FHFA Rescinds Previously Introduced Federal Landlord-Tenant Requirements

On March 14, 2025, William J. Pulte was sworn in to a five-year term as Director of the United States Federal Housing Finance Agency ("FHFA"). Prior to his appointment, FHFA had temporarily postponed the implementation of new landlord-tenant regulations for multifamily properties backed by Fannie Mae and Freddie Mac until May 31, 2025.

The new requirements for properties backed by Fannie Mae and Freddie Mac would have applied to rental properties that secure new loans through Fannie Mae and Freddie Mac starting on or after February 28, 2025. The potential requirements would involve updating lease agreements to incorporate specific tenant protections, including that residents receive a 30-day written notice prior to any rent increase, a 30-day written notice before lease expiration, and a 5-day grace period for late fees related to rent nonpayment.

As outlined in the policy grids released by these enterprises, housing providers will be obligated to inform their residents about these new protections and revise all residential leases within these communities to reflect the updated standards, once they go into effect (and barring any changes in the interim).

In a statement posted by Director Pulte on his “X.com” account at the end of March, Director Pulte posted a series of orders, one of which included an order to rescind an order issued in August 2024 directing Freddie Mac and Fannie Mae to implement policies requiring borrowers to meet certain minimum standards for rental payment flexibility and lease notices. The order stated that state and local governments have these provisions in place and that they increase compliance burdens for multifamily lenders and property owners.

Director Pulte's decision to rescind these Biden-era tenant protections marks a change in the FHFA’s approach to landlord-tenant matters, leaving matters related to tenant protections to the states to determine what, if any, additional protections are necessary.