Rep. Takano Applauds FTC Action Against Wall Street Landlords in Riverside County
WASHINGTON, D.C. — Today, the Federal Trade Commission announced actions to reign in the deceptive business practices of Invitation Homes, the country’s largest landlord of single-family homes. The unlawful practices include deceiving renters about lease costs, charging undisclosed junk fees, failing to inspect homes before residents moved in, and unfairly withholding tenants’ security deposits when they moved out.
Riverside County has dozens of single-family rental properties owned by Invitation Homes.
Invitation Homes has agreed to a proposed settlement order that would require the company to turn over $48 million to be used to refund consumers harmed by its actions. The corporate landlord will also be required to clearly disclose its leasing prices, establish policies and procedures to handle security deposit refunds fairly, and stop other unlawful behavior.
“All Americans, especially renters, know that housing costs are up,” said Congressman Mark Takano. “Wall Street landlords have selfishly increased the costs of housing through deceptive means at the expense of working families trying to make ends meet. Under the leadership of the Biden-Harris Administration and Federal Trade Commissioner Lina Kahn, some renters in Riverside County will start to feel relief. Renters who were preyed upon through surprise fees, withholding security deposits, or have had eviction notices filed against them will receive justice for these un-American business practices.”
“Invitation Homes, the nation’s largest single-family home landlord, preyed on tenants through a variety of unfair and deceptive tactics, from saddling people with hidden fees and unjustly withholding security deposits to misleading people about eviction policies during the pandemic and even pursuing eviction proceedings after people had moved out,” said FTC Chair Lina M. Khan. “No American should pay more for rent or be kicked out of their home because of illegal tactics by corporate landlords. The FTC will continue to use all our tools to protect renters from unlawful business practices.”
This the latest action Rep. Takano has led to lower the price of rent for families. Last Congress, Rep. Takano co-led the Stop Wall Street Landlords Act. This bill would deter future institutional investments in these properties by imposing a tax on existing and future acquisitions of single-family homes. It also prohibits Fannie Mae, Freddie Mac and Gennie Mae from purchasing and securitizing mortgages held by large institutional investors who use debt to buy single family homes and rent them out for optimal profit. Rep. Takano is working to reintroduce this legislation with Reps. Ro Khanna and Katie Porter in the coming weeks.
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