Current Problems & Policy Responses 8

Problem: Following the Great Recession of 2007-2009, Fannie Mae and Freddie Mac sold large volumes of repossessed homes to hedge funds and private equity firms. 9 Many of these institutional investors converted the homes into high-priced rentals. This trend has accelerated in recent years, with institutional investors owning more than 10% of units in the rental market in more than a dozen large U.S. housing markets in 2022. This reduces the supply and drives up the cost of houses, concentrates ownership in rental markets, and decreases the availability of lower-cost rental units. All of which contribute to the housing affordability crisis. 

Solution:Use existing federal housing finance tools to discourage concentrated housing market ownership by institutional investors in vulnerable areas while protecting first-time buyers, small landlords, and mission-driven housing providers. Specifically, a future administration mustdirect Fannie Mae and Freddie Mac to impose higher fees, tax disincentives, or stricter capital requirements on large-scale investors, especially those operating in vulnerable neighborhoods, to encourage competitive housing markets.

Fannie Mae and Freddie Mac, which back about 70% of U.S. mortgages under the oversight of the Federal Housing Finance Agency (FHFA) already differentiate loan fees and reserve requirements based on borrower type (first-time buyers, investors, or second-home purchasers). 10 To counter bulk home-buying by institutional investors, especially in neighborhoods where such practices are displacing residents, the President must leverage these authorities to install an FHFA director 11 who will direct Fannie and Freddie to impose these limitations to disincentivize institutional investor market concentration, particularly in vulnerable areas. This designation must include those regions currently defined as HUD-FHA ‘revitalization areas,’ where existing policies target expanded homeownership opportunities. HUD must also work with the Federal Trade Commission and the Department of Justice to identify communities with existing or at risk of high concentrations of property ownership or anti-competitive practices in the rental market. Exemptions can be provided to nonprofits, community land trusts, and public agencies working to expand affordable housing in these areas. 12

Avoiding market concentration will also require more transparency within property ownership and structures, which can be achieved by directing the Treasury Secretary to expand beneficial ownership disclosure to cover domestic entities, and collecting property ownership data, including parent companies in rental registries. 

Problem:Staff cuts to the Federal Housing Agency, 13 and the rescission of numerous Housing and Urban Development policies 14 have removed policies and programs that serve those most impacted by and at-risk of inadequate housing. These rescinded policies include requirements that communities in receipt of housing grants identify and address patterns of segregation, outreach to at-risk communities about housing opportunities and related support programs, and technical assistance to state and local agencies seeking to expand fair housing, among many others.

Policy Response:  The administration must instruct HUD to review all policies that were rescinded to identify those to be reinstated and expanded to support the goals of adequate housing for all. This effort will be coordinated with the work of the Interagency Council on Affordable Housing proposed below, to identify opportunities to improve policies and their more streamlined operation and oversight to serve both those looking to build and manage housing, and the increased efficiency of the oversight agencies.  

Problem: Unbearable housing cost burden. In 2024, more than half of workers earned less than the $26.74 per hour required to afford rent for a one-bedroom apartment without spending more than a third of their income. Four out of 10 low-income individuals are either homeless or spend more than half of their income on rent. 15

Policy Response:  Expand and guarantee sustainable funding for rental assistance through the Housing Choice Voucher Program to serve every eligible household. 16 Lack of funding and the supply shortage mean many households eligible for rental assistance don’t receive it.  17

Problem: Federal Housing Policy prioritizes homeowners over renters. Over 75 percent of federal housing dollars support homeownership, with most going to the 20% with the highest income, and over 50% going to households with incomes over $100,000. 18 19 Renters are disadvantaged, yet often face more difficult housing challenges.

