FHFA Reverses Key Biden Renters Bill of Rights Policy: What It Means for Property Owners
Bill Pulte, the newly confirmed director of the Federal Housing Finance Agency (FHFA), has rolled back a key decision from the Biden administration’s Renters Bill of Rights, specifically the requirements for a 30-day advance notice for lease termination in the multifamily properties that were funded by Freddie Mac and Fannie Mae.
Key Details:
Pulte rescinded the order that mandated a 30-day advance notice before an owner terminates the leases for properties on March 24, alongside Freddie Mac or Fannie Mae mortgages.
The idea behind the Biden administration’s framework was to aim at providing stronger renter protection. It was meant to standardize lease termination and practices, increasing rent.
Pulte came forward and justified the move by pointing out that many local and state governments had their own rules in place regarding lease termination notices and following grace periods. He pointed out that adding more layers of regulations would obviously increase the compliance for property owners and leaders.
The Big Picture:
The Renters Bill of Rights by the Biden administration, which was announced in January 2023, was based on a vision for housing that focuses on tenants' safety, quality, affordability, and accessibility. Among other things, the main goal was to push for clear leases, better renters' education, and to protect renters from eviction.
In a follow-up that happened in July 2024, FHFA under previous leadership had planned to implement certain leasing practices across properties that were funded by Fannie Mae and Freddie Mac.
However, following the change in leadership at FHFA, that plan is now a thing of the past. Pulte, who took the helm in March, immediately delayed the implementation of these changes and ultimately scrapped them altogether. This decision came after the Biden administration had given FHFA the go-ahead to explore actions that would better protect renters and limit excessive rent increases.
Pulte's leadership has been a significant shift. Since his appointment, he’s moved quickly, making waves at both Fannie Mae and Freddie Mac. He replaced several board members at Freddie Mac and Fannie Mae, dismissed Fannie Mae CEO Diana Reid, and placed numerous staffers on administrative leave.
What’s Next:
The Biden administration might not be done with this push for more renter protections. The White House is looking deep into an executive order to further dig into its potential impact of privatizing Fannie Mae and Freddie Mac. While that’s still in the works, the future of federal housing policy under Pulte’s leadership is shaping up to be far less tenant-friendly than initially planned.
While the Biden Renters Bill of Rights may have lofty goals, the changes under the new leadership signal a major shift. Moving ahead, the housing policy will focus on balancing the interests of both renters and property owners with equal rights.
