White House Rental Rights Proposal Gets Industry Pushback

When the White House published its guidelines for protecting renters, it provoked some strong reactions — on the multifamily side but also from housing advocates.

The Biden administration’s so-called Blueprint for a Renters Bill of Rights included a number of items that were more thoughts than actions, explained as a set of five principles. Those were access to safe, quality, accessible, and affordable housing; clear and fair leases; education, enforcement, and enhancement of rights; the right for tenants to organize; and eviction prevention, diversion, and relief.

However, the document started with a 318-word legal disclaimer explicitly saying that it was “not binding and does not itself constitute U.S. government policy” and also “is not intended to, and does not, create any legal right, benefit, or defense, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person, nor does it constitute a waiver of sovereign immunity.”

The administration’s fact sheet was presented as “new actions to increase fairness in the rental market and further principles of fair housing.” These included the following:

• The Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) “will collect information to identify practices that unfairly prevent applicants and tenants from accessing or staying in housing in order to inform enforcement and policy actions under each agency’s jurisdiction.”
• The CFPB will “will issue guidance and coordinate enforcement efforts with the FTC to ensure accurate information in the credit reporting system and to hold background check companies accountable for having unreasonable procedures.”
• The Federal Housing Finance Agency will “examine proposed actions promoting renter protections and limits on egregious rent increases for future investments” and also “increase affordability in the multifamily rental market by establishing requirements that encourage the financing of multifamily loans that guarantee affordable housing.”
• The Department of Justice plans guidance updates on anti-competitive information sharing in rental markets.
• The Department of Housing and Urban Development will propose a rule requiring “public housing authorities and owners of project-based rental assistance properties to provide at least 30 days’ advanced notice before terminating a lease due to nonpayment of rent.”
• The administration plans quarterly meetings “with a broad, diverse, and varying group of tenants and tenant advocates to ensure they continue to have a seat at the table and can share ambitious ideas to strengthen tenant protections.”

As might be expected, CRE groups were not pleased. The National Apartment Association made the following short statement: “For months the National Apartment Association (NAA) worked with the White House in good faith. We stand by our commitment to promote industry resident services and practices. NAA also made clear the industry’s opposition to expanded federal involvement in the landlord/tenant relationship. Complex housing policy is a state and local issue and the best solutions utilize carrots over sticks.”

The National Multifamily Housing Council (NMHC) issued a longer statement that also emphasized working “in good faith with the Administration on its Resident-Centered Housing Challenge” but then added, “While they have rejected calls for failed policies such as national rent control, we are disappointed they are pursuing potentially duplicative and onerous regulations that are already appropriately addressed under state and local law. These efforts will do nothing to address the nation’s housing shortage and could discourage much-needed investments in housing.”

Some tenant advocacy organizations weren’t entirely happy either. “Organizers with People’s Action and the Homes Guarantee said the announcement included some wins, like getting the Federal Housing Finance Agency to work on identifying ways to adopt and enforce tenant protections, including policies that limit high rent increases at properties with FHFA-backed mortgages,” reported the Washington Post. “But in an analysis of the proposals, they said the policies weren’t enough to change ‘tenants’ lives materially today.’ The announcement includes no conditions on federal financing, for example, but instead gets closest with a carrot approach, like providing incentives to landlords who accept vouchers.”