 10,770-square-foot administrative and laboratory building, a head house, two greenhouses, a storage building, three hoop houses and several outdoor planting areas. The project would likely cost between $20 million and $25 million, with private grants helping to fund it. Construction could begin as soon as this spring.

Gretchen Ostherr, president and CEO of the gardens, said the expansion would help to pursue the gardens’ larger goal of inspiring connections between people and nature. 

“A part of that design is really about teaching people about plants and about plant conservation, and just really trying to inspire a love of plants, especially in young people, but really kids of all ages,” Ostherr said. 

While the organization currently does field research on plants, it does not have any labs where its scientists can work. Introducing a lab would allow the gardens to take more student researchers, use molecular biology and bring more educational value for visitors, according to Ostherr. 

It would also allow the organization to begin storing more plants in a variety of ways. That would include a collection of seeds from native Maine plants that have been dried and frozen — or “cryo-preserved.” The researchers would also be able to expand their herbarium — which stores plants that have been pressed onto paper — from 20,000 to 100,000 specimens. Ostherr said DNA can be extracted from these specimens. 

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Ostherr said the goal is to prevent any Maine plants from going extinct. The herbarium would initially gather specimens of all native plants in the state. Eventually, the organization hopes to gather specimens for all of them in northern New England.

“At the end of the day, we’re all reliant on the plants for life,” Ostherr said. “You know that we will at least have the DNA material, either in seeds or in the herbarium or in cryo-preservation, so that if something happens to a plant, we would have the ability to still study it and potentially even restore it.”

The new facilities would be located behind the back parking lot of the gardens and wouldn’t be open to the public, Ostherr said. However, guests would be updated on the ongoing research by educational signs and classes. 

Ostherr noted that the new facilities would be carbon neutral, using solar panels and electric heat pumps, as well as cisterns to collect and reuse rainwater.



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Maine

How Donald Trump’s ‘day 1’ agenda would hit Maine

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How Donald Trump’s ‘day 1’ agenda would hit Maine


President-elect Donald Trump will return to the Oval Office Monday and has vowed to carry out various “day one” priorities that could affect Maine.

Although the specifics of various pledges are still unclear or subject to changes from the mercurial Republican, the promises that could come to fruition as soon as Trump’s inauguration concludes Monday touch on everything from offshore wind to Jan. 6 rioters, among other issues.

His offshore wind ban is in the works.

Maine has failed to win a massive federal grant for a contentious offshore wind port that Gov. Janet Mills is proposing on Sears Island in Searsport, but that all may not matter if Trump carries through on his vows to halt offshore wind development.

Trump reportedly told U.S. Jeff Van Drew, R-New Jersey, to draft an executive order to halt wind projects. Van Drew told the Associated Press on Wednesday his draft order would halt offshore wind development from Rhode Island to Virginia for six months.

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That could allow Trump’s interior secretary nominee, North Dakota Gov. Doug Burgum, to review how leases and permits were issued. Under questioning from U.S. Sen. Angus King, I-Maine, he would not commit Thursday to honoring existing leases but generally said projects that “make sense” and are currently in law would continue.

Time will tell if Maine is included. Outgoing President Joe Biden’s administration already started selling leases for areas in the Gulf of Maine that could power more than 4.5 million homes.

Pardons may be on the table for Jan. 6 rioters from Maine.

Trump has vowed to pardon as soon as next week rioters who stormed the U.S. Capitol on Jan. 6, 2021, and disrupted Congress as it certified Biden’s 2020 election victory, but he has not been clear on whether he will seek to pardon all of the more than 1,500 people who have been charged, with more than 1,000 sentenced so far, or only pardon non-violent offenders.

Roughly a dozen Mainers have been charged in connection with the deadly riot that featured attacks on law enforcement officers. Four Mainers have been charged with violent offenses, and not every case is resolved.

The most prominent defendant, Matthew Brackley, a former Maine Senate candidate from Waldoboro, is serving a 15-month prison sentence after he pleaded guilty to assaulting police. Kyle Fitzsimmons, of Lebanon, received a seven-year prison sentence in July 2023.

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His Canada tariff plan already has Maine’s attention.

Trump has threatened to immediately slap 25 percent tariffs on imports from Canada and Mexico and higher rates on China. A delegation from Prince Edward Island is in Maine and other New England states this week to make the case for free trade.

Neighboring Canada is the state’s top trade partner, with wood products, seafood and mineral fuels among the key products that cross the border. Tariffs have previously played well politically in Maine but have hurt heritage industries at times, including during Trump’s first term.

