which would almost certainly lead to new laws being adopted in Boston , Cambridge and Somerville , among others .
The Chicagoland Apartment Association is on the forefront of industry advocacy through a coalition known as Supporting Housing Affordability , Progress and Equality ( SHAPE Illinois ). This group has beaten back many proposals to institute rent control in Chicago and Illinois . Recently , they utilized NAA grant funding for a public education campaign and the creation of an advocacy video warning of the dangers of rent control .
NAA ’ s state and local affiliate partners are working tirelessly to beat back rent control in legislative sessions , with strong support from NAA and its Housing Affordability Grant Program . However , there is still work to do . NAA is working in lockstep with our affiliates in priority states to ensure that recent rent control bills do not move any further . For those places where a ballot initiative is on the table , we are working with affiliate leadership to educate the public on the destructive nature of capping rents .
Building upon NAA ’ s affiliate support , NAA has engaged in a new partnership with national , real estate trade associations , such as the National Multifamily Housing Council and Mortgage Bankers Association : the Housing Solutions Coalition . By recognizing that rent control is a detriment to the entire housing market , the coalition is prepared to fight its adoption and instead , urge passage or responsible and sustainable pro-housing policies .
At the federal level , the Biden Administration continues to explore housing policy changes aligning with the White House Blueprint for a Renters Bill of Rights . NAA continues its federal advocacy efforts to impress upon the Administration ( including the Federal Housing Finance Agency which is considering forwardfacing rent control on enterprise-backed properties to prevent “ egregious rent increases ”) the disastrous impacts of rent control . Because of NAA ’ s affiliate partners and members , over 3000 industry letters were sent to FHFA as part of its public comment process , urging them to recognize that federalizing tenant protections is incredibly problematic for the rental housing industry and adoption of the rent control would encourage housing providers to refinance away from federal loan programs .
‘ ANTI-PRICE GOUGING ’ IS THE NEW RENT CONTROL
A Lesser-Known Form Of Rent Control Gains Traction Nationwide .
This session , the Colorado General Assembly is considering House Bill 24- 1259 , which would require a lesser-known form of rent control that is gaining traction in state legislatures across the nation : Government policies that limit rents during a declared state of emergency or natural disaster .
Proponents are experiencing success messaging these rent control policies as “ anti-price gouging ” and are gaining traction in places that historically would not seriously consider rent regulations . These policies are intended to be temporary during an emergency but in practice , constantly place additional burdens on housing providers in jurisdictions where triggering events frequently occur throughout the year . Currently , 35 states have legislation that protects against “ price gouging ” while 33 states preempt rent control . This overlap indicates that these supposedly temporary measures are often the most politically expedient way to institute a rent regulation regime .
In its original form , this bill would require housing providers to cap rent increases following a federal or state declared emergency . The rent increase limitation would apply to declarations that resulted in a material decrease in residential housing units and only in specific geographic areas identified in the declaration . Rent caps would be enforced when a disaster declaration begins and continue for two years after the date of the initial disaster , regardless of whether the declaration has ended or the issue has been resolved .
The bill also creates confusing and complicated compliance responsibilities for housing providers according to whether the housing in question was or was not on the market immediately following the disaster . Noncompliance with this law would be classified as a deceptive trade practice and legal action could be taken by the state attorney general , district attorney or an aggrieved party .
Rather than adopting failed policies like rent control that are widely recognized to exacerbate the affordable housing shortage and reduce the quality of apartment homes , the Colorado Apartment Association ( CAA ) is working diligently to reduce the impacts of these bad policies on rental housing providers and instead encourage the General Assembly to focus on responsible and sustainable pro-housing policies .
Alongside our affiliate partners like the CAA , the National Apartment Association opposes rent control in all its forms and works with our partners to support their state and local advocacy efforts to protect the rental housing industry .