Ginnie Mae’s outstanding mortgage-backed securities portfolio grew for the 13th consecutive month in July, hitting $2.252 trillion, up from $2.229 trillion in June and $2.117 trillion one year ago. Growth in the portfolio was fueled by steady new issuance of Ginnie Mae MBS as homeowners found value in the government-backed mortgage market. New MBS issuance for July was $45.5 billion  –down $500 million from June– supporting the financing of more than 155,000 single-family homes and rental units.

The July issuance includes $43 billion of Ginnie Mae II MBS and $2.01 billion of Ginnie Mae I MBS, which includes approximately $1.85 billion of loans for multifamily housing.

“As Ginnie Mae celebrates 54 years of being a consistent source of low-cost mortgage liquidity, we continue to see steady growth in our portfolio even in a changing and very dynamic housing market,” said Ginnie Mae Executive VP Sam Valverde.

The decision comes after Ginnie Mae guaranteed more than $46 billion in mortgage-backed securities in June, helping support affordable homeownership and rental unit development for more than 164,000 households. The June issuance brought the Ginnie Mae MBS program balance outstanding to $2.233 trillion.

For more information on monthly MBS issuance, UPB balance, REMIC monthly issuance and global market analysis, visit the most recent Ginnie Mae Disclosure here.

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The newest national survey of new homeowners commissioned by U.S News & World 360 Report Reviews found that a majority of new homeowners who purchased a home since the beginning of 2021 reported that they felt “house rich and cash poor” with many admitting they felt pressure to buy as home prices ramped up. 

Using Pollfish, U.S. News surveyed 2,000 households on their homebuying experience. The group was selected to be representative of the population at large. Forty-four percent of respondents were female; the remaining 56% identified as male. 

“Our new homeowner survey reveals the current stressors involved in the homebuying and moving experience among first-time buyers—more than half (56%) of new homeowners reported unexpected repairs since moving in and one-third (33%) spent more than $1,000 in unexpected repairs since moving in,” said Kyle Wagner, Ratings Editor for 360 Reviews. He added, “Perhaps most surprising is the fact that respondents ranked moving as the most stressful life event more stressful than breaking up with a romantic partner, planning a wedding, or having a baby.” 

Adding to that stress, the median sales price of a home went from $335,900 at the beginning of 2021 to $449,000 in May 2022, which surely pressured people to get into homes sooner than they otherwise would have. 

All-in-all, 50% of new homeowners wish they would have waited to buy a home until they had more money saved. Forty percent of homeowners bought their home because of rising prices while 35% wish they had bought a home earlier than they did.

According to the report, respondents who wished they’d waited longer to buy also primarily cited financial reasons: half of them (51%) said they wished they’d waited so they could save more money, and almost half (47%) said they wished they’d waited “until home prices went down.” 

The costs of new homeownership were also a stressor for respondents. Two-thirds (66%) purchased a home warranty (but 14% don’t understand how their policy works), 56% of new homeowners had unexpected repairs since moving in, and 33% spent more than $1,000 in unexpected repairs since moving in. 

While quantifying stress can be a challenge, the survey also asked respondents to rank how stressful buying a house was compared to other common, high-stress life events—respondents ranked purchasing a home as the most stressful life event they have endured, higher than breaking up with a partner, planning a wedding, or having a child.

Click here to view the report in its entirety. 

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The Pending Home Sales Index (PHSI), which measures housing contract activity, again fell in July, the second month in a row and the eighth time it has fallen this year. In addition, three out of the four major regions in the country also reported declining numbers, as one region, the West, posted a minor gain. 

On a year-over-year basis, all four regions reported double-digit percentage slides. 

All-in-all, the index slid 1.0% to a value of 89.8 on a monthly basis from June 2022. On a yearly basis, the index has fallen 19.9%. 

This information comes by way of the National Association of Realtors (NAR) who has been publishing this report since 2001. The index was benchmarked to 100 based on contract activity in 2001. 

“In terms of the current housing cycle, we may be at or close to the bottom in contract signings,” said Lawrence Yun, NAR’s Chief Economist. “This month’s very modest decline reflects the recent retreat in mortgage rates. Inventories are growing for homes in the upper price ranges, but limited supply at lower price points is hindering transaction activity.” 

