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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 72 J O U R N A L August 2023 Government HUD TAKES NEW ACTIONS TO STRENGTHEN RENTER RIGHTS AND PROTECTIONS T he U.S. Department of Housing and Urban Development (HUD) has announced new actions to increase fairness in the rental market and further renter protections in housing. With more than 44 million households (nearly 35%) of the U.S. population, living in rental housing, the nation's rental market is defined by a patchwork of state and local laws and legal processes that leave far too many renters with little recourse when hous- ing providers fail to comply with the law or the lease agreement. Through these actions, HUD and the Biden administration are building on this framework and have jointly announced a se- ries of new actions to protect renters in a time of crisis through three key initiatives: » First, HUD is sending messages to public housing agencies and property owners to remind them of their obligations and to share best practices for informing rejected applicants about why they were turned down for housing. This action makes the rental screening process more transparent and gives renters greater ability to correct any errors that may occur. » Second, HUD is supporting renters by making available $10 million for tenant education and outreach in properties supported by the Section 8 Project-Based Rental Assistance program. Such funding is critical to supporting capacity building efforts that enable tenants to better engage with property management and help sustain safe, clean, and quality affordable housing. » Third, HUD is announcing that it will soon issue a proposed rule addressing notification requirements for evictions due to nonpayment of rent in certain subsidized housing properties. Under this proposed rule, when tenants face eviction for nonpayment of rent in public housing and properties with project-based rental assistance, housing providers would need to provide those tenants with written no- tification at least 30 days prior to lease ter- mination. These actions advance commit- ments made in the Blueprint for a Renters Bill of Rights released by the Biden-Harris administration early this year. "We must provide renters with the nec- essary resources to safeguard their interests and enhance their communication with landlords," HUD Secretary Marcia L. Fudge said. "HUD is dedicated to collaborating with renters and ensuring they are well informed about their rights." HUD Deputy Secretary Adrianne Tod- man recently hosted the "National Conversa- tion @ The Community Table," an opportu- nity for tenants, advocates, and stakeholder organizations to engage in dialogue about the principles within the White House Blueprint for a Renters Bill of Rights, as well as share recommendations regarding additional com- mitments that they believe would be helpful to communities across the country. Additional information about the actions taken by HUD include: » HUD Adverse Action Notice: HUD pro- gram offices sent messages encouraging public housing authorities and multifam- ily-assisted property owners to include adverse action notices in writing as part of the denial letter that they are required to send when applicants are denied due to issues flagged on tenant screening reports or other background checks. Other agencies, including the Federal Housing Finance Agency and the U.S. Department of Agriculture, joined HUD in sending out messages to owners and operators of federally assisted or financed housing that they oversee about their obligations under FCRA. In addition, the Federal Trade Commission issued updated guidance for landlords on how to comply with FCRA, and the Consumer Financial Protection Bureau shared a blog highlighting agen- cies' actions and the importance of giving tenants the opportunity to discover and correct issues contained in tenant screen- ing reports. » Approximately $10 million for tenant outreach and education: With this new funding that supports tenant education and outreach in properties supported by the Section 8 Project-Based Rental Assis- tance (PBRA) program, HUD reaffirms the Biden administration's commitment to quality affordable rental housing and