(Washington, D.C.) Today, Fannie Mae announced its intention to guarantee up to $1 billion in debt for Invitation Homes, a subsidiary of the wealthy Wall Street investment firm Blackstone and the country’s largest owner of single-family rental homes.
Robert Grossinger, President of the National Community Stabilization Trust (NCST), responded to this development with the following comment: “I am perplexed to see Fannie Mae place a taxpayer guarantee behind the same private interests whose risky practices led to the millions of foreclosed homes they are now buying up. These investors so far have had no trouble financing the purchase of tens of thousands of homes without government support. But if Fannie Mae determines that a taxpayer subsidy of the private sector is necessary, at the very least the arrangement with Invitation Homes should contain provisions that strengthen protections for tenants living in these homes, support affordability, and prohibit the predatory rent-to-own and installment contract arrangements that are becoming increasingly common in the single-family rental market.”
Julia Gordon, Executive Vice President of NCST, added, “We call on Fannie Mae to extend similar financing to mission-driven organizations who will ensure that single family rentals are decent, safe, and affordable, and who will retain wealth in those neighborhoods rather than funneling it straight from Main Street to Wall Street.”
NCST is a non-profit organization that aims to restore vacant and abandoned properties to productive use and protect neighborhoods from blight.
For interviews or more information, please directly contact:
Rob Grossinger, NCST President at 202-706-7500, or
Julia Gordon, NCST Executive Vice President, at 202-706-7501.