Over the past month, the National Apartment Association (NAA) led the real estate industry’s response to the U.S. Department of Housing and Urban Development’s (HUD) notice of proposed rulemaking that would require public housing agencies (PHAs) and owners of properties receiving project-based rental assistance (PBRA) to provide their residents with at least 30-days’ notice prior to filing for eviction due to nonpayment of rent.
NAA led coalition partners across the rental housing space to submit joint comments. Participating groups include NAA, Institute of Real Estate Management (IREM), Manufactured Housing Institute (MHI), National Affordable Housing Management Association (NAHMA), National Association of Home Builders (NAHB), National Association of Housing Cooperatives (NAHC), National Leased Housing Association (NLHA) and National Multifamily Housing Council (NMHC).
While well-intentioned, the proposed rule overlooks the financial hardship property owners and managers continue to face from federal interference in local eviction processes. Additional federal regulation in a sector long governed by state and local regulation creates too many inefficient and duplicative requirements. The 30-day notice requirement will exacerbate the post-pandemic backlogs in eviction courts, further delaying the process as owners face even more lost rent. Additionally, the proposed rule will have devastating ripple effects by disincentivizing participation in HUD programs, ultimately worsening housing supply and affordability challenges.
It is worth noting that NAA’s comments aligned closely with the public housing authority’s position reflected in the National Association of Housing and Redevelopment Officials comments on this proposed rule. NAHRO’s arguments identified several issues including the confusion that an additional layer of regulations will have on traditionally state- and locally-regulated eviction processes as well as highlighting potential disincentives for housing providers including the risk of harm to infrastructure and increased financial burdens. This is significant and reflects a convergence of perspectives across the rental housing industry.
As part of NAA’s ongoing regulatory advocacy efforts, industry comments were reinforced by NAA’s campaign to support our affiliate partners in filing their own comments as well as a targeted call-to-action for industry professionals. Thank you to our affiliate partners and more than 3,000 members who took action and submitted comments.
NAA will remain opposed to federal interference into eviction processes as we continue our work on a legislative solution to eliminate the federal CARES Act notice-to-vacate requirement for federally backed and federally assisted housing, which remains a contested issue in eviction courts today. Congress must pass H.R. 802, the “Respect State Housing Laws Act,” to make clear that this temporary federal notice requirement ended following the end of the CARES Act eviction moratorium in 2020.
To learn more, please contact Nicole Upano, NAA’s AVP of Housing Policy and Regulatory Affairs.