This report comes at the heels of a separate report that found affordability in June fell to a level not recorded since 1989. Accounting for a 30-year fixed-rate mortgage and a 20% down payment, the monthly mortgage payment on a typical home jumped to $1,944, an increase of 54%, or $679, from one year ago. 

“Home prices are still rising by double-digit percentages year-over-year, but annual price appreciation should moderate to the typical rate of 5% by the end of this year and into 2023,” Yun added. “With mortgage rates expected to stabilize near 6% alongside steady job creation, home sales should start to rise by early next year.” 

The Northeast PHSI dipped 1.9% from last month to 79.3, down 15.4% from July 2021. The Midwest index retracted 2.7% to 91.2 in July, a 13.4% decline from a year ago. 

The South PHSI decreased 1.1% to 106.6 in July, a pullback of 20.0% from the previous year. The West index increased 2.2% in July to 70.0, down 30.1% from July 2021. 

George Ratiu, Senior Economist & Manager of Economic Research for Realtor.com, also commented on the report: 

“Contract signings for existing homes are highlighting that buyers have reached the limit of their financial wherewithal to handle the impact of high inflation, property prices, and interest rates, with a 1.0% monthly slide, to the lowest level since April 2020 at the height of the pandemic. The monthly decline was propelled by drops in all regions, except the West. At the same time, pending home sales tumbled 19.9% from July of 2021, with double-digit drops in all major regions.” 

“Summer is historically the peak period for home buying in a given year, as we’ve generally seen larger homes exchange hands at top prices. This year’s summer housing market definitely notched record prices. However, sales of existing homes have been on a sharp decline, accompanied by an equally significant drop in sales of new houses. Today’s data point to continued weakness in home sales going into the latter half of this year.” 

“For buyers, the early 2022 rush to lock in low mortgage rates before they rose even higher has since been replaced by the reality that sub-3% rates are a thing of the past. In addition, with the number of homes for sale growing with each month and accompanying price reductions gaining steam, signaling a transition toward a relatively healthier market, buyers are remembering that home inspections, contingencies, and price negotiations are typically the norm. In turn, many home shoppers are choosing to take a wait-and-see approach as we count down the last remaining weeks of summer, casting a cautious eye toward the cooler seasons ahead and the potential discounts they may bring.” 

“Importantly, current trends remind us that real estate markets move in cycles, and this one is no different. After a period in which the Federal Reserve boosted capital markets with its monetary easing, we are now in a stage of tightening, which will see borrowing costs continue to increase in an effort to rein in fast-paced inflation. With interest rate hikes expected to continue for several more months, we will see real estate demand remain subdued.” 

Bright MLS Chief Economist Dr. Lisa Sturtevant had the following reaction to this morning’s PHSI report: 

“Home sales activity continued to be lower than a year ago, with new data from the National Association of Realtors showing that July pending sales were down 19.9% year over year. Pending sales activity also fell 1.0% month-over-month, which is a more modest drop off than is typical between June and July.” 

“While the year-over-year slowdown in buyer activity is significant, it seems hyperbole to be talking about a housing “recession.” After two years of double-digit price growth, fierce competition among buyers, and offers sometimes tens of thousands of dollars over list price, the housing market is resetting to a more sustainable state. In some markets–notably the West–the number of pending sales actually increased between June and July.” 

“In July, mortgage rates were quite volatile in reaction to the strong jobs report, the drop in the inflation rate, and the Federal Reserve’s rate hike. Even as mortgage rates dipped below 5% at the end of the month, buyers did not immediately rush back to the market. According to weekly data for the Mid-Atlantic, new purchase activity actually declined during the last week of July as rates were falling. With lower inflation and a strong labor market, the Federal Reserve likely will move less aggressively on rates at the September meeting and mortgage rates could stabilize, easing that rate volatility.” 

“But prospective buyers are looking at more than just interest rates. Sellers are cutting prices and inventory is expanding, which is providing more options for buyers. The slower-than-average decline in pending sales activity between June and July suggests there may be more buyers in the market after Labor Day who are seeing stabilizing mortgage rates and sellers willing to cut prices and negotiate terms. Though the market will remain cooler than a year ago, expect pending sales to increase as we head into fall.” 

