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Comment

Director Thompson,

Many times over the past 40 years that I have owned rental property, tenants have run into financial problems and could not pay the rent. Most recently the main tenant in a 4 unit property was diagnosed with a cerebral tumor and not able to work. I dropped their rent for three months by 1/3 without asking for repayment. Small landlords always help tenants. We like a tenant, they take care of the property and we are reluctant to raise the rent.
With the new rent control laws in place demanding payments to tenants, landlords are forced to raise the rents to cover the costs created by the laws..
Just prior to Covid I filed an eviction notice for non payment of rent. Due to the California courts being closed the tenant was able to stay in the property for 10 months without paying rent. I had to cover the lost rent and spend $40,000 to rebuild the place due to the damage he caused. It will take me 15 years to recoup the loss.
Small investors have no incentive to invest in rental real estate because of the onerous laws passed by local and state governments that give tenants more rights than the owner has.

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. Sam Calvano