Portland Rent Board finds 59 State Street LLC in substantial noncompliance; orders refunds, forfeits banked rent and sets $50,500 penalty

The Portland Rent Board on June 5 unanimously found that 59 State Street LLC was in substantial noncompliance with the city's rent-stabilization ordinance and ordered refunds, forfeiture of banked rent for the period in question and a $50,500 penalty.

The board's action stems from an appeal brought by the Trelawny Tenants Union challenging rent increases and other practices at 59 State Street. Chair Matthew X opened the special meeting and the board moved first to resolve standing. After deliberation, the board voted unanimously that, "pursuant to section 6-243(a) and based on the evidence provided by Trelawny Tenants Union," the union had sufficiently demonstrated it was asserting the rights of tenants at 59 State Street.

Board members said the standing question was fact-specific and low evidentiary thresholds in the ordinance favored allowing the union to pursue the appeal. Ben Gaines, counsel to the board, advised the panel to base its decision "on the plain language of the ordinance," and to tie any broader findings to the record in this case.

Having resolved standing, the board took up whether the property owner had violated provisions of Chapter 6. The board voted unanimously to find 59 State Street LLC in substantial noncompliance with multiple provisions of Chapter 6, specifically citing violations of sections 6-234(b) and 6-234(c), and identified an evidentiary period for the finding from Dec. 1, 2022 through the filing date of the appeal (July 3, 2024).

As remedies the board ordered that every rent increase imposed since Dec. 1, 2022 is prohibited for the period of noncompliance, that the last compliant rent level for each affected unit is the rent charged on Dec. 1, 2022 (or a prior level identified in a Housing Safety Division notice), and that any rents demanded, accepted or retained above that level must be refunded to the affected tenant or tenants of each unit. The board also forfeited banked rent at 59 State Street for the same Dec. 1, 2022'through'July 3, 2024 window.

Finally, the board assessed a monetary penalty to be paid by the landlord. After discussion about methodology and amounts, the board set a total fine of $50,500 to address the identified violations; the figure was adopted by roll-call vote and reflects the board's chosen calculation for the months and violations it found during the stated period. Board counsel confirmed the board has authority under Chapter 6 and related city code provisions to determine penalties and craft findings tying remedies to the factual record.

Board members said the decision form would spell out the findings of fact and the board's rationale in detail. Counsel Ben Gaines told the board that the findings should be specific to the record and that any broader precedential effect would be limited to the facts before the panel. The board voted unanimously on the motions that implemented these outcomes.

The panel also decided to take up the related appeal for 655 Congress Street later; the members agreed to table that item to the board's next regularly scheduled meeting so that absent boardmember Ann Laura could participate.

The decisions will be reflected in a formal decision form to be drafted by board counsel and staff; the board said it expects the written record to explain the factual bases, the applicable sections of Chapter 6, and the remedies ordered.