NLIHC and NLCHP Briefing Addresses Renters in Foreclosure

February 20, 2008 - (RealEstateRama) — In support of additional protections for renters and for expanded resources for rental housing, NLIHC and the National Law Center on Homelessness and Poverty held a joint briefing for Senate and House staff on February 20. The briefing, which was covered in its entirety by C-SPAN, reviewed the data on the need for housing affordable to those with the lowest incomes, the impact of the foreclosure crisis on renters and the current state of protections for renters in foreclosed properties at both the federal and state levels.

At the briefing NLIHC President Sheila noted that the administration’s recognition that homeowners should not pay more than 31% of their incomes toward a mortgage was a validation of the longstanding standard of housing affordability of 30% to one-third of income. She said that this concept should be carried over to the rental market, where 71% of those with extremely low incomes pay more than 50% of their income for rent. Fully funding the National Housing Trust Fund and providing additional vouchers will assist in closing this affordability gap.

NLCHP Executive Director Maria Foscarinis reviewed the findings from a joint NLCHP-NLIHC report about to be released of a state-by-state analysis of the maze of laws and practices governing the rights of renters whose landlords are foreclosed upon. Only in New Jersey and the District of Columbia does the tenancy of a renter survive foreclosure.

Crowley reviewed the federal protections for renters in foreclosure that have been enacted to date via the TARP (see article above). As a result of these provisions and a subsequent lawsuit, Fannie Mae and Freddie Mae now are offering occupants (renters and borrowers) of properties they take in foreclosure the option of month-to-month leases. Also, in the new installment of the Neighborhood Stabilization Program enacted as part of the economic recovery bill, new owners of properties purchased with NSP funds must honor existing leases or give current tenants 90 days notice to vacate.

NLIHC and NLCHP both call for federal protections of renters in foreclosure as will be provided in legislation about to be introduced by Senator John Kerry (D-MA) and Representative Keith Ellison (D-MN).

The briefing was held in the hearing room of the Senate Committee on Banking, Housing, and Urban Affairs courtesy of Committee Chairman Christopher Dodd (D-CT).

The briefing may be viewed at http://www.c-span.org/Watch/watch.aspx?MediaId=HP-R-15645

To get a copy of the slides used at the briefing, go to http://www.nlihc.org/doc/NLIHC%20Renters%20Briefing%202_20_2009.pdf

Tagged as: Briefing Addresses, foreclosure crisis, Homelessness, NLIHC, renters, TARP

 

 

 

USGBC - U.S. Green Building Council

HUD - U.S. Department of Housing and Urban Development

NAR - National Association of REALTOR

RealtyTrac

FHFA - Federal Housing Finance Agency

Freddie Mac

MBA - Mortgage Bankers Association