The U.S. government could take on a new title — landlord.
According to the AP, the Obama administration filed a federal “request for information” yesterday, seeking ideas on how to turn some of the 248,000 foreclosed homes owned by government-controlled Fannie Mae and Freddy Mac into rental properties.
Only 70,000 of the properties currently owned by the government are currently on the market.
With increasing demand in the rental market, the administration thinks offering the properties as rentals might do more than bring the government a new source of income.
According to Edward DeMarco, acting director of the Federal Housing Finance Agency, renting foreclosed properties could minimize “credit losses and help stabilise neighborhoods and home values.”
This request for information also sought ideas on ways previous owners could rent out foreclosed properties and methods to encourage current renters to lease-to-own.
The New York TImes explains that the government will solicit responses to the information request until September 15, at which point it will decide whether or not to pursue any of these programs.