Habitability of Rental Property – What Can/Should a Municipality Do?

Municipal officials are often asked to intervene when landlords fail to keep up rental properties to the satisfaction of their tenants. But when can—and should—municipalities get involved in these often thorny situations? Generally speaking, towns should make it their practice to simply advise upset tenants that they should consult with legal counsel or a legal services agency to try to resolve the issues. However, when there are significant health and safety issues at hand, such as malfunctioning sewer or septic systems, water shortages, or highly dangerous maintenance issues involved, municipalities do have some authority to intervene. 

Under 14 M.R.S. § 6026-A, a municipality may intervene to provide maintenance, repairs, or utilities if a landlord has failed to meet its obligation to provide them, causing an immediate threat to the habitability of the leased premises. To do so, the municipality must first make an effort to contact the landlord in person, by phone, or by certified mail to inform the landlord of the problem and of the municipality’s intent to intervene. If the landlord cannot be contacted or does not respond by the deadline set by the municipality, the municipality may provide the services and place a lien on the property for the cost of the services and any related administrative costs (this would include legal fees). Note that the lien is neither top-priority nor self-foreclosing, unlike other municipal liens. (See the statute for further details.) Towns with a large number of rental properties may want to consider appropriating money to a designated account to fund these situations.

In certain situations, municipalities may also have recourse through their own property maintenance ordinances, as well as the dangerous building law (17 M.R.S. § 2851), and/or the local health officer statutes (22 M.R.S. §§ 454-A; 1561). The dangerous building law is generally used when a building or rental unit is in such a state of disrepair that it is clearly unsafe for habitation. The laws enforced by the local health officer are more appropriate when dealing with accumulation of trash, mold, or other “sources of filth.” 

When dealing with rental property, municipal officials may enter and inspect leased premises on invitation by the tenant. Any notices should be sent to the property owner and (if any) maintenance company, and copied to the tenants. As long as the municipality makes a good effort to follow the procedures under the applicable statute, there should be no liability to either the landlord or the tenant. Most of the decisions made and actions taken under these statutes are discretionary decisions for which there is immunity under the Maine Tort Claims Act.