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Home sales showed no signs of stopping its recent descent in July 2022, as sales dropped to their lowest level since the beginning of the pandemic when the market was at a near standstill. 

According to Redfin, home sales dropped 19.3% year-over-year in July, and by another measure, home sales dipped 4.1% month-over-month, the sixth-straight monthly decline recorded by their report. 

Redfin said that this decrease comes as some prospective homebuyers were sidelined because they were priced out of the market; others were wary of potential home-value declines in the near future amid early signs of a recession. 

In addition, home prices decelerated from their recent meteoric rise only registering a 7.7% gain over the course of the month. Now that price growth is dipping into single-digit territory after two years of double-digit increases represents “slumping” homebuyer demand shown by the fact that homes are also sitting on the market longer than before amid dwindling competition. 

Sellers are also backing off, as many are becoming hesitant to sell for less than what they would have gotten at the height of the pandemic homebuying frenzy. This is in addition to the fact than many homeowners are staying put because they have a lower mortgage rate than the 5% rates being offered currently. 

So far, new listings have dropped 13.5% year-over-year, the biggest decline in the last 12 months. Many of the sellers who did list their homes had to settle for less. Twenty-one percent of sellers dropped their asking price in July, the highest share since at least 2012, when Redfin started tracking this data.

“The buyers who are still in the game are finally getting a break from bidding wars, which means they can be picky,” said Raleigh, North Carolina Redfin Agent Pam Lewis. “Three months ago, buyers were saying, ‘Get me a building with four walls and I’ll make it work.’ Now they have some choices. They don’t want a home if it doesn’t have the fenced-in yard or guest room on their wish list, and they want a $20,000 price reduction if a home has been on the market for more than a week. I’m telling buyers they’re not likely to see their property values decrease over time, but they may not appreciate as fast as homeowners have become accustomed to in the past few years.” 

Click here to see the report in its entirety, which includes additional chats and city-level data. 

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One of Fannie Mae’s missions is to facilitate equitable and sustainable access to homeownership and quality affordable rental units across the country which provide a stronger and more efficient housing system for all. But as a major source of mortgage financing in the U.S., the Government Sponsored Enterprise (GSE) needs to be at the cusp of affordable housing as it helps facilitate the flow of capital into the housing market by issuing and guaranteeing mortgage-related securities that are purchased by investors the world over. 

But as of late, investors have expressed interest in socially conscious investment options that allocate capital to support affordable housing and access to credit for underserved individuals. But as investors seek additional to guide their investment decisions, this additional data breaches privacy by allowing enough vectors for someone to deduce the identity of even specific borrowers. 

“As one of the largest issuers of mortgage-backed securities (MBS) in the United States, Fannie Mae plays a delicate role, one that seeks to support the mortgage consumer, the mortgage investor, and the efficient functioning of the MBS market,” said Fannie Mae in a recent blog post. “Balancing investors’ desire for information with the need to protect the privacy of the mortgage consumer requires creative solutions that consider both sets of stakeholders.” 

Knowing this, the GSE is introducing a proposed methodology for single-family social disclosure data. It aims to provide investors with insights into socially oriented lending in new ways designed to help preserve the confidentiality of mortgage consumer’s personal information. 

A Single-Family Social Index 

At the core of the design are three key outcomes we seek to achieve with the Single-Family Social Index (Social Index). 

• Prioritize the borrower. A key objective is to work to protect borrower information while seeking to meet the needs of MBS investors. 
• Allow investors to identify pools with high concentrations of loans that meet certain social criteria. Underpinning this proposal is the concept that social disclosures should facilitate the identification of MBS pools containing loans made to borrowers meeting certain social criteria such that market participants are empowered to invest in support of these lending activities. While a correlation with loan performance is likely, the proposal contemplates that it is not essential for social disclosures to optimize performance insights. At the same time, we recognize that historical performance analysis is necessary to support investor decision-making. 
• Propose a solution for the industry, not just for Fannie Mae. Create a methodology that other Agency and non-Agency residential MBS issuers may desire to adopt, which in turn we hope will drive greater standardization for social investment in residential MBS and amplify the impact of these activities, furthering support for mortgage consumers. 

