Comment Detail

Comment

Director Thompson,

I am both a real estate agent and a multifamily investor in CT. As a small "mom & pop" landlord the margins are very slim. While I was just barely able to break even many of my clients and fellow investors lost a ton of money during COVID due to eviction moratoriums. Those who survived have been further impacted by new tenant friendly legislation that now provides tenants with the right to free legal counsel. Many landlords have chosen to sell their properties while others have raised their standards and are leaving units vacant for months out of fear they will be unable to evict non-paying tenants. I personally offer safe, clean, affordable housing at below market rents. I have recently contemplated selling my properties due to slim margins and increased burden of regulation. Rent control or any form of additional regulation that would negatively impact landlords will likely push me and many of my fellow landlords over the edge. I will either be forced to sell or pass the increased costs on to my tenants. More government regulation is NOT the answer.

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. Stephen Cornell