The Portland City Council on Monday night unanimously approved a change to the city’s ordinance to tighten regulations on short-term rentals.
The measure amends the city’s ordinance to cap the number of short-term rentals at 1.5% of the city’s rental stock. For years, the number of short-term rental units has been capped at 400. The 1.5% cap means that number drops from 400 to about 290. Existing operators will not lose their licenses, but until the number of operators reaches the 1.5% cap, the city will no longer approve short-term rental license applications.
City Councilwoman Kate Sykes, who supported the measure, was quick to note that the number of short-term rentals permitted will increase as more housing is created in Portland.
“Hopefully we will create a lot more housing and when that happens, there will also be a lot more long-term rentals,” she said during council discussions.
The change also requires documentation to be provided proving that owners occupy the buildings where short-term rentals are taking place. It also introduces restrictions for the first time on Peaks Island by capping the number of non-owner-occupied short-term rentals at 40, which is close to the current number on the island.
The public hearing was attended by many short-term rental owners across the city who were concerned about the prospect of further regulations.
Betty Caden stressed that she will not get rich from the short-term rental business she runs.
“My family has lived in the house I live in for 102 years. In 1985, we built a granny flat for my mother, and shortly thereafter, my husband and I converted it into a short-term rental that supplements my retirement income,” Caden said. “I never thought I would have a steady income, but I do.”
Adam Stein, another short-term accommodation landlord, talked about how his business supports the local economy. He said he works with local cleaners, plumbers and electricians and sends his guests to local restaurants.
“Airbnbs have an impact on the economy, but I think it’s invisible to those who don’t have to maintain, operate and service them,” Stein said.
Mandy Miller, who rents both long-term and short-term units, said her short-term rentals allow her to help Portland residents with better rental terms.
“I have a long-term tenant on the ground floor who is an important part of Portland’s music scene and culture. I can only offer him this insanely great rent because my building, which I don’t occupy, is occupied by tourists,” she said.
George Rheault, who does not own any short-term rentals, spoke in favor of the proposed changes.
“I think these are very sensible changes. I think we should be accountable,” he said. “If it reduces the number of people who do this sort of thing, it’s because it’s not meant to be a picnic and it’s not meant to be easy money.”
City Councilman Roberto Rodriguez attempted to amend the measure to limit short-term rentals to 2% of the total rental stock.
“Here we have locals like you and me, regular people, trying to capitalize on our very lucrative tourism industry… I don’t like that we gave hotels this business a few months ago, but now we’re taking business away from locals,” Rodriguez said.
Mayor Mark Dion supported his amendment, but it ultimately failed and Sykes’ measure passed as originally proposed.
Affordable development approved
The council also approved funding for a new affordable housing development.
A Portland Housing Authority proposal for 70 East Oxford Street was presented to the City Council last month but was not approved after Sykes voted against the development.
This time, however, Sykes voted in favor and funding for the construction project was ultimately approved.
To finance the project, the developers asked the city for a total of $650,000 from the housing fund and $1.5 million from the tax increment over a 30-year period.
The project will involve demolishing four existing 40-unit buildings on the property between Cumberland Avenue, Oxford Street, Boyd Street and Mayo Street. One building on that property was filled with black mold this winter, creating dangerous living conditions for residents.
Instead, Portland Housing has proposed a six-story building with a total of 110 units. Of these new rental apartments, 55 would be mixed-income units, five would be market-rate units, and 50 would be affordable rent units. There would be a mix of studio, one-, two-, and three-bedroom apartments.
At the last council meeting, Sykes voted against the development because she did not like Portland Housing’s financing approach and would have preferred to use housing bonds instead – a process that Sykes said would be much more efficient for a housing authority.
During the public hearing, several people urged the council to approve funding for the project before MaineHousing’s important Aug. 20 deadline, which is the day new construction projects must apply for state funding, which is not possible without community support.
Jay Waterman, who works for the Portland Housing Authority, urged the City Council to support the project, saying the apartments at 70 Oxford Street are in dire need of renovation.
“(These units) are in terrible shape, we had to remove residents from those units, so the units we are putting in place would actually be a huge improvement for the public housing residents,” he said.
This time, however, after objections from the Housing Authority and other city councilors, Sykes gave in and voted for the project.
“I’ve been an advocate for public housing, that’s why I got elected… I’m going to vote for it tonight because I don’t want the Portland Housing Authority to have to start this project from scratch, but it pains me,” Sykes said before the vote.
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