The Federal Housing Finance Agency (FHFA) issued a request for input (RFI) on tenant protections at multifamily properties backed by Fannie Mae and Freddie Mac (the Enterprises). FHFA Director Sandra Thompson said the agency is looking for help in identifying nationwide challenges impacting underserved communities.

Through this RFI, the FHFA is looking to gather perspectives from tenants and tenant advocates, nonprofits, lenders, multifamily borrowers/property owners, housing providers, and other industry participants, as well as improve data collection to better quantify the size and scope of challenges that tenants experience at multifamily properties.

“The Enterprises have a responsibility to not only ensure liquidity is available for affordable rental housing, but also to address challenges faced by tenants and property owners in the multifamily housing market,” Thompson said in a release. 

Part of the Enterprises’ charter acts require them to assess their underwriting standards, policies, and business practices and their effect on low- and moderate- income families, including whether there are racial disparities that need to be addressed. Because of their role as secondary market participants, Fannie Mae and Freddie Mac have a public mission to support the availability of safe, decent, and affordable housing, the agency stated.

Interested parties may submit their comments by July 31. Some of the questions the agency asked to be addressed are:

• How should the Enterprises protect tenants in multifamily rental housing? What role should the Enterprises play in providing tenant protections at Enterprise-backed multifamily properties?
• What minimum tenant protections should FHFA consider at Enterprise-backed multifamily properties? What are the benefits of each tenant protection, and what associated risks or challenges might the Enterprises face during implementation? Please provide specific examples as appropriate.
• Should landlords provide a written notice to prospective tenants that their lease application has been rejected, including a description of the reasons for rejection? What are the potential benefits and challenges of delivering such notices? If a written notice is provided, what information should it include?
• What potential benefits or risks to the Enterprises’ lenders, servicers, and multifamily borrowers/property owners should the Enterprises consider when assessing each Enterprise’s role in addressing tenant protections?
• How should the Enterprises evaluate the impacts of multifamily tenant protections on their portfolios, on the supply of housing, and on renters?