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tenants' rights
Michigan Lawmakers Have a Chance to Protect People From Predatory Landlords
In the midst of an affordable housing crisis, the protections in SB486-492 and HB 5157-5163 would interrupt the cycle of corporate greed that leaves hundreds of thousands of Michigan manufactured home residents like me and my wife struggling.
Dec 01, 2024
My wife and I have lived in North Morris Estates, a manufactured housing community in Genesee County, Michigan, for 15 years. I love my home. I love my community. But since 2021, it feels like my community doesn’t love me back.
That year Homes of America, an affiliate of hedge fund Alden Global Capital, bought North Morris Estates. Since then our home has felt more like a battleground than a refuge.
We, like most residents, can’t move our home. The choices are fight back or give up. Anyone who knows us knows we aren’t giving up.
For too long Michiganders living in manufactured housing parks have been subject to the profit-driven whims of predatory, absentee corporate landlords like Homes of America and Alden Global Capital.
When Homes of America took over, they increased our rent by $100 a month over two years. We had proof our rent was always timely and our checks cashed, but they tried to evict us for unpaid rent and 19 late charges going back two years. We quickly learned to send our rent via certified mail and demand receipts.
They left dozens of homes empty and rotting, creating dangerous conditions and blight. When we, like others, requested repairs to make our community safer, we were either told to pay for the work ourselves or faced retaliation. They ignored requests for basic infrastructure repairs, and our community pool and clubhouse have been closed since 2022 due to lack of maintenance.
To get a sense of the retaliation we face, consider our butterfly garden. With permission from the previous owner, we established a nationally registered Monarch Waystation on vacant lots. It was a small victory for residents and a source of pride. After we reported Homes of America’s unpermitted construction, they bulldozed our beloved Monarch Waystation and left a pile of dirt and uprooted flowers. They even took photos, as if it were a trophy. These people prefer blight to beauty!
They often shut off water without notice, leaving us unable to finish a shower, wash dishes, or clean. We’ve resorted to keeping a full bucket in the tub to flush during shutoffs. Even when it’s on, it’s not uncommon for brown, putrid water to come out of our taps.
In November the state denied the renewal of North Morris Estates’ operating license due to violations of the Safe Drinking Water Act. In January the Michigan Department of Environment, Great Lakes, and Energy (EGLE) issued a violation notice, and Thetford Township took the unprecedented step of obtaining a court injunction to halt park operations. This led to the first-ever criminal charges in Michigan against the owners of a mobile home park for operating without a license, an alleged violation of the Michigan Mobile Home Commission Act.
I’m glad the law is finally beginning to hold Homes of America accountable. But the current law didn’t prevent any of this—the blighted homes, the dirty water, the junk fees. It took hundreds of hours of research, calls, emails, meetings, documentation, and police investigations to get the wheels of justice just starting to turn for residents.
That’s why it’s critical that the Michigan legislature passes SB 486-492/HB 5157-5163. They would create basic protections for residents. They would prevent park owners from renewing their licenses if they have a history of unjustified rent hikes, require more frequent and stringent inspections, create a searchable public database of park owners, and prevent overcharging on utilities. The bills would also update outdated tax incentives that encourage landlords to keep landlord-owned homes off the market.
For too long Michiganders living in manufactured housing parks have been subject to the profit-driven whims of predatory, absentee corporate landlords like Homes of America and Alden Global Capital. In the midst of an affordable housing crisis, the protections in SB486-492 and HB 5157-5163 would interrupt the cycle of corporate greed that leaves hundreds of thousands of Michigan manufactured home residents like me and my wife struggling.
These bills are essential to protect people like us—because no one should feel like a prisoner in their own home.
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Harris to Target Predatory Wall Street Landlords With Four-Year Housing Plan
The Democratic nominee is expected to endorse a crackdown on algorithmic price-setting by big landlords and an end to tax breaks for corporate investors that buy up single-family homes.