U.S. Rep. Jared Golden, a Democrat from the rural 2nd District, reintroduced his measure Thursday to create a universal 10 percent tariff. Golden pointed to a Congressional Budget Office analysis that found it would raise $2.2 trillion through 2032. But economists have also warned of higher prices for consumers and slower global growth under Trump’s plan.

“Tariffs can be very complicated, but at the end of the day, this is what it means: If it costs our goods and services 25 percent more to come across the border, they’re going to be costing Americans 25 percent more to consume them,” Prince Edward Island Premier Dennis King said.



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Golden proposes universal 10% tariff, saying it will protect Maine workers

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Golden proposes universal 10% tariff, saying it will protect Maine workers


Rep. Jared Golden, D-2nd District, at his home in Lewiston in October. Brianna Soukup/Portland Press Herald file

President-elect Donald Trump promised to impose sweeping tariffs. Days before Trump is set to take office, Maine’s 2nd District Rep. Jared Golden has introduced similar legislation — a 10% tariff on all imported goods.

It’s intended to protect Maine industries and workers against unfair competition, Golden said.

The Democrat from Lewiston, fresh off a narrow reelection win in November, said in an interview that his proposal would put the U.S. on more equal footing with trading partners that for years have protected their industries and workers. In contrast, Maine has lost jobs in manufacturing, lumber and other industries because the U.S. has failed to shield its workers and markets from unbalanced trade, he says.

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“It’s a lie that we allowed ourselves to believe, that our allies around the world don’t pursue protectionist measures,” he said.

Golden pushed back against two arguments against tariffs: that the levies are inflationary because producers will pass added costs to consumers and that governments will retaliate against the U.S. with tariffs of their own.

He said an analysis by the Congressional Budget Office shows that a 10% “universal tariff” could spur a short-term increase in prices of some foreign goods and services, but would likely reduce the cost of other goods and services, drive up the incomes of American workers and have no long-term effect on inflation. Addressing the possibility of protectionist retaliation, Golden said U.S. markets are among the largest in the world widely sought by trading partners and other countries.

“For the time being, dollar for dollar, we’ll out-compete them. They need us,” Golden said.

Although the CBO report acknowledged no long-term inflationary impact, it predicts that cost increases would “put upward pressure on inflation over the first few years in which the tariffs were in place.” The analysis said increases in tariffs on U.S. imports and retaliation from trading partners over the next decade would reduce the size of the economy and increase businesses’ uncertainty about barriers to trade, cutting returns on new investments.

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Golden told the Washington Post that no House Republican or Democrat has agreed to co-sponsor his bill.

Representatives of Rep. Chellie Pingree, D-1st district, and Sen. Susan Collins, R-Maine, did not respond to emails Thursday seeking their opinions of Golden’s legislation. A spokesman for Sen. Angus King, I-Maine, said King is withholding comment on the issue of tariffs until more details emerge about policies developed by the Trump administration and Congress.

Kristin Vekasi, an associate professor in the Department of Political Science at the University of Maine, argues that tariffs are inflationary and would likely lead to a cascade of policies and responses that could ultimately undermine Golden’s intent to protect jobs.

“There’s broad consensus about some aspects of tariffs,” she said. “The thing that we generally see with tariffs is they increase prices for consumers.”

That could prompt the Federal Reserve to again raise interest rates to fend off inflation, in turn prodding investors to shift money to bonds, increasing the value of the dollar that would make goods less competitive in global markets and hurting production and jeopardizing jobs, Vekasi said.

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In addition, if retaliatory tariffs are imposed on hydropower from Canada and oil from other nations, higher energy costs would affect most industries, she said.

Stefano Tijerina, who teaches international business at the University of Maine Business School, said more than 50% of Maine’s trade is with Canada and tariffs “would affect us tremendously.” Lumber and tourists “mostly come from Canada” and lobsters fished off Maine typically end up in Canadian canneries, he said.

Many companies have moved to Canada and other nations to sell goods back to U.S. consumers, he said. “We’d be putting tariffs on our own products,” Tijerina said.

While Golden’s legislation can be interpreted as bolstering President-elect Donald Trump’s push for tariffs after he takes office Monday, Golden introduced similar legislation in September and said tariffs were established by President Barack Obama and President Joe Biden, both Democrats. A softwood lumber tariff dates to the Obama administration, he said, and Biden raised tariffs against China.

The 10% percent tariff would apply to all imported goods and services, and would increase or decrease by 5%, depending on whether the U.S. maintains a trade deficit or surplus.

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Golden said job losses accelerated in the 1990s due to the North American Free Trade Agreement, which has become a magnet of anti-free trade animus that crosses political lines from Vermont Sen. Bernie Sanders on the left to Trump on the right.



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