The Washington Report

On Tuesday, July 22, NAR and a coalition of housing provider industry partners (including the National Multifamily Housing Council, the National Apartment Association, IREM, the National Association of Homebuilders, and the Mortgage Bankers Association) sent a letter to the White House and Congress expressing strong opposition to the President’s announced rent cap proposal.  The proposal – which requires Congressional action – would take away the accelerated depreciation tax provision from housing providers with 50 or more units who raise rents by more than 5% per year.  It would be in place for two years and only apply to existing properties, not new builds. 

NAR and its coalition partners stress that rent caps will absolutely not solve the issue of the shortage of affordable housing.  They jeopardize the financial solvency of rental communities, lower the quality of housing stock, limit housing choices, and disincentivize new development.  Economists from across the political spectrum agree – rent control ultimately worsens challenges to affordable housing in communities, and ignores the real reasons those challenges exist.  Instead of focusing on this failed policy solution, the Administration should support federal programs that encourage new investment into our nation’s rental housing stock and push for states and localities to remove barriers to new development. 

While the proposed policy is not expected to get any traction in the 118th Congress, NAR will continue to monitor this issue closely and keep our voice heard by the Administration and policymakers.  Additionally, NAR has resources for state and local associations facing rent control proposals in their communities to help them push against these damaging policies and for real solutions to the nation’s housing supply and affordability crisis.  Additionally, NAR is a founding member of the Housing Solutions Coalition, which is dedicated to finding real solutions to housing affordability challenges and providing information and resources to oppose misguided rent control campaigns.  

Read the Housing Provider Coalition Letter

White House Rent Cap Fact Sheet

NAR Advocacy Rent Control Toolkit

Housing Solutions Coalition

On July 15, 2024, HUD charged an appraiser, an appraisal management company, and a lender with housing discrimination for allegedly issuing a biased appraisal and then denying a refinance loan application in Denver, Colorado.

In the Charge of Discrimination (“the Charge”), HUD alleges that the appraiser prepared an insupportably low appraisal of a duplex owned by a Black woman in a predominantly White area. HUD also cited two previously existing appraisals of the same property that were higher and had consistently increased in value, yet the appraisal the defendant prepared was dramatically lower, despite the Denver market experiencing sizable growth in home values at that time.

HUD asserts that the low appraisal contained numerous inaccuracies and unsupportable methodological choices (such as relying on comparable properties in neighborhoods with greater Black populations and excluding potential comparable properties in neighborhoods with greater White populations) that not only artificially lowered the appraised value but deviated from the appraiser’s own methodology and findings about the relevant neighborhood in appraising similar, nearby properties with White owners. The Charge also states that neither the appraisal management company nor the lender caught any of these inaccuracies upon review and that the mortgage company dismissed the complainant's concern that the extent of the inaccuracies coupled with the low appraised value could indicate discrimination.

In March of 2023, NAR wrote to HUD requesting that it completes its review of cases alleging discrimination in valuation with due haste so NAR could use the guidance to create best practices, training and education. This is the first case HUD has ruled on, and we look forward to further decisions and guidance as we move forward.

Review HUD’s Press Release

On July 11, 2024, the Department of Housing and Urban Development (HUD) announced a Conciliation Agreement with The Appraisal Foundation (TAF). TAF is the private organization that sets qualifications and standards for the appraisal profession. HUD’s former Secretary Marcia Fudge filed a complaint against TAF alleging that its standards for training and qualification to enter the profession precluded access to communities of color. In turn, the resultant low share of Black and Latino appraisers was allegedly linked to higher rates of low appraisals in communities of color.

HUD did not issue findings against TAF or evidence of violations of the law or the Fair Housing Act. However, under the agreement, TAF will establish a $1.22 million scholarship fund to cover the costs of aspiring appraisers to utilize the Practical Applications of Real Estate Appraisal (PAREA) program. PAREA is a virtual program that enables candidates to obtain on-the-job experience required by TAF that can be hard to come by without industry connections. In addition, TAF agreed to market the PAREA program to communities of color and to collaborate with state licensing organizations to facilitate adoption of the program and its PAREA credit towards experience requirements.

NAR was one of the original organizations to sponsor TAF’s licensing and standards setting function for the industry in the early 1990s. That sponsorship entailed annual financial support for TAF in exchange for appointments on TAF’s Board of Trustees and Advisory Committee. Some fair housing and consumer groups questioned that relationship as potential “pay-for-play”, and, in the spring of 2024, NAR’s Executive Committee approved a motion of more general support for TAF’s licensing and standards setting function.

HUD’s Press Release

TAF’s Press Release