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Comment

Director Thompson,

Hi, I'm a Realtor and a Property Manager. I assist a lot of renters who cannot find afford housing and they struggle with finding assistance with attaining funds needed such as deposits just to secure a home. The other issues faced are the rental increases every year. These prices, typically decided based off by market surveys/cma's, increase at minimum 3-5% yearly, while tenants don't receive increases income to meet market increases. Also, as a Property Manager, when this happens, there is a higher turnover in renting because a lot of tenants can no longer afford their rent, especially without any assistance. This causes more financial stresses and creates negative factors for both the Property Owner/Manager and tenant. The costs associated with the total eviction process weigh heavily on both. More times the tenant owes and cannot pay the money, has trouble finding another home, has an eviction on their credit/rental history, and it effects them for the next 7 years. On the other hand, the property manager may have to pay for damages to the property, lose income, and a lot of times, don't collect the monies owed.

Thank you for the opportunity to respond to your Request for Input (RFI) on how the Federal Housing Finance Agency (FHFA), in its oversight of Fannie Mae and Freddie Mac, can best provide affordable housing opportunities for renters. Approximately 40% of the National Association of REALTORS®'s (NAR) 1.5 million members own at least one rental housing unit, playing a vital role in providing safe, quality, and affordable housing in neighborhoods nationwide.

As the FHFA examines ways to improve access to affordable housing, it is critical to acknowledge the most significant driver of housing unaffordability is the limited supply of available housing. According to NAR data, the United States has an underproduction gap of over 5.5 million units – a key underlying reason housing costs have increased. On top of this, inflation has increased the prices of goods and services for all Americans. As housing providers strive to provide affordable housing opportunities in their communities, they also contend with rising mortgage rates and increased costs for supplies, services, and maintenance. When inflation is high, the prices of materials increase. That means it becomes exceedingly more expensive for construction teams to build new homes or renovate existing ones. Ultimately, these high costs spill into the housing market and lift home prices for new builds and existing housing.

As REALTORS®, we are committed to upholding the very specific provisions of our contracts with residents, and we often go above and beyond what is required to ensure residents have safe, quality, and affordable places to live. Rental housing is a deeply complex issue that is unique to every community. Creating additional layers of policies to a space that is already heavily regulated by state and local governments will have severe unintended consequences for renters as housing providers are leaving the market in communities where affordable housing is sorely needed.

Affordable housing is pivotal to creating paths to upward mobility for people across the country. I appreciate your commitment to ensuring we achieve this goal without impeding the creation of much-needed housing supply. Tiffany Jones