Comment Detail

Comment

Federal Housing Finance Agency
400 7th St SW, Washington, D.C. 20024

July 31, 2023

Re: Tenant Protections for Enterprise-Backed Multifamily Properties Request for Input
From: Progressive Leadership Alliance of Nevada

Thank you to the Federal Housing Finance Agency (FHFA) and Director Thompson for issuing a Request for Information (RFI) on tenant protections in properties with federally-backed mortgages.

We are writing on behalf of the Progressive Leadership Alliance of Nevada, a social justice statewide organization comprised of over 35 member groups. PLAN’s mission is to build a fair and just Nevada for all regardless of their socioeconomic status.

Housing costs are American households’ single biggest monthly expense, and the rental crisis is threatening people’s ability to live safely in our state. Our current housing market fails to meet the affordability needs of many Nevadans and others across the country. In 2023, the average hourly wage needed to afford a one-bedroom apartment in the US was $23.67. With a shortage of truly affordable housing, tenants are left with few options. Meanwhile, the housing market is more consolidated than ever before, landlords are left unregulated in most communities, and the federal government has failed to pass meaningful housing legislation in years.

In Nevada, ever-increasing rents and lack of tenant protections have created an unaffordable housing market, leaving families struggling to maintain stable housing. The situation is exacerbated by corporate buyouts that disregard the impact on local communities. With no tenant protections in place, landlords are free to exploit the situation to their advantage, frequently raising rents without considering the financial strain and undue burden on the families living in the homes. As a result of these combined factors, Nevada faces one of the highest rates of evictions in the country and others are constantly in fear of losing their home.

Government Sponsored Enterprises like Fannie Mae and Freddie Mac work with banks to offer $150 billion to landlords in financing every year, without any strings attached. Their portfolios encompass over half of the rental market. As the regulator of these agencies, the FHFA should intervene to protect tenants and condition federal financing on a basic set of protections. With that in mind, we recommend that FHFA make the following policy changes as a result of this rulemaking process:
Rent regulations: Protect tenants from and limit egregious rent hikes. The FHFA should limit annual rent hikes to 1.5 times the Consumer Price Index or 3%, whichever is lower, in Enterprise-backed properties. These rent increase limits should be applied universally and as a requirement. Limits on rent increases will protect tenants from eviction and/or homelessness by creating a schedule for reasonable and gradual rent increases.
Good cause eviction: Prohibit evictions without good cause, ensuring every tenant has the right to a lease renewal. Good cause is defined as serious and repeated lease violations provable in a court of law.
Ban source of income discrimination: Prohibit landlords from discriminating against tenants based on their source of income including federal housing assistance (i.e., vouchers).
Freedom from discrimination: Enforce existing laws that prohibit landlords from denying a tenant rental housing based on race, physical or mental ability, and family make-up, and expand protections to prohibit discrimination based on sexual orientation, gender expression or identity, immigration status, conviction and/or arrest history, bankruptcy history, eviction history, or credit score.
Safe, quality, accessible housing standards: Require all landlords to keep their properties in good condition, and to ensure homes are accessible for people with disabilities. No renter should have to live in an inaccessible home or in housing conditions that put their health and safety at risk.
Landlord registry: Tenants should have access to information about their landlord including their name and phone number.
Tenant right to organize: Tenants have the right to form tenants’ unions or resident councils free from fear of retaliation from the landlord or managing agent. Ownership and management representatives must not interfere with the creation or actions of tenant organizations.
Fair leases: Landlords must use standardized and clearly defined leases free of abusive terms.
Office of Tenant Protections: A team charged with protecting tenants and enforcing their rights in properties with federally backed mortgages.
In addition, we encourage the FHFA to prioritize the needs of tenants in any subsequent rulemaking process, and to co-develop any policy resulting from this process alongside those most impacted by the housing crisis. This will help ensure that the impact is most effective and equitable.
Again, thank you for your attention to this matter. If you have any questions or would like to follow up, you can reach us at saslam@planevada.org, attn: Shanzeh Aslam.

Sincerely,
The Progressive Leadership Alliance of Nevada