Navigating Tenant Protections in Multifamily Housing: A Call for Balanced Solutions

By Erika Misseri, VAMA Government Affairs Coordinator

 

US VA Senators Mark Warner and Tim Kaine, alongside 15 other Democratic Senators, signed on to a letter by Senator Sherrod Brown (D-OH) addressed to the Federal Housing Finance Agency (FHFA) regarding tenant protections for Fannie and Freddie properties. The letter, in essence, takes a sweeping stance on the multifamily rental housing industry, expressing support for a wide range of measures, such as rent control, just cause requirements for eviction and lease non-renewal, landlord registration, tenant organizing, and more.  
 
As dedicated housing providers committed to offering secure, affordable, and well-maintained rental properties, it is imperative that we contribute our perspective to the ongoing discourse surrounding Senator Brown's proposal for enhanced tenant protections in multifamily properties financed by Fannie Mae and Freddie Mac.   
 
Firstly, let us emphasize that we share Senator Brown's objective of improving housing stability. We acknowledge the unfortunate instances where certain tenants have experienced unjust treatment and encountered challenging living conditions. Nevertheless, the tenant protection measures outlined in the letter have prompted valid concerns within our industry, which merited our attention. Consequently, we discussed these concerns in a meeting held on September 7th with representatives from the VAMA and AOBA organizations, as well as Senator Warner's Legislative Aide.  
 
Balancing Supply and Affordability  
As communicated, one primary concern revolves around potential repercussions on housing supply, particularly regarding affordable housing options targeting individuals with lower levels of area median income (AMI). The multifamily housing industry plays an essential role in addressing the nation's housing shortage; thus, there exists apprehension that some of these suggested regulations may impede our ability to provide affordable choices.  
 
Incorporating rent control measures along with "just cause" non-renewal requirements and "source of income" safeguards might inadvertently discourage investment in the rental housing market. While well-intentioned, historical data demonstrates that such policies often fail to address underlying causes contributing to challenges concerning affordability.  
 
A Solution-Focused Approach  
Rather than imposing stringent regulations outright, adopting a more constructive approach would involve addressing fundamental issues causing imbalances within housing supply. We advocate for legislative initiatives like the "Yes in My Backyard (YIMBY) Act", "Choice in Affordable Housing Act," among others—measures promoting both increased availability and affordability without unduly burdening property owners.  
 
Our industry remains steadfastly committed to providing superior-quality accommodations for renters; however, fostering a regulatory environment conducive to investment and growth is equally vital. By concentrating on solutions that stimulate housing development and foster collaboration among stakeholders, we can collectively fashion a rental market benefiting both tenants and housing providers.  
 
In conclusion, while we appreciate Senators Brown, Warner, and Kaine et al.'s commitment to housing stability, we implore a more balanced approach that considers the delicate equilibrium between safeguarding tenant housing stability and ensuring a thriving, expanding rental housing market. We remain receptive to discussions and collaborative efforts aimed at finding comprehensive solutions addressing the concerns of all parties involved—ultimately cultivating a healthier housing ecosystem within our communities.