Refunds and rent rollbacks
Rice and the union reached the deal Sunday following 20 hours of mediation, according to Realtor.com. In addition to reimbursing tenants for nearly $3 million in overcharges, the agreement includes fines and requires rent reductions.
Rice will reset rents across his 19 residential properties in Portland, totaling more than 300 units, to the legally allowable amounts charged on Dec. 1, 2022, the Portland Press Herald and Realtor.com reported.
Tenant refunds will include 10% interest, according to the Portland Press Herald. The union expects almost every tenant across Rice's properties to get hundreds or thousands of dollars back.
Realtor.com reported that the $3.6 million escrow account allocates roughly $2.86 million to tenant reimbursements and $250,000 to a fine payable to Portland. Another $230,000 will cover the union's past and future costs, while $260,000 will be reserved for possible overages.
Portland's rent limits and council approval
Portland ties its annual rent-increase limit to 70% of the change in the Greater Boston consumer price index, subject to a maximum increase of 10%, according to Realtor.com. The allowable increases have been below 3% a year since 2024; the limit for 2027 is 2.6%.
With the city itself a party to the settlement, the City Council voted unanimously on the Monday after the announcement to affirm its terms, the Portland Press Herald reported. Mayor Mark Dion called the agreement a "significant win for tenants of the city."
Union's origins and property-sale provisions
The Trelawny Tenants Union began in 2020 as neighbors organized a mutual-aid group during the COVID-19 pandemic, according to Realtor.com. Its treasurer, former Portland Mayor Ethan Strimling, is also a tenant in one of Rice's buildings.
Rice, who is in his late 80s, may be preparing to sell some properties, the Portland Press Herald reported. Strimling said he believes Rice entered negotiations because he needed to resolve past violations before selling.
The agreement provides for money to be added to the settlement account as Rice sells properties. It also gives the union mortgages on 10 of his properties to provide leverage, according to the Portland Press Herald.
