Not only did 2024 continue the previous year’s trend of increased attention on housing affordability from federal, state and local policymakers, it surpassed it. Housing issues, specifically the need for greater supply, were even a key theme of this year’s presidential contest. While a first in presidential politics, it is not surprising given public opinion polling, which shows large majorities of voters with significant concerns about the cost of housing.
The National Apartment Association (NAA) engaged in these debates from the beginning, and as the 118th Congress wraps up and the Biden Administration comes to an end, there are many policy accomplishments to celebrate. What follows is an update on what the new year will mean for the rental housing industry, particularly on our efforts in Congress and with a new administration.
What the 2024 Election Means for Housing
Housing policy – and particularly a focus on housing costs – was at the forefront of this election. In his campaign for the White House, President-elect Donald Trump (R) outlined the following pillars of his federal approach to housing policy:
Help new homebuyers by reducing mortgage rates by slashing inflation and opening limited portions of federal lands to allow for new home construction;
Promote homeownership through tax incentives and support for first-time buyers;
Cut unnecessary regulations that raise housing costs; and
Ban mortgages for undocumented immigrants and mitigate increases in housing costs due to illegal immigration.
In addition to capturing the White House, Republicans will also take control of both chambers in the 119th Congress. Republicans won the U.S. Senate by flipping key seats in Ohio, Montana, Pennsylvania and West Virginia, and will control the chamber with 53 seats. The party also narrowly retained the U.S. House.
Beyond the presidential campaign, housing was on the ballot in states and localities across the country. In total, NAA tracked 19 ballot measures across seven states that would impact housing – ranging from rent control to affordable housing and property taxes. While the results were varied across states, California’s Proposition 33 – which would have allowed rent control policies to expand to properties built after 1995 and limit housing providers’ ability to raise rents to market rates upon move-in also known as “vacancy decontrol”– notably failed.
An increased focus on housing throughout the election ultimately points to an increased desire for policy action. As NAA President and CEO Bob Pinnegar stated after election day: “This election made clear that housing is top of mind for voters throughout our country, and it’s past time to come together and meaningfully address longstanding housing affordability challenges. Working alongside our nation’s elected leaders, NAA looks forward to sharing the unique perspective of rental housing professionals to ensure the industry’s voice is a part of important policy conversations.”
Read more about this year’s election results.
Building the Foundation in Congress
Over the past year, NAA successfully built bipartisan, bicameral support for sustainable policy solutions that address the historic undersupply of housing and that protect the nation’s rental housing infrastructure for future generations of renters. All three of our proactive pieces of legislation are bicameral and bipartisan, a significant accomplishment in a noisy political environment. Even more, the progress these priorities made builds a firm foundation for more responsible housing policy solutions in the 119th Congress.
The Respect State Housing Laws Act clarifies that the federal CARES Act pre-eviction notice requirement ended when the CARES Act eviction moratorium expired in 2020. We must eliminate any ambiguity which allows this point to remain a contested issue in courts today. This bill passed successfully out of the House Financial Services Committee and was included, at NAA’s urging, in the House-passed HUD appropriations bill.
The YIMBY Act, reintroduced in both the House and Senate, incentivizes local communities to remove barriers to apartment development. The legislation passed unanimously and on a bipartisan basis out of the House Financial Services Committee in May.
The Choice in Affordable Housing Act, also reintroduced in both chambers of Congress, enacts much-needed common-sense reforms to the Section 8 Housing Choice Voucher (HCV) program. This legislation has slowly built strong support, especially in the Senate and while it will not pass this session, it remains well positioned for re-introduction in the 119th Congress.
NAA also worked with Congressional offices to highlight important federal regulatory issues. These include complexity in the Section 8 program, and Biden Administration proposals from the Federal Housing Finance Agency (FHFA), Department of Housing and Urban Development (HUD), the Federal Communications Commission (FCC) and United States Postal Service (USPS). Members of Congress from both sides of the aisle, at NAA’s urging, weighed in with regulators directly on the industry’s behalf.
Tax Policy a Key Priority in 2025
Undoubtedly, tax reform will be the cornerstone focus on Capitol Hill in the year ahead. Key elements of the 2017 Tax Cuts and Jobs Act (TCJA) – passed under the prior Trump Administration – expire in 2025. Every member of the rental housing industry will be impacted in some way by the outcome of those deliberations, and NAA will be at the forefront to ensure the industry’s voice is heard.
NAA will work to protect key provisions from the TCJA that protect the industry’s long-term viability and promote housing affordability, including:
Individual tax rates
Qualified business income deductions up to 20%
(section 199A)Expanded estate-tax exemption.
Additionally, NAA will work alongside lawmakers to explore other tax incentives that would boost housing supply – from expanding the Low-Income Housing Tax Credit and enacting the Workforce Housing Tax Credit Act to enhancing opportunity zones and encouraging the use of adaptive reuse.