Policy Response: Introduce Congressional legislation to create a federally-funded, state-administered renters’ tax credit. 20 Homeowners benefit from a mortgage income tax deduction. Renters must as well. The federal government must allocate to states a capped amount of credits determined by a population-based formula, as is currently done with the federal Low Income Housing Tax Credit. 21 This will provide the credit at a limited cost, utilize federal income eligibility to target the lowest income households, and allow states to deliver the credits within their policy preferences, such as targeting families at risk of homelessness, veterans, seniors, and people with disabilities. A federal cap of $5 billion worth of credits will fund state Renters Tax Credits to serve approximately 1.2 million families.  22

Problem: Inadequate housing supply. We are facing a shortage of approximately 7.3 million affordable housing units for families at the lowest income levels. There is currently NO congressional district with sufficient affordable housing to meet demand. 23 The shortage is impacting urban, suburban, and rural areas. 24

Policy Response: Congress must pass the Affordable Housing Credit Improvement Act  to make critical reforms tothe Low-Income Housing Tax Credit 25 The bi-partisan 26 AHCIA increases the number of tax credits available to states by 50% for a period of two years to address critical housing supply needs, as well as making permanent an increase to the program made in 2018. 27 The Act targets those most at risk of homelessness via additional tax credits to housing developers who designate at least 20% of apartments in LIHTC-financed developments to tenants with extremely low incomes 28 through an expansion of the tax credit basis (determination of the costs eligible for calculating the credit). Increasing the tax credit basis by 50% will make it more financially feasible for developers to build apartments at rents that are affordable to households with the greatest needs. 29 HUD shall also expand the designation of ‘Difficult to Develop” to rural areas, making them eligible for increased subsidies for developers building under the LIHTC program, and therefore more financially viable. 30

Problem: Zoning and land-use laws limit the supply of affordable, accessible housing, resulting in residential segregation and discouraging public transit use. Single-family zoning limits access for renters, low-income households, and people of color. Recent research suggests that increased land-use regulation itself is a driving factor for the current housing shortage. NIMBY policies restrict zoning to prioritize single-family homes, which blocks housing construction despite the increased demand reflected by surging home prices. 31

Policy Response: Call upon Congress to require Department of Transportation (DOT) funding 32 to incentivize inclusive zoning and land-use reforms and to promote the development of mid-level housing. 33  Executive action can support this effort by identifying immediately actionable opportunities to require local and regional governments to meet inclusive zoning conditions, including removing exclusionary single-family zoning, enabling multi-family housing near transit, and legalizing accessory dwelling units (ADUs). Federal scoring criteria shall prioritize projects from jurisdictions demonstrating measurable progress toward fair and inclusive land use.

Additionally, the DOT must expand the existing use of scoring systems for competitive funding applications to prioritize land-use reforms and zoning objectives. 34 The DOT shall introduce a requirement for states to complete housing analyses for regional transportation needs to access funds allocated automatically on a formula basis. These analyses will identify housing needs near employment and transit centers, as well as areas of high housing vacancy, where expanded transport can contribute to revitalization. These requirements will also enable states, regions, and localities to specify their preferred strategies to meet the identified needs, such as increased density in commercial areas, or multi-family units near transport hubs. 35

Fair housing policies and principles must be embedded in housing and tax credit programs, particularly in HUD’s Low-Income Housing Tax Credit and the Treasury Department’s Community Development Financial Institutions Fund. 36 Developing a component within these programs that provides guidance on and confirms utilization of less discriminatory practices is crucial. This shall require demonstration of compliance with Fair Housing Policies and best practices as part of the CDFI certification process. 37

Problem: Federal housing, infrastructure, transportation, and social service programs often operate in disjointed and uncoordinated ways, which may result in inefficient use of resources, inconsistent guidance to states and localities, and missed opportunities for interagency collaboration. 38 Without a formal mechanism for cross-agency coordination, housing production may be slowed by administrative hurdles. This may leave outdated multifamily loan limits in place, underutilize vacant state and federal lands, and result in unnecessary barriers to construction.

