U.S. Department of Housing and Urban Development (HUD) Federal Housing Finance Agency (FHFA) U.S. Department of the Treasury

• 24 CFR § 92.252 — Rent limitations under the HOME program • 12 CFR § 1282.1 et seq. — Enterprise Duty to Serve Underserved Markets (Fannie Mae & Freddie Mac housing goals) • Treasury/IRS Low-Income Housing Tax Credit (LIHTC) policy — 26 CFR § 1.42-10 and § 1.42-12 Specifically: rescind de facto exemptions and weak affordability metrics that allow properties benefiting from federal subsidies, financing, or guarantees to raise rents aggressively and circumvent local or national affordability goals.

Rental Affordability Exemptions for Federally Supported Housing Programs

Millions of units built or preserved with federal funds—HOME, LIHTC, or backed by Fannie/Freddie—have affordability windows that expire, rent limits that escalate regardless of local incomes, or enforcement gaps that allow landlords to jack up rents once a program term ends. Rescinding deregulated pricing carveouts and establishing a consistent affordability framework would protect tenants from eviction and help stabilize the national housing market.

HUD: 451 7th Street SW, Washington, DC 20410 FHFA: 400 7th Street SW, Washington, DC 20219 Treasury: 1500 Pennsylvania Avenue NW, Washington, DC 20220

HUD: (202) 708-1112 · affordablehousing@hud.gov FHFA: (202) 649-3800 · multifamilypolicy@fhfa.gov Treasury: (202) 622-2000 · lihtc-policy@treasury.gov

Over the past 30 years, federal policy has drifted toward landlord-friendly pricing norms—even in subsidized or federally financed housing. LIHTC units can increase rents based on area median income (AMI), even if tenant incomes lag. HOME properties face limited enforcement after affordability periods expire. Fannie and Freddie have financed hundreds of thousands of units with no long-term rent controls. These programs often default to “market-based” pricing in areas where the market itself is exclusionary or predatory.

Federal housing programs should not underwrite eviction engines. By allowing subsidized or supported units to operate with minimal rent accountability, the government enables housing instability, neighborhood displacement, and cycles of homelessness. Rescinding the deregulated pricing defaults in these CFR provisions would establish a floor for affordability and a ceiling for unchecked rent increases—especially in publicly assisted or guaranteed properties.

• 24 CFR § 92.252 will be amended to require permanent affordability standards for HOME-assisted units or mandatory renewals tied to federal reinvestment. • 12 CFR § 1282 will require that GSE-financed multifamily properties adopt enforceable affordability agreements with annual rent caps and just cause eviction protections. • 26 CFR § 1.42-10 / § 1.42-12 will be updated to prevent automatic rent increases in LIHTC units without proportional income growth and to require opt-in to local rent control ordinances where applicable.

Scott Turner

Secretary of Housing and Urban Development