Comment Detail

Comment

On behalf of Miami Homes for All, we are pleased to submit our comments on tenant protections in multifamily homes with financing backed by Fannie Mae and Freddie Mac. We extend our gratitude to the Federal Housing Finance Agency (FHFA) for conducting this request for input and allowing us the opportunity to contribute to this critical matter.
As you are aware, Fannie Mae and Freddie Mac play a crucial role in the multifamily lending market, providing approximately $150 billion in financing to landlords each year. While their intervention promotes liquidity and mitigates default risks for lenders, we must address the implications of tenant protections. Enterprise-backed financing has resulted in a landscape where real estate investors benefit significantly, often at the expense of tenants who lack adequate rights and regulations for their safeguards.

We acknowledge the importance of the GSEs in supporting the multifamily housing finance system, but we must confront the consequences of their practices. It is troubling to observe a pattern of overvalued loans being purchased and guaranteed by the GSEs, often leading to circumstances where landlords prioritize profit over tenant well-being. Such loans are maintained on rent hikes, increased fees, deferred maintenance, and even tenant evictions, exacerbating the housing crisis and perpetuating predatory behaviors. As the regulator and conservator of the GSEs, the FHFA holds the power to introduce essential tenant protections in approximately 8 million rental units backed by Enterprise mortgages. By doing so, the FHFA can ensure the stability of the secondary mortgage market and preserve the availability of affordable rental housing. These tenant protections are pivotal in fostering a housing system that promotes affordability and advances racial justice. We find ourselves in an unprecedented housing crisis marked by soaring unaffordability, eviction rates, and homelessness. According to 2021 data, 49% of US renters are cost-burdened by unaffordable rents, allocating more than a third of their income to housing. The rental prices have seen record growth of 17.2% year-over-year nationwide, adding to the strain experienced by vulnerable communities. Corporate landlords have capitalized on these hardships, exploiting inflation to hike rents and amass exorbitant profits. These practices have intensified housing inequalities and worsened the living conditions of countless individuals and families.

Given the urgency of this situation, we strongly urge the FHFA to take bold action in implementing robust tenant protections within the Enterprise-backed financing system. It is essential to address the existing disparities and ensure that the rights and well-being of tenants are prioritized, alongside the interests of real estate investors. By embracing meaningful reforms, we can work together towards a housing system that is fair, equitable, and supportive of all people, regardless of their socioeconomic background. Thank you again for providing us with the space to contribute to this vital discussion. We trust that our collective efforts will lead to positive change and strengthen our communities' resilience during these challenging times.

Thank you,
Miami Homes For All, Inc.