Aug 16, 2024
Democratic presidential nominee Kamala Harris on Friday is set to outline a four-year housing plan that would promote the construction of 3 million new housing units, provide substantial down-payment aid to first-time homebuyers, and strip away tax incentives for corporate investors that
purchase single-family homes and drive up prices to pad their bottom lines.
Harris'
proposals to tackle the nation's worsening housing crisis are part of a broader economic agenda that the vice president will lay out in a speech Friday afternoon in North Carolina.
Harris, who recently pledged to "take on corporate landlords and cap unfair rent increases," is expected to urge Congress to pass a pair of bills that would crack down on algorithmic price-setting by big landlords and bar corporate investors who buy up 50 or more single-family rental homes from taking advantage of tax breaks, building on President Joe Biden's push for corporate landlords to cap rent hikes.
A recent report by the Government Accountability Office (GAO) found that just 32 institutional investors owned a combined 450,000 single-family homes in the U.S. and the five largest investors owned nearly 300,000 homes. Institutional investors control 25% of the single-family rental housing market in Atlanta, Georgia, according to the GAO.
Another major component of Harris' housing plan calls for providing up to $25,000 in down-payment assistance to "working families who have paid their rent on time for two years and are buying their first home."
Harris' campaign said the plan would "expand the reach of down-payment assistance, allowing over 4 million first-time buyers over four years to get significant down-payment assistance."
"Trump likes to talk about being a builder, but when he was president, he simply never got it done. Now, his Project 2025 agenda will make it more expensive to rent or buy a home," the Harris campaign said Thursday. "Year after year during his presidency, Trump tried to gut rental assistance programs. New home construction slowed while Trump was in office—tightening the housing crunch and enabling his wealthy friends to profit."
Housing justice advocates applauded the emerging details of Harris' plan, arguing that persistent tenant organizing has helped elevate the hardships of renters to the top of the Democratic Party's priority list for 2024 and beyond.
"How did these get on the agenda? Organized renters making good trouble," the Alliance for Housing Justice wrote on social media.
In recent months, progressives and tenant organizers have worked to make housing central to the 2024 campaign as renters across the U.S. struggle to make their monthly payments and as sky-high prices, elevated interest rates, and supply shortages box out first-time homebuyers. Housing costs accounted for roughly 90% of the overall increase in the Consumer Price Index last month, according to the Bureau of Labor Statistics.
A recent research brief by Russell Weaver of Cornell University stressed that tenants impacted by the nation's housing affordability crisis are a "large, untapped political base—especially for Democrats and progressives."
"Candidates who campaign on housing affordability and tenant protections have the potential to significantly boost renter turnout, which could be decisive in tightly contested races," Weaver said.
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The US Has a Housing Crisis, Not a Squatting Crisis
The real estate lobby is using its power to advance a flurry of anti-squatter bills to push back against tenant protections enacted in the early years of the Covid-19 pandemic. Lawmakers should not take the bait.
Aug 11, 2024
Alabama, Tennessee, and Florida’s new anti-squatter laws all went into effect in the last two months, the latest exhibit of the real estate industry’s influence in American politics. In this year alone, at least 10 states have considered legislation that revokes tenancy rights, making squatting—when someone moves into a vacant building or onto uninhabited land—a criminal matter instead of civil one.
While the fear-mongering around squatting started as a right-wing talking point, now anti-squatter bills have passed in several states with bipartisan support. Earlier this year, in New York, where Democrats dominate politics, Gov. Kathy Hochul and several state legislators took a victory lap after passing a budget bill that declared that squatters don’t have the same rights as tenants, and to support property owners statewide.
Some would assume that these legislative actions were taken in response to a threat of a mass takeover of homes in cities across the country. But in reality, as many experts have rightly pointed out, squatting is extremely rare. A threat does exist, which is why we’re seeing a rise in this legislation. It’s just not to property owners. It’s to the power of the real estate lobby.