Policy Response: Issue an Executive Order establishing a White House Interagency Council on Affordable Housing to coordinate federal housing-related programs and funding streams. 39 The council shall include senior leaders from HUD, DOT, the Department of the Interior (DOI), the Environmental Protection Agency (EPA), the Department of Justice (DOJ), the U.S. Department of Agriculture (USDA), the U.S. Department of Veterans Affairs (VA), the Department of Health and Human Services (HHS), the Federal Emergency Management Agency (FEMA), and any other relevant agencies and subagencies. The council’s mandate shall include:

1. Following the U.S. Government Accountability Office’s Leading Practices in Collaboration Across Government to align and coordinate federal housing, transportation, infrastructure, land-use, and social service initiatives to maximize impact. 40

2. Expanding the supply of affordable housing by increasing the Federal Housing Administration’s (FHA) outdated multifamily loan limits, consistent with the language of the 2025 Housing Affordability Act. This can be accomplished via executive action, as HUD can adjust FHA loan limits through regulatory guidance or rulemaking within its existing statutory authority under the National Housing Act. 41

3. Directing the HUD to publish an authorized waiver list and expedited guidance package within 180 days to remove unnecessary administrative barriers for eligible affordable housing projects. 42

4. Requiring the Secretaries of Housing and Urban Development, Agriculture, Veterans Affairs, and other relevant agencies to submit to Congress a report on improving collaboration in housing programs, consistent with the language of the bipartisan HUD-USDA-VA Interagency Coordination Act introduced in 2025.

5. Issuing joint interagency guidance to state and local governments to streamline program administration and reduce duplicative approval processes.

6. Tracking and prioritizing federal and state land repurposing for affordable housing.

7. Overseeing interagency reporting on housing equity, fair housing enforcement, and housing production.

The council shall also be instructed to deliver an inventory of developable federal and state-owned land eligible for housing reuse within 180 days; EPA brownfields and transit-adjacent lands shall be prioritized for adaptive reuse to support sustainable development, while environmentally protected lands and parklands shall be exempt from this list. 43

Problem: Homelessness in the U.S. continues to grow, increasing by 30% from 2022-24 when 2.3 out of every 1000 people were homeless, with disproportionately high rates among Hispanic, Black, Native American, and male populations. 44 Despite a proven track record of success in alleviating homelessness, 45 the “Housing First” policy is not universally utilized across the U.S. Housing First is a policy model that rapidly provides affordable housing to those in need as a first step and without prerequisites. 46 In this bipartisan-supported approach, recipients are then surrounded by supportive services, such as job training, mental health, and substance abuse counseling, which improve long-term outcomes, housing stability, and well-being. 47

Policy Response: An administration must repeal Executive Order 14238 to reinstitute the United States Interagency Council on Homelessness. This council was responsible for developing practical tools to support the implementation of Housing First. 48 HUD must be directed to prevent the use of prerequisites that undermine the demonstrated success of the Housing First approach. Work requirements, time-limited benefits, and proscribed rent increases set as prerequisites or conditions for access to Housing First programs and services have been proven ineffective time and again. Housing First works. Prerequisites and policies that ignore structural barriers in the housing market do not. 49

An administration needs to extend Housing First strategies to support homeless youth, particularly LGBTQ+ youth, by directing the Department of Housing and Urban Development, in coordination with HHS and the Department of Education, 50 to launch a federally funded Rapid Rehousing 51 model for homeless youth. Under this model, HUD will provide emergency grants through its Continuum of Care and Youth Homelessness Demonstration Programs, with explicit language prioritizing vulnerable groups such as LGBTQ+ youth. HHS can also expand transitional housing and mental health services via existing Family and Youth Services Bureau (FYSB) funds. The Department of Education shall issue guidance under the McKinney-Vento Homeless Assistance Act to ensure schools identify and support unhoused LGBTQ+ students with housing referrals and protections.

