Striking Tenants Demand Rent Caps and Other Protections

October 29, 2024

Tenants in
two Kansas City apartment buildings with Fannie Mae-backed loans are withholding rent, demanding repairs and rent control.

  • Around 200 tenants across two properties, Independence Towers and Quality Hill Towers, kicked off rent strikes on October 1.
  • Tenants are demanding that the Federal Housing Finance Agency (FHFA) address substandard living conditions and are requesting a 3% rent cap on Fannie Mae and Freddie Mac-backed properties.

Why It Matters: The rent strikes are part of a broader movement spearheaded by the Tenant Union Federation, with similar strikes planned in several other states. This Federation aims to pressure federal regulators to address the national housing affordability crisis.

As reported by Politico, FHFA did not address directly the demand by the unions behind the strikes for a rent cap at properties with loans backed by the GSEs.

However, as CREFC reported on July 12, FHFA introduced in July new tenant protections, including grace periods for rent payments and required notice for rent increases and lease expirations, as evidence of its commitment to tenant rights. Siobhan Kelly, associate director of the Office of Multifamily Analytics and Policy at the FHFA, stated:

“Traditionally FHFA is not an enforcement agency, so the fact that we’re making sure that borrowers do have to comply with these [tenant protections] is precedent-setting — it’s a step down to the tenant level that the agency has never done before.” 

Yes, but: Politico reports that local politicians are expressing support for the tenants. Congressman Emanuel Cleaver (D-MO) continues to urge Fannie Mae and the FHFA to address tenant concerns and improve living conditions at Independence Towers and Quality Hill Towers.

The U.S. housing crisis has become a key bipartisan focus area, but FHFA’s specific role will depend on who wins the White House. We expect an increasing focus on tenant protections under a Democratic administration.

As FHFA stated in the July press release and blog that accompanied the announcement of tenant protections:

“FHFA and the Enterprises will continue to evaluate options for codifying additional tenant protections that advance sustainable housing in a manner that reflects the needs of both tenants and housing providers.”

  • CREFC meets with FHFA on a quarterly basis to discuss developments in the multifamily sector, including relevant data trends and policy concerns.
  • We will continue to carefully monitor and share policy developments, particularly in light of the upcoming elections.
Contact Sairah Burki (sburki@crefc.org) with questions.
 

Contact 

Sairah Burki
Managing Director, Head of Regulatory
Affairs & Sustainability
703.201.4294
sburki@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2024 CRE Finance Council. All rights reserved.

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