Biden Administration to Consider Imposing Federal Tenant Protection Measures

Biden Administration to Consider Imposing Federal Tenant Protection Measures

The Biden-Harris Administration which builds off the White House Blueprint for a Renters Bill of Rights is considering proposals to impose additional renter protections under Federal law, including:

• Ensuring all renters have an opportunity to address incorrect tenant screening reports;
• Providing new funding to support tenant organizing efforts and
• Ensuring that renters are given fair notice in advance of eviction.

The White House Blueprint for a Renters Bill of Rights (the “Blueprint”) is intended to support the development of policies and practices that promote fairness for Americans living in rental housing. The Blueprint outlines principles and best practices at the federal, state and local level that would strengthen tenant protections and increase fairness in the rental market. The Blueprint comprises five key principles that the Administration believes should guide the development of policies and practices across the country. Specifically, the Administration is focused on providing all renters access to: (i) Safe, quality, accessible and affordable housing; (ii) Clear and fair leases; (iii) Education, enforcement, and enhancement of renter rights; (iv) The right to organize; and (v) Eviction prevention, diversion, and relief.

Fair Tenant Screening Practices

To ensure fair tenant screening practices, the U.S. Department of Housing and Urban Development (HUD), the U.S. Department of Agriculture, the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC) and the Federal Housing Financing Agency (FHFA) released guidance or best practices to remind housing providers that when they deny housing to an applicant using information obtained from a consumer report, like a criminal background check, the Fair Credit Reporting Act requires landlords to communicate their decision to the tenant and share how the tenant can contact the company that produced the consumer report. This obligation, known as the “adverse action notice” requirement, applies to any action against a tenant based on information in the consumer report, including denying a rental application, increasing the rent charged or security deposit, or requiring a co-signer. According to the agencies, providing this information in writing is the best way to ensure that renters get the information they need, and for housing providers to demonstrate they are meeting their legal obligations.

Since creating the Blueprint, the CFPB and FTC, both independent agencies, issued a Request for Information seeking public comment on how background screening may shut renters out of housing. FHFA, also in independent agency, initiated a process to solicit feedback on ways to advance renter protections in its financing programs. 

Tenant Organizing Efforts

As part of the effort to support renter organizing efforts, HUD announced $10 million in new funding for education and outreach to enable renters who live in HUD’s project based rental assistance housing to obtain training and technical assistance and engage with housing providers on efforts to sustain safe, decent, and affordable housing.

Fair Notice in Advance of Eviction

HUD also committed to issuing a notice of proposed rulemaking that would require housing providers to notify tenants who live in public housing or properties with project-based rental assistance in writing at least 30 days prior to lease termination for nonpayment of rent. Renters who live in public housing and properties with project-based rental assistance are entitled to receive 30-day notice in cases of non-payment of rent at present. However, if finalized, the proposed rule would permanently memorialize this requirement in HUD’s regulations. Recall that we are separately engaged in an advocacy campaign to repeal the CARES Act 30-day notice-to-vacate requirement for all federally backed properties.

Housing Supply and Other Initiatives

HUD announced two actions to increase the supply of affordable housing: (i) $85 million innovative competitive grants for communities to identify and remove barriers to affordable housing production and preservation, and (ii) New tools for public housing authorities and multifamily housing owners participating in the Rental Assistance Demonstration (RAD) to repair and build affordable housing.

The White House has prioritized engagement with tenants, tenant organizers and advocacy organizations, including in the creation of its Blueprint. These engagements ensure renter voice and expertise inform the government’s understanding of challenges that exist in the rental market, and that solutions increase fairness. Recently, HUD hosted the National Conversation at The Community Table, to hear directly from hundreds of renters on federal policy.

In addition, the White House announced new actions to address unfair and hidden fees in the rental housing market. Congressional action could bolster these efforts by codifying renters’ rights into law, and to passing the President’s budget proposal, which includes apparent investments to lower housing cost and protect renters, expand housing supply and affordability, including funding for eviction prevention.