'Slap in the face': Lobbyists fume at Biden eviction reversal

According to Jerry Howard, CEO of the National Association of Home Builders, whiplash was felt by the industry. Howard's group comprises approximately 3,000 property managers who were affected by the original moratorium.Howard stated that it was a major blow to the housing industry as well as the people who shelter America.The latest evidence of a leftward power shift in Democrats is the eviction ban battle, currently advancing through the courts. This has led to some industry groups struggling to protect their members interests in Washington. Lobbyists had Biden's word on evictions. However, the president suddenly changed his mind.Diane Yentel is a leading advocate for affordable housing and led efforts to convince Biden that the ban was reinstituted. She said that realtors, builders, and associations of apartment owners wasted millions of dollars and goodwill during a public battle to allow landlords to evict tenants in a global pandemic.These trade associations painted their members in the most negative light possible, while failing to realize their goal of overturning moratoriums over the past year, stated Yentel (president and CEO of National Low Income Housing Coalition).The National Association of Realtors, the largest housing industry group, is over 100 years old. It has its headquarters located just blocks from Capitol. According to OpenSecrets data, it has spent nearly $700,000,000 to influence Washington policy since 1998. It is second only to the U.S. Chamber of Commerce in terms of spending.The Realtors group has a history of representing real estate interests in every area. It was able to pressure lawmakers to keep a tax deferral benefit called like-kind exchanges in 2017 tax reform legislation. This also stopped an attempt to overhaul the National Flood Insurance Program rates to homeowners that same year. Even though multiple attempts were made to kill it, carried interest is still part of the tax code. This is largely because it is important for real estate investment partnerships.After the Centers for Disease Control and Prevention imposed the eviction moratorium in September, the association led the fight against it. The ban would prevent 28 percent of the 1.4 million members from renting out their property. The CDC argued that the moratorium was necessary to prevent public health risks due to people crowded into shelters and doubling up with their friends during the pandemic.Landlords still had to pay their bills including property taxes and utilities, despite the moratorium creating financial hardship.Howard stated that although they aren't getting any income, they still provide heat, electricity, and water.The ban was blocked by local chapters of the association late last year. The industry successfully lobbied for federal assistance to landlords that would keep renters in their homes. However, only a small fraction of the $46.5 million has reached its intended recipients due to bottlenecks at state and local levels.In June, the industry's struggle seemed to be paying off. The Biden administration extended its moratorium until July 31, triggering a Supreme Court decision. This was bolstered by Realtor lawsuits. In a 5-4 decision, the high court maintained the prohibition. However, Justice Brett Kavanaugh, a conservative justice, stated that he only supported the ruling due to the expiration date. Kavanaugh stated that he felt the CDC had overstepped its legal authority in imposing the moratorium.On July 29, the Biden administration announced that the moratorium would be allowed to expire three days later, and it was up for Congress to renew it.House Speaker Nancy Pelosi, along with other Democratic leaders, made the last-minute announcement to get legislation passed before members left for August recess.The housing industry reacted strongly to the push, with 14 groups representing developers, property owners and lenders calling on lawmakers to remove the federal restrictions on property operation nationwide and allow for more rental aid distribution.After more than a dozen House Democrats resisted legislation that would have extended the ban and prevented it from being voted on, the lobbying seemed to be paying off. The episode revealed a growing divide between top Democrats and housing lobbyists.I now know there is a strong lobbying effort. The Realtors have arrived and put out a strong letter last night. Some people simply say, "Oh my God! I don't want the Realtors to cross me," Waters stated July 30 while trying to get support for the ban.Waters advised her colleagues to not be intimidated by the interests she was well-informed about. They're in mine committee, they work with me," she stated, referring to her housing policy committee's jurisdiction.The PAC of the Realtors contributed almost $2 million to House Democratic Candidates in 2020, including $10,000 each to Waters and Pelosi.The White House remained firm for a few days after the Hill deadlock. After being under intense pressure by fellow Democrats, Biden changed his mind. Bush's progressives attracted national attention when they camped for several days on Capitol Steps to protest the expiration of the ban.Tuesday's announcement by the CDC was a targeted eviction ban. It would only apply to high Covid-19 transmission areas, currently around 80 percent of counties.According to Bob Pinnegar, President and CEO of the National Apartment Association, landlords felt like pawns in the Democratic caucus.Cindy Chetti, Senior Vice President at the National Multifamily Housing Council, stated that the odds were against the industry because of the outrage surrounding the bans expiration.Chetti stated that we did lobby a lot and did get into gear. I don't think there was anything more we could have done. ... It is a comfort to know that we did everything possible.Wednesday's ban was blocked by the Georgia and Alabama chapters of the Realtors Association. These same groups were behind the legal challenge to the previous moratorium. The Supreme Court questioned the authority of the CDC.When asked if the Realtors considered the new eviction ban a loss in lobbying, a spokesperson said that the Realtors had quashed the House vote last week.Patrick Newton, a Realtor spokesperson, said that when House leaders attempted to extend the moratorium legislatively last Wednesday, our members reached out and made their voices heard to Congress. The issue is now back before the courts because Congress did not vote.Housing lobbyists expressed anger at being beat by progressive upstarts, affordable housing organizers, on one of their most important fights in years. Lobists warned that the ban's reimposition could cause huge financial losses to landlords, which includes mom-and-pop property owner who were found in almost every district.Howard from the association of home builders said that these people have been keeping their tenants housed for the past year and a quarter with their own money. They're even being made to look bad.