To further address homelessness, Congress can use the budget reconciliation process to expand mandatory funding for the National Housing Trust Fund (NHTF), 52 with dedicated annual allocations to support the construction, preservation, and operation of deeply affordable housing for households with incomes below 30% of the area median income. Such funding can remain fully within the scope of reconciliation rules, as the NHTF receives mandatory appropriations from the Federal Home Loan Mortgage Corporation, which are considered mandatory spending provisions. Funding shall be tied to measurable housing outcomes, including the number of units delivered and the income eligibility of households served.

Problem: Discriminatory, retaliatory, and arbitrary treatment of voucher holders in application screening and evictions prevents eligible households from accessing housing. Housing Choice Vouchers are an evidence-based policy success for improving housing stability. Housing stability improves outcomes across education, health, racial equity, and children’s long-term life success. 53 Without federal protections for voucher use, those eligible are often excluded from communities of their choice. Combined with a shortage of housing supply, this can result in households granted vouchers, yet unable to find housing. Discrimination against voucher holders can also result in illegal discrimination against protected groups. For example, Black women and children face more housing discrimination and are evicted at twice the rate of white renters. 54

Policy Response:  Issue an Executive Order directing HUD and the DOJ to enforce the Fair Housing Act (FHA) by forming a dedicated Enforcement Unit to uphold the protections of the FHA, challenge unlawful evictions, and enforce related housing policy ordinances. The FHA prohibits discrimination in housing transactions. 55 Much of the needed laws and legislation exist under FHA, but must be sufficiently enforced and funded. An Enforcement Unit providing legal support, mediation services, and assistance accessing available social services, particularly to low-income tenants, will reduce evictions and save emergency housing costs. 56 Development of this Enforcement Unit will draw on expertise from the ACLU and legal aid clinics to inform the strategies and programs of this new legal unit.  

Within this new Enforcement Unit, establishing a national right to counsel and increasing funding for existing and new legal services will further empower renters. While the FHA protects from discrimination based on race, color, religion, sex, family status, national origin, and disability, many minority and at-risk individuals and families need more protection. The President shall charge the Enforcement Unit to provide training on FHA protections and standards for municipalities, public housing authorities, fair housing groups, relevant lenders, and other community stakeholders. 57 Congress must provide the necessary funds for training programs. Backed by the provision of training to state and regional agencies, HUD and Congress will work together to incentivize or require state and regional administration of voucher programs, 58 which will increase the impact of the program and lessen the number of households that are eligible for vouchers but do not get them, or are unable to access housing with them. 

Congress must expand the FHA to prohibit discrimination in housing for sexual orientation, gender identity, marital status, veteran status, or source of income. Renters and prospective homeowners must also be protected from discrimination by ensuring that tenant and credit-reporting agencies abide by the Fair Credit Reporting Act standards through funding and enforcement. 59 Empower and support residents, local governments, planning offices, and community organizations to integrate fair housing information and policies throughout planning and development processes. 60

Problem: Pandemic policies to protect households at risk of eviction and homelessness were a lifeline for families, but are running out even as we face a housing supply crisis. 61

Policy Response: Create a National Housing Stabilization Task Force within the Department of Housing and Urban Development to provide emergency rental assistance during a housing or financial crisis, as well as ongoing housing stability services. This Task Force will coordinate cross-agency services and funding, including the FHA Enforcement Unit (above), to provide counseling and legal aid resources. Together, these services can significantly reduce evictions and prevent homelessness. 62

Problem: AI and data broker tools, like Realpage, allow landlords in a region to engage in anti-competitive behavior, including coordination of  rent levels, lease terms, utility contributions, etc. 63 In 2023, tenants paid an extra $3.8 billion in rent due to these algorithms. 64

Policy Response: Congress must pass the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act. 65 The bill will prohibit landlords from utilizing algorithms and related services that collect occupancy and lease data in order to recommend rents, vacancy rates, and lease terms. The bill reaffirms that direct collusion of rent prices between landlords is anti-competitive and illegal. The bill prohibits mergers of companies that own this data. The bill also allows tenants, who are victims of price-fixing, to join class-action lawsuits and ignore arbitration agreements.