The manufactured crisis around squatters is meant to distract from the fact that over half of Americans struggle to pay their rent or mortgage every month.
As outlined in a new report by the Private Equity Stakeholder Project and others, the real estate lobby is a sprawling, interconnected group of representatives from the top corporate apartment owners and managers in the country, who—by having members sit on each other’s boards—can tap into an enormous shared pool of resources that they’re using to destabilize communities across the country.
The lobby is using this power to advance a flurry of anti-squatter bills to push back against tenant protections enacted in the early years of the Covid-19 pandemic. This was a time when millions of people in the United States were kept in their homes thanks to policies like rental assistance expansion and foreclosure and eviction moratoria. For many of us, it was the first time we witnessed our country recognize the public health and economic value of keeping people in their homes. These protections made clear that regardless of race, class, or housing tenure, housing stability is the foundation for thriving communities.
Now, real estate industry groups, the second biggest lobbying spender in the U.S., are using anti-squatter legislation in a desperate attempt to undercut that progress. Capitalizing on America’s heightened anxiety about the housing crisis, they are scaring people into believing that tenant protections come at the expense of homeowners. Lawmakers should not take the bait.
At best, these bills are reactionary responses to a problem that doesn’t exist. At worst, they represent the worst of election season fear-mongering: anti-immigrant sentiment, dog-whistle racism, and calls for law and order. Look no further than the Florida attorney general’s celebration of legislation declaring that immigrants were taking over homes across the state, based on a viral TikTok. In reality, most states already have laws that address squatters adequately—it’s tenant protections that remain significantly weaker relative to property rights.
Advancing anti-squatter legislation is a slippery slope to eroding eviction protections passed during the last few years, and that’s exactly what the real estate lobby wants: They themselves refer to squatter legislation as “eviction policy.” Clearly, they are hoping to put legislators on a path to repealing hard-fought regulations to protect tenants by inferring a false equating of squatters (who live in vacant properties without legal agreements) and tenants (who legally inhabit homes with leases).The bills put any resident with tenant or ownership interest at risk of immediate displacement, often by a law enforcement agency, without the normal requirement of notice, proof, and judicial review before someone is removed from their home.
But their efforts to undo these gains won’t be easy, because the tide has turned in support of tenant protections as a way to address our housing crisis. In poll after poll, people in the United States say they want to see governments take action to alleviate the cost of housing. This has quickly become a front-burner issue for Americans and a top priority for them in the presidential election, only second to inflation. A recent survey of voters in battleground states found that 82% of renters believe that, if addressed, the cost of rent and housing would make their personal situation better.
The manufactured crisis around squatters is meant to distract from the fact that over half of Americans struggle to pay their rent or mortgage every month. And that a tenant-led movement to change this reality is building political power, winning local elections, and influencing federal policy.
Considering this, one can see why the real estate lobby, which amassed over $2.5 billion in revenue during the height of the pandemic, is grasping at straws to stay relevant to legislators. While it’s trying to ramp up efforts to unravel tenant protections, the lobby itself—the National Association of Realtors (NAR)—is unraveling. From Department of Justice investigations and anti-trust lawsuits to sexual harassment allegations, and a musical chairs of presidents and CEOs in the last two years, members are not happy. In October 2023, Redfin announced it would require many of its brokers to cancel their NAR memberships and stop paying dues. Reports of NAR running out of liability insurance coverage and rumors of real estate moguls starting alternative associations show cracks in a foundation that will be difficult to repair. No amount of fresh paint, even if it is in the form of throwing tenants under the bus, can fix such dysfunction. But they’ll try as long as they can.
As America increasingly becomes a nation of renters, lawmakers can’t lose sight of the bigger picture: We have a housing crisis, not a squatter crisis. Millions of people calling on leaders to alleviate their suffering cannot afford to be sold out with this distraction. Lawmakers should pass policies that we know advance housing stability, instead of doing the bidding of those attacking it.
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