The Social Index is contemplated as a scoring system comprised of three dimensions for which socially minded investors have expressed interest: income, borrower, and property characteristics. We then further define these dimensions using eight objective criteria that reflect Fannie Mae mission-focused activities, the same criteria we use to engage our lender partners to expand homeownership to these individuals in these markets. These eight criteria (Exhibit 1) would be evaluated for each loan pooled in a majority of our Single-Family MBS. Any loan meeting one or more of the eight criteria would be deemed socially oriented for the purpose of this disclosure. 

Additionally, each loan would be assigned a score between zero (0) and three (3), reflecting the count of the three dimensions whose criteria are met by that loan. The Social Index is flexible, and the underlying criteria can be adjusted based on market feedback and as the focus of single-family social lending evolves. 

To achieve the borrower privacy goals outlined above, neither the loan-level social scores, nor the borrower and geographical attributes used to generate them, would be made publicly available at the loan or pool-level. This mitigates the risk that additional disclosure elements might facilitate increased borrower identification from our disclosures or a combination of our disclosure with other third-party sources and helps avoid exposing this borrower information. 

Click here to see more of Fannie Mae’s proposed “social index” score. 

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With the housing market gradually returning to pre-pandemic norms and mortgage rates surging over 2.5 percentage points in 2022, many homeowners are choosing to renovate their living spaces rather than search for a new home. According to a new study by House Method, 55% of homeowners reported renovating a part of their home in the past year.

With affordability constraints at the forefront for many, some homebuyers and sellers have halted their searches and chosen the renovation alternative.

Key Statistics:

• Some 27% of homeowners tackled a bathroom renovation, making it the most popular room in the house to update.
• Nearly 50% of homeowners’ timelines were extended past their original expectations.
• Roughly 93% reported a better quality of life after finishing their renovations.
• An overall 80% of homeowners reported going over budget by at least $500.
• An estimated 57% of homeowners reported increases in appraisal value after a renovation.
• The largest demographic of renovators was made up of Gen X and millennials, accounting for over 55% of all renovators in the survey.

Top Reasons Why Homeowners Are Renovating Their Homes

While return on investment (ROI) is always a consideration when remodeling a home, House Method found that the majority of homeowners remodeled to increase the enjoyment of their living space. Upgrading, modernizing, and safety were also key contributing factors. In fact, 93% of those surveyed claimed that the renovations were worth the time, money, and any temporary discomfort caused, and more than three-fourths of homeowners stated that they intended to stay in their homes after renovating.

The Most Renovated Rooms in the Home

Unsurprisingly, bathroom and kitchen remodels topped the list in popularity, making up a combined 50% of all home renovations.

While these two rooms are often the most expensive renovations, homeowners reported increased functionality and usability of kitchens and bathrooms as key determiners of their enjoyment of each space.

The most popular renovations by room were:

• Bathrooms
• Kitchens
• Living rooms
• Primary or master bedrooms
• Basements

Laundry rooms, offices, and guest bedrooms were also renovated, but at a much lower rate.

Millennials completed the majority of home renovations, accounting for nearly 50% of all bathroom renovations and over 40% of kitchen renovations. Gen Z, Gen X, and Boomers accounted for the rest of the renovation market, trailing behind millennials.

Homeowner Headaches

The most common remodeling headache for homeowners involved working with contractors. Many of those polled chose not to take the traditional route of hiring a contractor to oversee or complete the work, and 60% reported not using a contractor at all. The reluctance to work with contractors may be due to a perceived skepticism about their trustworthiness. Some 30% of those surveyed attributed this fear, or a prior negative experience, to their decision to handle the work on their own.

Among those who did opt for help from a professional, 26% chose their contractor after receiving and comparing two bids, while others collected more than 15 separate bids before making a final decision.

Other common homeowner headaches included:

• Delays on the project
• Going over budget
• Securing permits for the work
• Structural problems with the home

Money Management During the Renovation Process

Budgeting plays a large part in renovating a home. Of the 1,000 homeowners polled, 32% reported budgeting $5,000-$10,000 for their reno project.

