A group of U.S. Congress members urged the Federal Housing Finance Agency to direct Fannie Mae and Freddie Mac (the Enterprises) to establish a clearer process to report maintenance, safety and other issues at Enterprises properties.
U.S. Sen. Sherrod Brown (D-OH), the chair of the Senate Committee on Banking, Housing, and Urban Affairs, joined Sens. Elizabeth Warren (D-MA), Jack Reed (D-RI), Catherine Cortez Masto (D-NV), John Fetterman (D-PA), Martin Heinrich (D-NM), and Alex Padilla (D-CA) in providing a way for renters and community leaders to resolve housing issues with the Enterprises.
The law makers said Fannie Mae and Freddie Mac are currently financing more than 40 percent of the multifamily mortgages across the country, and are supporting affordable housing options. But local leaders and renters have said that maintenance issues and other concerns may mean the owners of the properties may not be adhering to the terms of their financing. Local leaders said they and residents do not have a clear process to report issues to either the Enterprises or to the FHFA in an attempt to get them resolved.
“Local officials and residents are the canaries in the coal mine. They live in these homes. They see them every day. They are the best equipped to spot issues early on and help to have them addressed before a small problem becomes a critical issue. Unfortunately, neither the Enterprises nor the Federal Housing Finance Agency (FHFA) have a process for residents and community members to elevate issues and get those issues resolved,” the senators said in a letter to the FHFA. “Failure to initiate and maintain a process to receive and respond to resident and community concerns about rental properties backed by the Enterprises undermines both their mission and safety and soundness.”
The senators asked the FHFA to require the Enterprises to establish reporting methods so issues can be resolved and that the FHFA develop a process for monitoring the Enterprises’ response to any resulting complaints.