Problem: Bias in application, credit, 66 and lending systems prevents equitable access to housing and rental markets. 67 More than four million incidents of housing discrimination occur every year. 68 Black renters not only pay more than White renters for similar units, but they also pay more in application fees and security deposits. The White homeownership rate continues to be significantly higher - outpacing Black homeownership (by 67%), Latino homeownership (by 45%), and Asian American homeownership (by 20%). 69 All of which increases the risk of housing instability and creates persistent barriers to building wealth and financial stability for current and future generations. 

Policy Response: Encourage Congress to expand the Consumer and Financial Protection Bureau 70 regulations for fair mortgage lending 71 to prohibit and prevent bias via the use of automated systems, including algorithms and AI, 72 in property valuation models 73 and credit application systems. Additionally, the DOJ must enforce the Fair Housing and Equal Credit Opportunity Acts by banning any lenders or housing providers from accessing federal programs or assistance for five years if they are found in violation.  74 First-generation buyers shall be incorporated into the target groups for first-time homeowner financial supports. 75 76

Problem: Climate change is damaging and threatening the housing stock through wildfires, hurricanes, floods, and excessive heat. It is also upending the home insurance market as families face rising premiums and even uninsurability. 77

Policy Response: Invest in climate resilience strategies and disaster preparedness, including development of new wind and wildfire insurance pools modeled on the National Flood Insurance Program. 78  Expand the use of climate-resilient building codes by providing grants and financing programs to state and local governments using structures such as the HUD Community Development Block Grants, or the Department of Energy’s  The U.S. Department of Energy’s Weatherization Assistance Program. 79 Implement or support policies, such as insurance discounts, tax refunds, or grants, that encourage homeowners to invest in the climate resilience of their homes. 80 Use HUD’s entitlement and competitive grant programs to incentivize states and local governments to review and enhance zoning policies to mitigate and minimize climate disaster risk, 81 and to encourage development in places with lower emissions. 82

What policymakers and citizens can do NOW

State level actions

Policymakers at the state level can take actions to support human rights based housing policy in their area, including:

• Learn more about Housing First and encourage its application in your state. Oppose the introduction of barriers to access, such as work requirements or time limits to housing support policies. 

• Engage with the White House Interagency Council on Housing Affordability once established. This body will coordinate federal housing policy across agencies and provide states with unified guidance on aligning state housing initiatives with federal priorities. States shall participate in Council-led forums, share data on housing needs and land availability, and leverage Council-issued guidance to simplify state-level program administration. Coordination will help states access and utilize federal resources more efficiently, particularly for projects that require multi-agency approval or the integration of infrastructure.

• Search the NLIHC’s database to identify the critical housing issues in your state and recommend your Congressional and local legislators take supportive policy action. Connect with NLIHC partners in your state to end housing poverty and homelessness. 

• See if your state is among the 20 that already have renters’ tax credits. If not, encourage your government leaders to implement this policy for housing market fairness. 

Local level actions

Citizens and local policymakers can take actions to support human-rights based housing policy in their area, including: 

• Identify federal funding opportunities to support housing development via Local Housing Solutions, which provides a one-stop shop for tools and guidance for local government and citizens, and NLIHC Housing Trust Fund Project, which provides up to date listing of funds established for providing affordable housing across the U.S. 

• Learn about the ways zoning policy can help and hinder affordable housing and identify successful innovations and model policy via the following resources:

• National Association of Housing and Redevelopment Officials

• BiPartisan Policy Center

• HUD guidebook Eliminating Zoning Barriers to Affordable Housing

• National League of Cities Zoning resources

What you can do

Individuals can take actions to support human rights based housing policy, including: 

• Join https://yimbyaction.org/ to advocate for affordable housing and inclusive, sustainable communities across the U.S. 

• Encourage your legislators to join and support the key housing legislation identified and supported by the National Low Income Housing Coalition (NLIHC)