A coalition of 18 national trade associations representing the stakeholders in the housing industry sent a letter to Federal Housing Finance Agency (FHFA) Director Sandra Thompson warning that mandatory rent control and rent stabilization policies will increase rents, reduce the capital needed to expand the housing inventory and, ultimately, have a negative impact on current and future renters.
The letter comes as the FHFA considers changes for Fannie Mae and Freddie Mac-backed multifamily properties. The signatories asked FHFA to drop the proposed condition of rent regulation as a requirement for Fannie Mae and Freddie Mac-backed financing and create additional voluntary incentives within their respective programs to expand the supply of needed affordable housing.
“Rent regulation is not equitable as it does not target lower- and moderate-income renters that are in most need of assistance, support and stability,” the coalition stated. “Instead, it incentivizes current renters to remain in place for longer periods of time and disincentivizes additional investments in housing, thereby limiting opportunities for others who do not have access to the rental housing market in favor of those that already do. This inequitable approach most impacts people of color who already have limited access to many housing markets, especially those with good schools, nearby public transportation and other amenities.”
The trade group signatories include the American Seniors Housing Association, Council for Affordable and Rural Housing, Commercial Real Estate Finance Council, Institute of Real Estate Management, Leading Builders of America, Manufactured Housing Institute, Mortgage Bankers Association, NAIOP – the Commercial Real Estate Development Association, National Apartment Association, National Association of Home Builders, Nareit, National Association of Realtors, National Association of Residential Property Managers, National Housing Conference, National Housing & Rehabilitation Association, National Leased Housing Association, National Multifamily Housing Council and The Real Estate Roundtable.