Request for Input (RFI) on tenant protections at multifamily properties with mortgages backed by Fannie Mae and Freddie Mac (the “Enterprises”)

The Private Equity Stakeholder Project (PESP) argues that private equity ownership of rental housing increases risks to tenants, citing examples of steep rent hikes, inadequate maintenance, and abusive eviction practices by firms like CIM Group, The Blackstone Group, and Progress Residential. PESP recommends that the FHFA establish a public rental registry for beneficial owners, cap annual rent increases at 3%, mandate habitability standards, and codify tenant rights, including just-cause eviction and the right to organize.

• Private equity firms have a significant presence in the U.S. rental market, owning over 1 million apartment units (approximately 3.6% of nationwide units) as of June 2022. Large private equity firms were involved in 85% of Freddie Mac's 20 largest deals for apartment complex purchases by a single borrower in 2022.
• The CIM Group, using a $346 million Freddie Mac loan, is accused of predatory practices at Southern Towers in Northern Virginia, including filing over 500 eviction notices against 255 households during a federal moratorium, imposing rent increases up to 14.8%, and failing to resolve mold and pest issues.
• The Blackstone Group, the largest U.S. landlord with over 280,000 units, is alleged to use evictions to bypass California's 10% annual rent cap for existing tenants to charge significantly higher rents to new tenants. For example, at the Fashion Hills complex in San Diego, new 1-bedroom units were listed at 43% and 2-bedroom units at 64% above the September 2021 average.
• Progress Residential and Front Yard Residential (owned by Pretium Partners) have been linked to severe maintenance neglect and abusive pandemic-era evictions. In Minneapolis, the city took the company to court nine times between June 2021 and September 2022 for unresolved violations, and the Minnesota Attorney General alleged the company left tenants in uninhabitable homes.
• PESP recommends the FHFA create a publicly searchable rental registry that identifies the beneficial owners of properties with Enterprise-backed mortgages to overcome the lack of transparency caused by complex LLC and REIT structures.
• To protect tenants, PESP proposes that the FHFA prohibit rent increases exceeding 3% over any 12-month period for Enterprise-backed mortgages and establish habitability standards that specifically penalize the presence of unhealthy mold and lack of air conditioning.
• PESP advocates for the codification of tenant rights for Enterprise-financed properties, including the right to organize without retaliation, 'just-cause' eviction protections, the use of a fair lease agreement template, and the creation of an Office of Tenant Protections to investigate complaints.

APA

Private Equity Stakeholder Project (2023). Request for Input (RFI) on tenant protections at multifamily properties with mortgages backed by Fannie Mae and Freddie Mac (the “Enterprises”). https://pestakeholder.org/wp-content/uploads/2023/09/7-31-23-FHFA-Tenant-Protections-Comment-Letter-PESP.pdf

Chicago

Private Equity Stakeholder Project. Request for Input (RFI) on tenant protections at multifamily properties with mortgages backed by Fannie Mae and Freddie Mac (the “Enterprises”). 2023. https://pestakeholder.org/wp-content/uploads/2023/09/7-31-23-FHFA-Tenant-Protections-Comment-Letter-PESP.pdf.

Wikipedia

{{cite press release |author=Private Equity Stakeholder Project |title=Request for Input (RFI) on tenant protections at multifamily properties with mortgages backed by Fannie Mae and Freddie Mac (the “Enterprises”) |date=31 July 2023 |url=https://pestakeholder.org/wp-content/uploads/2023/09/7-31-23-FHFA-Tenant-Protections-Comment-Letter-PESP.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{privateequitystakeholderproject2023request, author = {{Private Equity Stakeholder Project}}, title = {{Request for Input (RFI) on tenant protections at multifamily properties with mortgages backed by Fannie Mae and Freddie Mac (the “Enterprises”) }}, publisher = {Private Equity Stakeholder Project}, year = {2023}, month = jul, url = {https://pestakeholder.org/wp-content/uploads/2023/09/7-31-23-FHFA-Tenant-Protections-Comment-Letter-PESP.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }