Rep. Axne Applauds Freddie Mac's Expansion of Manufactured Housing Tenant Protections, Urges Others to Follow Suit

Statement

Axne is the author of legislation to require a range of protections for tenants of manufactured housing communities purchased with federal backing
Today, Rep. Cindy Axne (IA-03), Vice Chair of the Financial Services Committee's Housing Subcommittee, applauded a decision by government-sponsored mortgage purchaser Freddie Mac to include tenant protections in all future manufactured housing community (MHC) transactions.

The protections, which include renewable lease terms, written notice of rent increases, grace periods for late rental payments, and rights governing the sale of a manufactured home at an MHC, reflect similar proposals that Rep. Axne included in her bill, the Manufactured Housing Tenant's Bill of Rights.

"Outside investors get federal backing to buy up manufactured housing communities and then too often they turn around and only care about squeezing profits out of folks who don't have the same protections as other tenants do in similar circumstances. We've seen it happen here in Iowa, and across the country," said Rep. Axne. "I applaud Freddie Mac's decision to include basic protections for manufactured housing tenants in all of its loan agreements and encourage Fannie Mae and others financing manufactured housing communities to follow suit as soon as possible. While I will continue to push to make these protections stronger, I am encouraged by this first step to make these protections universal."

The Manufactured Housing Tenant's Bill of Rights, introduced by Axne in May, would establish a set of minimum standards for MHC tenants that receive federal financing through Fannie Mae, Freddie Mac, or the Federal Housing Administration.

Rep. Axne has led the charge on protecting MHC tenants since her first year in Congress, when she learned that constituents in Waukee were facing rent hikes at rates up to 70% after purchase by Utah-based investment firm Havenpark Capital.

Axne is also the author of the Manufactured Housing Community Preservation Act, which would provide grants to help nonprofits, resident-formed cooperatives, and other local entities purchase and maintain an MHC, as long as they maintain certain affordability standards.

Axne' legislation inspired the inclusion of funding within the House's Build Back Better Act to support MHC affordability and upgrades. That funding advanced out of the House Financial Services Committee earlier this week with the help of Rep. Axne.

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