On January 3, 2024, the Federal Housing Finance Agency (FHFA) released a report highlighting public comments they received regarding their Request for Input on Tenant Protections for Enterprise-Backed Multifamily Properties, where the Agency asked the public to comment on whether it should implement a new landlord and tenant requirements for mortgaged-property backed by Fannie Mae and Freddie Mac. This would include considering “limits on egregious rent increases for future investments” as their commitment to the White House Blueprint for a Renters Bill of Rights suggests.
The summary of responses focuses heavily on comments from advocacy groups pushing for the FHFA to take action to further regulate the housing industry by requiring that owners participate in the Section 8 Housing Choice Voucher Program, creating a publicly accessible rental registry, instituting limits on evictions and imposing forward-facing rent control. The Agency did acknowledge several of the concerns that industry stakeholders raised, including how increased regulation could cause instability in the market, discourage utilization of Enterprise-backed financing and exceed the FHFA’s executive authority. While the policies reflected in the report do not change housing providers’ federal compliance responsibilities at this time, FHFA suggests that “(t)hese responses will be foundational to FHFA’s future exploration of resident-centered management practices at Enterprise-backed properties.”
While FHFA’s formal comment period closed in June 2023 (more than 3,000 National Apartment Association (NAA) members cautioned the Agency not to add additional federal burdens to an already overregulated industry), the Agency committed to continue public stakeholder engagement through 2024 in the conclusion of its report.
NAA will continue its federal regulatory advocacy to urge FHFA to balance the needs of stakeholders equally, as well as broader market considerations, in future policymaking. NAA continues conversations with FHFA to reiterate the significant challenges associated with policies like rent control.