Source: WSJ and RealPage Inc.

We have had several posts about rent control and its harmful unintended consequences, and now this:  The Wall Street Journal (as reposted by is reporting that Freddie Mac (in a new twist in controlling rent increases) is launching a new program that will offer lower-cost financing to owners who agree to cap rent increases for the life of their loans.  While similar to “rent control” it differs dramatically in that it is a voluntary arrangement between the private owner and the lender.  The program launched in early August and is available nationwide.   Eligible properties start with at least 50% of rents affordable to households earning 100% of Area Median Income or less. Borrowers then agree to limit rent growth on 80% of the units for at least the 10-year loan term.

“The initiative comes at a potentially appealing time for real-estate investors who are facing a slowing rental market. Freddie Mac will provide mezzanine debt—which is more risky but pays a higher interest rate than senior debt—at below market cost.”

Click here to read the full story on

Click here to read Freddie Mac’s release about the program.