Concerns surround appointment of private equity insider to head up Federal Housing Finance Agency

As the second Trump administration takes power, concerns are mounting surrounding the influence of private equity oligarchs in federal housing policy amidst a national affordable housing crisis. 

During the January 16 hearing regarding the nomination of Scott Turner to serve as Secretary of the Department of Housing and Urban Development (HUD), Turner espoused increased private equity investment in the housing market. That same day, President Trump announced he had selected private equity executive Bill Pulte to head up the Federal Housing Finance Agency (FHFA). The FHFA oversees government-sponsored enterprises (GSE) Freddie Mac and Fannie Mae, crucial entities in the American mortgage market whose participation in thesecondary mortgage market increases the supply of money available for mortgage lending and increases the money available for new home purchases. 

The nomination of a private equity insider to such a key role in the U.S. housing regime is particularly concerning given the industry’s track record of benefitting from GSE financing while driving up rents and harming tenants. 

For example, private equity firm CIM Group purchased Southern Towers, a 2,300 unit property in Alexandria, VA, with a $346.7 million government-backed loan through Freddie Mac. CIM has received a notable amount of bad press for its mistreatment of tenants. In a letter to CIM, U.S. Senators Mark Warner and Tim Kaine expressed the concerns of tenants that they have been “subjected to eviction filings during the eviction moratorium, changes in how utilities are billed combined with rent increases that led to substantial price hikes, and unaddressed  maintenance issues that pose health and safety risks.” After several Alexandria City Council members toured the property, one council member wrote to CIM that she had brought one of her children who had a coughing fit due to mold. “We also observed holes in walls and a major flood in the elevator,” the council member wrote. “As a councilmember and mother, I do not want anyone living in conditions that compromise their health, safety, and stability.”

Private equity firms have also relied on Fannie Mae and Freddie Mac for financing purchases of manufactured housing communities across the country. According to PESP’s Manufactured Housing Tracker, as of December 2024, more than half (52%) of the private equity-owned parks identified in the tracker were financed by Fannie Mae or Freddie Mac. In contrast, Fannie Mae and Freddie Mac financed just 9% of all the manufactured home parks in the U.S. Meanwhile, tenants in some private equity-owned manufactured housing parks that were federally financed have experienced rent hikes, water shutoffs, and junk fees. 

Tenants across the country deserve far better than what their private equity landlords have offered them. If private equity is to continue to benefit from the financing offered by the federal government, we urge policymakers to adopt stronger protections for tenants to ensure housing is safe, affordable, and accessible to all.