Comment Detail

Comment

Director Thompson,

These policies are well meaning but what ends up happening is the rules and regulations keep developers for building housing. I had 43 units in permitting. Then COVID hit and tenant did not have to pay rent nor face eviction. How can I pay my substantial mortgage? I ended up selling the property and it is still vacant. 43 units off the market because of well meaning governmental regulations. In addition, it California there are many rules that drive up the cost of housing. Wetland Issues, CEQA, solar, sprinklers, Cal Green rules, etc. Again, well meaning, but they drive up the price of housing. You can't build affordable housing now without governmental grants or tax credits which requires the developer pay California Prevailing Wage, a rate about 3 times what we pay local contracting workers. So these "affordable housing" units end up costing the tax payers about double what they would cost through the private sector. Just because a policy "feels good" does not mean that it is a good policy. Please understand ALL the market factors at play and your legislation will end up better able to help tackle this pressing issues.

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. Greg Pierson