{"id":8388,"date":"2023-08-11T15:07:09","date_gmt":"2023-08-11T20:07:09","guid":{"rendered":"https:\/\/nwfl4sale.com\/coalition-to-fhfa-rent-control-wont-work\/"},"modified":"2023-08-11T15:07:09","modified_gmt":"2023-08-11T20:07:09","slug":"coalition-to-fhfa-rent-control-wont-work","status":"publish","type":"post","link":"https:\/\/nwfl4sale.com\/coalition-to-fhfa-rent-control-wont-work\/","title":{"rendered":"Coalition to FHFA: Rent Control Won\u2019t Work"},"content":{"rendered":"

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By Kerry Smith<\/div><\/div>\n
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An 18-association group that includes NAR sent a letter to federal housing regulators, saying that rent control makes affordable housing issues worse \u2013 not better.<\/span><\/span><\/p>\n<\/div>\n

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WASHINGTON \u2013 Eighteen associations representing housing providers, lenders and residents sent a letter<\/a> to Federal Housing Finance Agency (FHFA) Director Sandra Thompson. The letter offered a warning that some policies under consideration could backfire and make the nation\u2019s affordable housing crisis worse rather than better.<\/span><\/span><\/p>\n

The coalition, which includes the National Association of Realtors\u00ae (NAR), wrote that mandatory rent control and rent stabilization policies will increase rents, reduce the capital needed to boost the supply of housing, and ultimately hurt current and future renters.<\/span><\/span><\/p>\n

FHFA is currently considering changes that could impact multifamily housing backed by Fannie Mae and Freddie Mac. But instead of rent control mandates that \u201cexacerbate the housing affordability crisis,\u201d the group suggested voluntary incentives within Fannie Mae and Freddie Mac programs, saying those work best to create and expand the nation\u2019s affordable housing supply.<\/span><\/span><\/p>\n

\u201cResearch has proven repeatedly that mandatory rent control is a failed policy, which does nothing to alleviate the root causes of housing affordability issues \u2013 namely the fact that our nation\u2019s housing supply has not kept pace with the needs of our growing population,\u201d the coalition wrote. \u201cIt disincentivizes multifamily housing investments.\u201d<\/span><\/span><\/p>\n

The coalition says one of Freddie Mac and Fannie Mae\u2019s goals is to create more housing opportunities for low- and moderate-income residents, but rent stabilization rules are \u201ccontrary\u201d to that goal because they entice current renters to stay longer at the expense of new renters who will face fewer and more expensive options.<\/span><\/span><\/p>\n

While the letter says the coalition shares \u201cFHFA\u2019s commitment to addressing the affordable housing crisis,\u201d it advocates for voluntary programs supported by the federal government, including the Low-Income Housing Tax Credit (LIHTC), expansion of Section 8 programs,\u201d and Fannie Mae\/Freddie Mac programs that provide financial resources for developers creating affordable units.<\/span><\/span><\/p>\n

\u201cImplementing failed policies such as mandatory rent control will create instability in an already challenged market,\u201d the group concludes.<\/span><\/span><\/p>\n

Coalition members signing the letter<\/span><\/span><\/h3>\n