The U.S. Department of Housing and Urban Development (HUD) is releasing best practices related to application fees and leasing costs. In the open letter, Secretary Marcia Fudge urged housing providers and companies that provide leasing services to adopt policies that promote fairness and transparency in the process.
This announcement is part of the Biden Administration’s push to eliminate “junk fees” and was released in conjunction with White House and Consumer Financial Protection Bureau (CFPB) calls for state crackdowns on “unavoidable, unnecessary or surprise charges.” It also follows a sweeping Request for Information issued jointly by the Federal Trade Commission and CFPB seeking information on source of income and resident screening practices.
In light of these actions, National Apartment Association (NAA) members should expect heightened scrutiny of how rent and fees are set. NAA continues to push back on expanded federal intervention in the landlord/tenant relationship and counsels the White House and federal agencies against increased federal involvement in the highly-regulated and localized leasing process. We will need every member to remain engaged to amplify the collective voice of the rental housing industry and ensure our perspectives are heard in these important policy discussions.