Although many homeowners set a strict budget, nearly 80% of survey participants still went over their original allotted budget. The most costly factors during the renovation process were materials and timeline delays. Others reported breaking their budget due to structural issues and design and furnishing costs.

As seen in the graphic below, 68% of homeowners ended up going over budget by $5,000 or more on their home renovation.

Although homeowners face challenges when renovating, they have not been deterred from the renovation process. Seventy-six percent of respondents plan on tackling another home renovation, whether in their current home or a new one in the future.

To read the full report, including more charts and methodology, click here.

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The Federal Housing Finance Agency (FHFA) has announced plans to establish a Federal Advisory Committee on Affordable, Equitable, and Sustainable Housing to provide advice and input regarding affordable, equitable, and sustainable housing needs, and any regulatory or policy changes that may be necessary or beneficial to address those matters.

The FHFA’s newest Committee will also offer input on barriers to access to such housing and long-term sustainability. The Committee’s activities will focus on FHFA’s regulated entities–Fannie Mae, Freddie Mac, and the Federal Home Loan Banks–and their respective roles in providing a reliable source of liquidity and funding to support housing finance in the housing marketplace.

To ensure that varying points of view are represented on the Committee, FHFA will seek members who are engaged in the financing, development, and/or administration of affordable, equitable, and sustainable housing and housing policy, and who have relevant expertise, applicable to the GSEs, or the Federal Home Loan Banks, in at least one of the following areas:

• Fair housing, fair lending, or civil rights
• Single-family lending, servicing, development, mortgages, or capital markets
• Multifamily lending, servicing, development, mortgages, capital markets, or investments
• Consumer, tenant, or community advocacy
• Market technology
• State, local, or tribal government housing policies and programs
• Academic or non-academic affiliated housing research.

“The formation of an Advisory Committee will better position FHFA to fulfill its strategic goal of supporting access to affordable, equitable, and sustainable housing,” said FHFA Director Sandra L. Thompson. “Today’s announcement exemplifies our commitment to transparency, ongoing dialogue with stakeholders and the public, and thoughtful policymaking that connects equitable access with safety and soundness.”

The Committee’s charter will commence 15 days after publication in the Federal Register, and the FHFA will solicit applications and nominations for membership in a subsequent notice in the Federal Register.

Originally Appeared Here

The Federal Housing Finance Agency (FHFA) and Ginnie Mae have issued an announcement of their updated minimum financial eligibility requirements for seller/servicers and issuers.

Prompted by rapidly changing U.S. housing finance system, these new eligibility requirements reflect Ginnie Mae’s and FHFA’s shared goals to promote confidence in approved issuers and seller/servicers and improve the safety and soundness of the U.S. mortgage-backed securities (MBS) ecosystem through all economic cycles.

“The robust collaboration of Ginnie Mae President Alanna McCargo and FHFA Director Sandra L. Thompson is a testament to their leadership and shared commitment to sustainable access to credit for American families,” said U.S. Department of Housing & Urban Development (HUD) Secretary Marcia L. Fudge. “The action announced today will ensure that we continue to address the needs of underserved communities through easy, equitable and sustained access to mortgage credit.”

Since 2020, FHFA and Ginnie Mae have coordinated their analyses, engaged in stakeholder outreach, and held an April 2022 joint listening session to consider feedback on the impact the revised requirements will have on the mortgage industry. To reduce regulatory burden and provide greater consistency and predictability for seller/servicers and issuers, FHFA and Ginnie Mae worked closely to align their respective standards and implementation timelines to the greatest extent possible. Most of these new requirements are effective on September 30, 2023.

The 2015 Eligibility Requirements became effective December 31, 2015, and have remained in effect with minor modifications. The 2015 Eligibility Requirements established minimum levels of capital and liquidity to be maintained by seller/servicers to service single-family mortgage loans guaranteed or owned by the GSEs.

“The updated eligibility requirements represent an ongoing commitment to the safety and soundness of Fannie Mae and Freddie Mac by strengthening the capacity of seller/servicers to meet the financial responsibilities associated with doing business with the Enterprises,” said FHFA Director Thompson. “FHFA and Ginnie Mae’s effort to coordinate on financial eligibility requirements provides greater consistency for Enterprise seller/servicers and Ginnie Mae issuers.”

