An Update on Renter Protections

In a bid to bolster the rights and security of renters, the Biden Administration has put forth a series of proposed measures to provide vital renter protections. These initiatives aim to enhance fairness in the rental market and create a more equitable housing landscape for all stakeholders involved. Recent developments through the Federal Housing Finance Agency (FHFA) indicate progress in this area, as the administration has taken proactive steps to request input on multifamily tenant protections.

Proposed Protections for Renters

Bloomberg highlights some of the protection measures that the White House is bringing forward:

• Standardized Rental Leases: The introduction of standardized rental leases aims to provide clarity and consistency in rental agreements, benefiting both tenants and landlords.
• Grace Periods for Late Rents: Proposed grace periods for late rent payments would provide tenants with additional time to fulfill their rental obligations without facing immediate consequences.
• Right to Counsel for Tenants: Recognizing the vulnerability of tenants facing eviction, the administration seeks to ensure access to legal representation to help protect their rights during eviction proceedings.
• Sealing of Eviction Records: The sealing of eviction records would help prevent these records from negatively impacting a tenant’s future rental opportunities.
• Ending Discrimination Against Affordable Housing Voucher Holders: The administration is preparing to initiate a nationwide effort to tackle discrimination against individuals holding affordable housing vouchers, specifically addressing bias based on their income sources.

New Updates on Federal Efforts Set to Impact Rental Housing

The National Multifamily Housing Council (NMHC), the National Apartment Association (NAA), and its members responded extensively to the FHFA Request for Input (RFI) regarding resident protections. Their response emphasized the significance of Enterprise capital in the market, the need to expand voluntary affordable housing programs for increased supply, and concerns about the potential adverse effects of adding federal rent regulations on top of existing state and local regulations for both renters and housing providers. They also raised doubts about FHFA’s legal authority to implement several proposed RFI measures.

The White House initiative aims to enhance transparency in rental housing fees and reduce costs for renters. NMHC expressed in a press statement that their members view cost transparency positively for both renters and housing providers. They disagreed with the generalization that all fees in rental housing are unwarranted and exploit residents, pointing out the lack of credible evidence supporting this claim.

In a recent Senate Banking Subcommittee hearing, NMHC and NAA contested the portrayal of how the rental industry employs fees and its connection to them. They emphasized that members of NMHC and NAA, much like any other businesses across the nation, and even the federal government, need to consider operational expenses to ensure ongoing operations and provision of housing services. This becomes particularly pertinent given the present combination of elevated interest rates, persistent inflation, and escalating operational expenditures, which encompass uncontrollable elements like insurance and property taxes.

HUD Leader Meeting

In July 2023, NMHC President Sharon Wilson Géno met with Department of Housing and Urban Development (HUD) leaders, housing providers, and various stakeholders in the housing sector. The discussion aimed to explore policy measures for increasing the nation’s housing supply. This meeting coincided with the release of two new fact sheets by the White House – an update on the Administration’s Blueprint for a Renter’s Bill of Rights and the other outlined efforts to reduce housing expenses and promote housing development.

Looking Forward After Congressional August Recess

Since Congress is currently on its August recess, NMHC is anticipating its return, marking the resumption of discussions regarding taxes and appropriations. The appropriations procedure will require swift resolution and is expected to be vigorously debated, especially following the recent agreement to raise the debt ceiling. In contrast, the tax deliberations might extend further into the year and are scheduled to be similarly intense. These discussions significantly affect housing providers’ capacity to provide and sustain essential rental housing.

Biden Administration New Zoning Plan

The Biden administration has introduced a plan to address rising housing costs by tackling restrictions from municipal bureaucracy that hinder construction. The program includes reducing land use barriers, increasing financing for affordable housing, and encouraging commercial-to-residential conversions. These actions align with the Housing Supply Action Plan. HUD will provide $85 million to support affordable housing through higher-density zoning and streamlined development. Communities with housing shortages can receive up to $10 million in HUD grants. The plan also focuses on protecting renters, ensuring fair tenant practices, funding tenant organizing, and extending eviction timelines. The administration aims to enhance housing supply and affordability through a comprehensive strategy.