Release: Khanna, Porter, and Takano Introduce Bill to Rein in Rent Gouging by Wealthy Corporate Landlords

Press Release

Representatives Ro Khanna (CA-17), Deputy Whip of the Progressive Caucus, Katie Porter (CA-45), and Mark Takano (CA-41) introduced the Stop Wall Street Landlords Act to rein in the role of institutional investors in the Single Family Residential (SFR) market and to put a stop to rent gouging.

Since the 2008 housing crash and subsequent foreclosure crisis, increased investor activity in America's housing market has normalized price gouging, excessive fees, and abusive practices while artificially driving up housing prices. As a result, investors last year bought nearly 25% of U.S. single family homes sold last year, driving up rent prices for American families.

The Stop Wall Street Landlords Act works to deter future institutional investments in these properties by imposing a tax on existing and future acquisitions of SFRs. It also prohibits Fannie Mae, Freddie Mac and Gennie Mae from purchasing and securitizing mortgages held by large institutional investors who use debt to buy single family homes and rent them out for optimal profit.

"The financialization of the housing market by Wall Street exacerbates corporate profiteering and anti-competitive practices that makes it harder for Americans to afford housing or access homeownership," said Representative Ro Khanna. "Low- and middle-income families in my district and across the country are being pushed out because of profiteering and unfair practices by large corporate landlords. This legislation will help level the playing field and put a stop to rent gouging in America."

"When I was on the front lines of the foreclosure crisis, I saw firsthand how corporate special interests take advantage of families to line their pockets," said Representative Katie Porter. "The Stop Wall Street Landlords Act promotes affordable homeownership, so that our kids can live in the same communities they grew up in. I am proud to work with Representatives Khanna and Takano to hold Wall Street accountable."

"Wall Street should not be any family's landlord," said Representative Mark Takano. "As the housing crisis continues to plague the country, America's middle class is acutely feeling the constraints of our nation's low housing stock and increasing prices. Meanwhile, wealthy investors drive these costs up by monopolizing ownership of single-family residences. The Stop Wall Street Landlords Act takes the urgent steps needed to keep corporate investors out of the single-family housing market."

Source