Ginnie Mae President McCargo added, “Ensuring that Ginnie Mae issuers can acquire financing during times of stress is critical to preserving access to credit for those borrowers who depend on Ginnie Mae and our insuring agency partners. These enhanced requirements, the product of our historic collaboration with FHFA, will promote the resilience of our issuers and better enable them to operate throughout economic cycles.”

Of note, the FHFA and Ginnie Mae have extended the implementation timeline to provide mortgage servicers sufficient runway to adjust to these new requirements.

“These requirements play a substantial role in the financial planning and risk management practices of institutions that originate and service GSE- and Ginnie-backed loans,” said Bob Broeksmit, CMB, President and CEO of the Mortgage Bankers Association (MBA). “MBA has long acknowledged the importance of ensuring stability and resiliency in the mortgage sector, while also noting the need for any such requirements to be tailored appropriately to the risks presented in the market.”

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In a new Housing Perspectives blog post by Jennifer Molinsky for the Joint Center for Housing Studies at Harvard University discusses the state of senior homeownership and four major problems that she feels need to be addressed soon as more and more boomers hit retirement. 

Molinsky, the Project Director of the Housing an Aging Society at JCHS, said that in just three years, the leading edge of the boomer generation will turn 80—by 2035, the Census Bureau projects that the population 80 and over will grow to nearly 24 million people, doubling what it was in 2016. And the fact that most of these older adults will live alone and on limited incomes, and many will have other factors such as health affecting their situation. 

The demand for affordable, accessible housing, with access to in-home services and neighborhood support systems is set to soar in the coming years, but Molinsky says as of right now, the country is falling well short and is failing to meet even todays’ demands. 

“First, there is enormous unmet need for affordable rental housing for older adults. Over 10 million households headed by someone 65 and over are cost burdened (paying more than a third of their income on housing); half of these pay more than 50%,” Molinsky said. “Nearly three-quarters of renters earning under $15,000 per year are cost burdened. 

“To compensate, households often cut back on food and medical care, which can be detrimental for those with chronic health conditions,” Molinsky continued. “Renters, often on fixed incomes, are particularly at risk of rising housing costs, and have a much smaller personal safety net: in 2019, the median older renter had a net wealth under $6,000.” 

She went on to say that the latest available data revealed that there were 2.2 million older “very low-income” residents were living in “worst case housing” defined as having severe cost burdens, inadequate housing, or both. 

Thirty-six percent of income eligible seniors receive federal housing assistance, expanding rental assistance can provide needed stability to these households and help address a growing homelessness crisis among older adults. 

“Affordability challenges are disproportionately felt by older people of color,” Molinsky said. “Longstanding disparities in access to well-paying jobs and homeownership opportunities have resulted in steep gaps in homeownership with white households and greater financial insecurity, particularly for older Black and Hispanic households.” 

The three other issues seniors are facing are: 

• Second, very little of the nation’s housing stock offers even the most basic of accessibility features. Our analysis shows that less than 4 percent of homes offer a no-step entry, single-floor living, and wide enough doors and hallways to accommodate a wheelchair. Older people are also most likely to report difficulties entering, navigating, and using different parts of their homes. Support is needed for renters and property owners, as well as older homeowners, to make modifications and maintain housing in safe condition. 
• Third, the need for assistance and services that support older adults with activities of daily living and household tasks is escalating. Service-enriched affordable housing has been shown to support independence—and reduce healthcare costs—but need outstrips supply. Demand will grow for supports and services delivered to middle-income older adults who typically cannot afford assisted living settings. 
• Fourth, our research shows that many older adults live in places that lack livability features, such as neighborhood services, transportation alternatives, safe streets, and opportunities for engagement. These all contribute to wellbeing, and can even combat isolation and loneliness, both serious health issues in their own right. 

The author concluded by saying that these problems could be fixed with “comprehensive and coordinated policies” to build, preserve, and retrofit affordable housing, and to connect seniors to groups and services in their area. 

“We can ensure that the oldest people in our nation have housing that provides a sound foundation for a good quality of life. But the time to act is now—the need is already great and will only become more so.” 

Click here to read the blog post in its entirety. 

