On May 30, the Federal Housing Finance Agency (FHFA) issued a Request for Input (RFI) on tenant protections at multifamily properties with mortgages backed by Fannie Mae and Freddie Mac (the Enterprises).
Through their role as secondary market participants in the multifamily housing market, the Enterprises have a public mission to support the availability of safe, decent and affordable housing. This RFI will assist FHFA in exploring possible ways that the Enterprises could advance their mission. Specifically, the RFI will:
- Collect information that highlights tenants’ experiences and stakeholders’ perspectives; and
- Solicit ideas for improved data collection to better quantify the size and scope of the issues identified by tenants.
“The Enterprises have a responsibility to not only ensure liquidity is available for affordable rental housing, but also to address challenges faced by tenants and property owners in the multifamily housing market,” said Director Sandra L. Thompson. “FHFA is seeking public input to help identify these challenges nationwide, particularly in underserved communities.”
FHFA took a number of actions that provided multifamily tenant protections and support for multifamily property owners during the COVID-19 national emergency. FHFA’s decision to evaluate the Enterprises’ multifamily tenant standards is based on lessons learned from COVID-19, rising rents, and a shortage of safe and affordable housing in America.
FHFA invites interested parties to provide written input, feedback, and information on all aspects of this RFI by July 31, 2023. Comments may be submitted via FHFA’s website (select “Tenant Protections” from the “Select a Topic” menu) or mailed to the Federal Housing Finance Agency, Office of Multifamily Analytics and Policy, 400 7th Street, S.W., Washington, D.C. 20219.
FHFA seeks to address some of the issues identified in the Blueprint for a Renters Bill of Rights announced by President Biden in January, while recognizing that the Enterprises are limited in their ability to require certain changes or actions given their role as secondary market participants.
An example of the sort of rule FHFA is contemplating is one FHFA announced on July 28, 2021. It requires that tenants who live in an Enterprise-backed multifamily property and become subject to eviction for nonpayment of rent have the right to receive 30 days’ notice before being required to leave the occupied unit.
The full Request for input document can be found here.
