Portland Rent Board approves $15,868 monthly rent increase request for 231 State St., conditions it on code resolution

The Portland Rent Board approved a rent‑increase application from BJB Realty for 231 State Street (31 units) with a recalculated total monthly increase of $15,868, subject to the condition that outstanding building code violations (primarily related to fire safety/doors) be formally closed by city code officials.

The application prompted extensive board questions about expense classifications, accounting categories carried forward from the 2019 base year, capital versus operating treatment, and owner‑performed labor. Applicant representative Mr. Marin provided an Excel conversion of the application and general‑ledger details, explained mapping between company chart accounts and the MNOI worksheet, and answered questions about payroll allocation, property taxes, snow‑plowing allocations across a portfolio, and capital projects tied to code‑related work.

Board members proposed and the board accepted three substantive adjustments before voting: (1) capitalize certain identified capital items (notably flooring/refinishing and several other items raised in deliberations) and amortize over an appropriate useful life; (2) remove a category of contributions (donations and membership fees) from allowable expense calculations; and (3) adjust capitalization/amortization inputs that reduced the proposed monthly increase. After the changes and a final amendment to address capitalization items, the board voted to approve a total monthly increase of $15,868. The board also added a condition: the increase may not be implemented until the city’s fire/code official verifies that the notices of violation have been closed.

One member said he would vote no (citing ongoing concerns about overhead increases tied to new ownership) but the motion passed by majority. The board directed staff and counsel to draft final findings and conclusions for the record and to return those for the next meeting.