Originally Appeared Here

United States Senators Elizabeth Warren (D-Mass.) and Thom Tillis (R-N.C.), members of the Senate Armed Services Committee, United States Representatives Sara Jacobs (D-Calif.) and Stephanie Bice (R-Okla.), members of the House Armed Services Committee, and Representatives Tim Ryan (D-Ohio) and Katie Porter (D-Calif.) introduced the Military Housing Readiness Council Act, legislation that would ensure oversight and accountability on safe housing conditions for service members and military families.

The legislation would create a Military Housing Readiness Council comprised of Department of Defense (DoD) officials, service members, military families, and military housing experts to ensure ongoing oversight of deficiencies in privatized military housing. The Council’s mandate includes responsibility for full implementation of a tenants’ bill of rights, completion of the public complaint database, and public reporting on all its active military housing properties. The bill was included in the Senate’s National Defense Authorization Act for Fiscal Year 2023.

“For too long, many of our service members and military families have lived in unsafe privatized military housing with black mold, collapsed roofs, or exposed electrical wires because DoD is falling behind in proper oversight and providing safe housing to these service members,” said Senator Warren. “The bipartisan Military Housing Readiness Council Act will create a Council with a strong mandate to conduct oversight of military housing, collect public complaints, and report its work to Congress – ensuring that military families receive the safe housing conditions they deserve.”

“I have long been a proponent of safe and accessible housing for all military personnel and military families. I am proud to introduce this bipartisan legislation with my colleagues to establish a Military Housing Readiness Council within the DoD to make recommendations regarding privatized housing and support services and monitor all compliance with current law,” said Senator Tillis.

“Our military families sacrifice enough. The least we can do is provide housing to them that’s safe and hazard-free,” said Representative Ryan. “I’m proud to support the Military Housing Readiness Council Act to provide transparency and oversight over military housing, eliminate neglect and mismanagement, and ensure our service members don’t have to worry about their families’ housing while they are serving our nation.”

“Servicemembers and their families make incredible sacrifices for our country,”said Representative Porter. “We should be matching our gratitude for military families with action. Congress has repeatedly passed legislation to improve military housing conditions, but it’s clear we need to do more to hold private companies accountable to the law. I’m proud to co-lead this legislation that’ll boost oversight and better protect families in private military housing.”

Specifically, the Military Housing Readiness Council Act would do the following:

• Provide Enhanced Oversight
  • Reviews and makes recommendations to the Secretary of Defense regarding policies for privatized military housing, including inspection practices, resident surveys, landlord payment of medical bills for residents of housing units that have not maintained minimum standards of habitability, and access to maintenance work order systems.
  • Monitors the Department of Defense’s compliance with and implementation of statutory improvements to policies for privatized military housing, including the Military Housing Privatization Initiative Tenant Bill of Rights and the public military housing complaint database.
• Regularly Engage Stakeholders
  • Draws membership from the Department of Defense, every military service, officer and enlisted service members, spouses of officers and enlisted members, a representative of the International Code Council, a representative of the Institute of Inspection Cleaning and Restoration Certification, and other members to be selected by the chairs and ranking members of the armed services committees.
  • Requires the Council to meet no fewer than four times a year.
  • Makes additional recommendations to improve collaboration, awareness, and promotion of accurate and timely information about privatized military housing, including accommodations available through the Exceptional Family Member Program.
• Provide Transparency
  • Requires annual reporting to the Secretary and the congressional defense committees on the Council’s activities, including analyses of complaints of tenants of housing units, data received on maintenance response time and completion of maintenance requests, assessments of dispute resolution processes, assessments of housing inspections, and any survey results conducted by the Council.

The Military Housing Readiness Council Act is endorsed by the Military Officers Association of America, the National Military Family Association, and Armed Forces Housing Advocates.

“Establishing a Military Housing Readiness Council will provide servicemembers and military spouses with an opportunity to provide important feedback to Congress and DoD senior leaders,” said Lt. Gen. Dana T. Atkins, USAF (Ret), President and CEO of the Military Officers Association of America. “This Council will increase transparency, support accountability of the resolution process instituted by the Tenant Bill of Rights, and report on the impacts and trust in privatized housing.”

To read the full release in detail, click here.

Originally Appeared Here