APARTMENT ADVOCATE
NATIONAL APARTMENT ASSOCIATION /
NATIONAL MULTIFAMILY HOUSING COUNCIL
2019 State of Play: NAA’s Take on Policy Issue Trends
H
ousing affordability challenges
will be the driving force behind
legislative and regulatory activity
affecting the apartment industry, at all levels
of government. Particularly in the nation’s
cities, policymakers are looking for quick
fixes to provide relief for low to moderate-
income renters while putting increased
pressure on apartment owners to shoulder
the resulting financial and operational
impacts. There are several areas of concern
that may catch fire as they relate to housing
affordability concerns. Also included are
some trending issues that have implications
from an operational perspective.
EVICTION
Eviction policy has come under intense
media scrutiny as housing affordability
becomes a more pressing issue in cities and
states across the country. While the eviction
process has long since been a focus of
tenants’ rights activists and state and local
policymakers, it has witnessed renewed
fervor in light of the popularity of Matthew
Desmond’s book Evicted and his subsequent
research at Princeton, as part of the Eviction
Lab project.
measures that encourage the development
of affordable housing, or mandatory
programs that stipulate a percentage of
units be set aside and fixed with below
market rents as a condition of approval for
new development. Increasingly, the latter is
being used by state and local governments
to increase affordable housing in
communities experiencing high rates of
growth. While well-intentioned, these
policies result in the opposite outcome of
their intended aim. Inclusionary zoning
is a form of rent control that stymies
development and leads to overall price
increases. These mandates act as a tax
on housing construction, which increases
building costs and reduces housing supply.
41 inclusionary zoning bills were
introduced by 16 states in 2018. While
Tennessee successfully adopted a state
preemption law to prevent localities
from mandating inclusionary zoning,
Louisiana’s governor vetoed similar
legislation last year. In 2019, NAA expects
a similar or increased activity at the state
and local level in 2019.
RENT CONTROL
Rent control policies are government-
enforced price controls that place
limitations on the rent an apartment
owner may charge in market rate rental
housing. Rent control laws also typically
result in a host of additional regulatory
burdens on apartment owners and
operators, including restrictions on rent
increases, required approval for special
assessments to cover repairs or major
capital improvements, limits on vacancy
decontrol and just cause eviction measures.
They distort the housing market by acting
as a deterrent and disincentive to develop
rental housing, and rent control measures
discourage owners from re-investing in
their properties through maintenance and
rehabilitation.
Last year 117 rent control bills were
introduced in states and localities. 17 of
those became law. On a related note, while
the apartment industry saw a significant
win in the defeat of California’s ballot
measure to repeal the Costa Hawkins
Federal, state and local policymakers
are focused on resident protections that seal
eviction court records, otherwise remove
barriers to securing housing or keep renters
in place by making the eviction process
more difficult. Whether it be restrictions
on eviction screening or implementing just
cause eviction protections, these policies have
significant consequences for the industry.
Last year 411 eviction-related bills
were introduced in 42 states, with 72 bills
becoming law. A similar bill volume is
expected in 2019..
INCLUSIONARY ZONING
Adopted by over 500 localities across
the country, inclusionary zoning policies
typically fall into two categories: voluntary
38 | TRENDS
MARCH 2019
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