May 4, 2018

Legislation introduced to require pass-through leases for displaced residents

Recently, Representatives Sean Patrick Maloney (D-NY) and Adriano Espaillat (D-NY) introduced a bill titled the “Affordable Housing Protection Act” (H.R. 5602). The bill would require HUD to establish pass-through leases for displaced residents, ensuring that residents are re-housed in the event of an emergency. The bill would codify into law current HUD guidance regarding pass-through lease authority in instances when HUD-assisted residents are displaced due to a fire or natural disaster, among other reasons. The bill also includes a provision requiring the change to be implemented in HUD contracts upon their renewal. According to a press release about H.R. 5602, “the bill would require the Secretary of HUD to determine who should be responsible for establishing the lease arrangements, the timeframe for seeking temporary housing, and best practices to follow in the event that temporary housing is unavailable. Tenants would continue to pay the same level of rent they had paid prior to being displaced, and would be protected from rate hikes.” Although HUD has published guidance recommending the establishment of pass-through leases if residents are not able to return to their normal housing, the guidance may not observed universally throughout the country. In the press release, Representative Maloney said, “We’ve already got ‘guidance’ on this, but housing should be a guarantee, not a gamble – families shouldn’t be left out in the cold because of a disaster.” The bill was introduced on April 24, 2018, and referred to the House Financial Services Committee. NAHMA will keep members up-to-date on the bill’s progress.

Posted