President Donald Trump slammed the Obama administration’s policy to allow homeowners to rent furnished apartments and other homes from a local government contractor.
The Trump administration on Wednesday issued a memo ordering the Federal Housing Administration to stop issuing permits for the occupancy of such homes, which critics say are expensive for taxpayers and have become the mainstay of the housing market.
Trump issued a statement saying that the move was “very bad for the taxpayer, for homeowners and for communities across the country.”
“President Trump will be working to address the issue with HUD to ensure that the agency takes all appropriate action to stop this bad policy from occurring,” the president said.
“President Obama and HUD’s policies have created the largest housing bubble in U.S. history.
We will be watching closely to see if they are allowed to continue to create this problem for taxpayers.”
The housing market is still suffering from the aftermath of the massive subprime mortgage crisis that led to a collapse of home values and the global recession that followed.
The market is expected to rebound in coming weeks, but Trump’s administration has warned that the housing bubble could burst as soon as next year.