NAA’s Federal Regulatory Advocacy
In 2024, Biden Administration activities touched all aspects of owning, managing and developing rental housing. NAA responded at every turn to relevant federal regulatory activity and proactively inserted the industry’s perspective in national policy conversations.
- "Junk Fees" - Thanks to the tireless advocacy of the NAA and its industry partners, the Federal Trade Commission (FTC) notably excluded the rental housing industry from its final “junk fees” rule, Trade Regulation Rule on Unfair and Deceptive Fees. It is an acknowledgment that the landlord-tenant relationship fundamentally differs from the single-point transactions ultimately regulated in the rule. The FTC’s final rule focuses on total price and fee disclosure requirements for live-event ticketing and short-term lodging industries.
Filing Beneficial Ownership Information – The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) previously announced new “beneficial ownership information” reporting requirements. This requires business owners to disclose information about individuals who directly or indirectly own or maintain substantial control over a reporting company, or an individual that directly or indirectly owns more than 25% of the ownership interests of the reporting company. These new filing requirements are expected to have a significant impact on independent rental owners. Learn more about BOI.
Landlord-Tenant Requirements for Fannie/Freddie Properties – During the Biden Administration, FHFA considered federalizing landlord-tenant requirements for Enterprise-backed multifamily housing i.e., properties backed by Fannie Mae and Freddie Mac (the Enterprises). FHFA and the Enterprises already announced that a 30-day notice of rent increase, 30-day notice of lease expiration and a five-day grace period from late fees will be required for new loan applications beginning in February 2025. While this measured approach was welcome news, onerous requirements remain on the table, such as rent control, just cause eviction limitations that effectively eliminate housing providers’ right to nonrenewal and a “source of income” mandate intended to require housing providers to accept Section 8 Housing Choice Vouchers. NAA looks forward to continuing the conversation with regulators to elevate the industry’s perspective on these issues.
Enhanced Standards to Address Lead Paint Hazards – The Environmental Protection Agency (EPA) issued its final rule dramatically altering how dust hazards from lead-based paint are defined and remediated in covered rental housing. The final rule reduces the level of lead dust considered hazardous to “any reportable level as analyzed by any laboratory recognized by EPA’s National Lead Laboratory Accreditation Program” and substantially reduces the threshold for clearance post-abatement, increasing operational uncertainty for housing providers and confusion among renters and their families about potential lead hazards in their homes. NAA worked closely with the National Multifamily Housing Council and its coalition partners in our advocacy efforts to uplift the industry’s concerns about EPA’s approach to achieve further reduction of lead dust levels and all options remain on the table to protect the industry from bad policy.
Mail Delivery Impacted at Rental Communities – NAA continues its work on the student housing reclassification issue that resulted in leasing staff being required to deliver mail to residents. Now a new issue is on the horizon: As a continuation of Project Safe Delivery, USPS announced replacement of physical keys to electronic systems to reduce safety risks to letter carriers and their liability for fraud. NAA is elevating industry concerns about implementation delays of replacement keys that have led to negative repercussions, similar to the student housing issue.
NSPIRE Inspections – HUD extended the compliance deadline for assisted housing providers that are now subject to NSPIRE inspections, moving the deadline for housing benefiting from the Section 8 Housing Choice Voucher program from Oct. 1, 2024, to Oct. 1, 2025. Much like the widely attended education session at the 2024 Apartmentalize conference, NAA will continue to work with HUD and industry leaders on both in-person and virtual opportunities to help members understand their new compliance responsibilities.
Section 8 HCV Partnership with HUD – In 2024, NAA embarked on a new collaboration with HUD to promote the unique challenges that housing providers face by participating in the program across the country and explore regulatory channels to make meaningful improvements that help housing providers better serve voucher holders and their families. The multi-city roadshow includes Boston; Charlotte, N.C.; Cleveland; El Paso, Texas; Las Cruces, N.M.; Philadelphia; San Diego; and Tampa, Fla.
In 2024, NAA’s Executive Committee and volunteer leaders met with federal regulators and reinforced the industry’s perspective on important regulatory issues related to the Section 8 HCV program, borrower responsibilities for Enterprise-backed housing and insurance.
Getting Involved
As always, your participation in all of these efforts is crucial. NAA’s partnership with our affiliates and members is why we enjoy so much success in our advocacy efforts. There are many options for how you can contribute. To learn more, contact Seth Turner, Senior Manager of Grassroots Advocacy & Stakeholder Engagement, at [email protected].
In order to make tangible progress on tax policy and with our sustainable housing policy solutions, we need your voice at Advocate 2025, NAA’s annual Capitol Hill fly-in. Join us March 25-26, 2025, in Washington, D.C., to help build consensus in Congress and ensure that your voice is heard. Learn more about Advocate 2025.
Greg Brown is SVP, Government Affairs, and Nicole Upano is AVP, Housing Policy and Regulatory Affairs for NAA.