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Comment

Director Thompson,

I was the CFO for a variety of property management companies and for myself. Affordable house is an issue that your agencies could help solve with the creation of longer term loans and education for the people of our nation. Most that apply for housing of any kind have very rudimentary spending skills not knowing spending plans (budgets) nor the forethought of savings. I personally believe that should be addressed through your agencies in coordination with our education Secretary and consumer agencies. By addressing the basic fundamentals with our students coming through schools and addressing young adults and adults without these skills. This fundamentally would enhance their ability to strike out on their own when they could afford housing. Affordability is the next major issue which has many faucets but I don’t understand why we don’t offer 35 or 40 year loans to young people to bring payments within their ability to pay in their spending plans. The secondary market could and should function with these types of loans if backed by your agencies. The other options would be to pay people affordable wages.

Switching subjects, bring to our markets the ability for builders to be able to effectively build housing using federal funding and that funding to be purchased back as housing is sold off to buyers. Create urban areas that function. Housing, retail markets, professional offices, with matching transportation hubs. These examples already exist but not in great quantities throughout the United States. I would be willing to elaborate further with discussion in a round table format within our state and region if invited.

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. Raymond Kyle