Source: NAA/NMHC Joint Legislative Program, Monday 5/18/09
Pending Legislation Could Prematurely Force Apartments into Foreclosure, Enact Unnecessarily Alarming Renter Notification Requirements
On May 7, the U.S. House of Representatives approved mortgage reform legislation (H.R. 1728) that includes two amendments that are very onerous for apartment firms.
NAA/NMHC are actively opposing these provisions, and we need your help.
Background
The legislation would allow the government to intervene when an apartment property is delinquent, at risk of default, at risk of disinvestment or in foreclosure. Importantly, the bill does not target any specific level of mortgage distress, property condition or occupancy level, but gives the government latitude as to when it can intervene based on undefined circumstances.
Please take a moment to contact your Representative and your Senators to make your opposition known to this back-door effort to seize market-rate apartments and convert them to affordable housing. We also need you to inform them that the renter notification provisions in the legislation, which require resident notification any time a property is in default, even if it is a non-monetary default, are ill-advised, unnecessary given existing state laws protect renters in an apartment foreclosure and could actually trigger a foreclosure or create financial stress on a property by discouraging existing residents from renewing their leases and prospective residents from signing a lease.
Take Action
Additional information on the legislation and a sample letter you can send to your elected officials are available here.
We are also asking members schedule to a meeting with their Representative or Senators during the Memorial Day Recess scheduled from May 25-31 or as soon as possible in their district office to urge them to oppose these two amendments in any final legislation. We have also developed an Issue Fact Sheet that you can share with your elected officials.
If you have questions, please contact Lisa Blackwell, NAA/NMHC's Vice President of Housing Policy, at 202/974-2365 or lblackwell@nmhc.org.
