Fee on hotels proposed to address affordable housing crisis

PORTLAND, Maine (AP) - Portland, Maine, officials are proposing the creation of a new fee on hotels to help address the city’s housing shortage.

Officials say the new fee is needed because hotels are very profitable, yet they rely on low-wage workers, who can’t afford to live near their workplaces. The Portland Press Herald reports the $5,000 a room hotel linkage fee would apply to new hotels being currently built.

City officials say the fee could apply to roughly 400 hotel rooms expected to be built by 2020. The plan follows a local study that found Portland is adding hotel rooms much faster than the national average.

The City Council’s Housing Committee last Wednesday sent the proposal to the Planning Board with a positive recommendation.