Broadband Access in Rental Housing: Navigating Reform and Ensuring Equity
Broadband affordability is no longer a convenience for renters; it’s a necessity for employment, education, and healthcare. As federal programs designed to support connectivity are revisited, the rental housing sector is actively working to ensure reforms reflect how broadband is delivered in modern communities.
The Universal Service Fund: A Shifting Landscape
The Universal Service Fund (USF), administered by the Federal Communications Commission (FCC), has historically supported affordable communications services nationwide. Originally focused on telephone service, the USF now includes broadband access through programs like Lifeline, which provides monthly assistance to low-income households. The structure and administration of the USF directly impacts millions of rental housing households.
Reconstituting the USF Working Group: A Bipartisan Opportunity
The U.S. Senate and House of Representatives recently announced the reconstitution of the Universal Service Fund Working Group, which last convened in 2023. This bipartisan and bicameral group is tasked with examining potential reforms to modernize the USF and ensure its long-term sustainability. This presents a key opportunity to address structural issues that have unintentionally excluded renters from affordability programs.
The Challenge of Renter Eligibility and Bulk Billing
A significant concern for the rental housing industry centers on renter eligibility for broadband assistance programs like Lifeline. Many apartment communities utilize bulk billing or managed Wi-Fi arrangements, where connectivity is included in rent or charged as a disclosed amenity. These models offer benefits like reduced upfront costs, consistent service quality, and lower overall costs through scale, particularly in senior, student, and workforce housing.
However, previous programs, such as the Affordable Connectivity Program, often deemed renters in bulk-billed communities ineligible because they didn’t receive a separate retail internet bill. This excluded households that arguably needed assistance the most.
Industry Advocacy for Equitable Access
In response to the working group’s reconstitution, the National Multifamily Housing Council (NMHC), the National Apartment Association (NAA), and the Real Estate Technology & Transformation Center (RETTC) submitted a joint comment letter. The letter urges policymakers to address the eligibility gap and ensure renter access under any reformed USF framework.
The organizations emphasize that bulk billing and managed Wi-Fi are affordability enablers, not barriers. They propose mechanisms allowing benefits to flow through property owners and be credited to rent or community broadband fees, ensuring equitable access regardless of service structure. The letter also stresses the importance of technology-neutral policies that align with modern housing and broadband delivery models.
State-Level Scrutiny of Bulk Billing Agreements
USF reform isn’t happening in a vacuum. Bulk billing arrangements are facing increasing scrutiny at the state level, adding complexity to the affordability conversation. In California, AB 1414 seeks to restrict bulk billing agreements, raising concerns about unintended consequences for affordability and access. Similar legislative activity is emerging in other states, like Virginia (HB 1709) and New York (S 7601), potentially undermining the cost efficiencies of community-wide broadband.
Did you know? Whereas intended to promote consumer choice, restricting bulk billing could actually reduce affordability and access, especially when combined with federal assistance programs.
The Intersection of Federal and State Policies
Aligning federal broadband policy with the realities of rental housing is crucial. Bulk billing and managed Wi-Fi are pro-consumer solutions that support affordability, predictability, and digital inclusion. Excluding renters in these communities from assistance programs doesn’t increase choice; it reduces equity.
Looking Ahead: Collaboration and Expertise
NMHC, NAA, and RETTC are committed to working with the Universal Service Fund Working Group, providing data, real-world examples, and industry expertise. This reflects the rental housing sector’s broader commitment to policies that expand broadband access, preserve affordability, and recognize the diversity of housing and connectivity models.
Pro Tip: RETTC members can access the Bulk Billing Toolkit for local advocacy support.
FAQ: Broadband Access in Rental Housing
Q: What is the Universal Service Fund (USF)?
A: The USF is a federal program that supports affordable communications services nationwide, including broadband access.
Q: Why is renter eligibility for broadband assistance important?
A: Many renters rely on affordable broadband for work, education, and healthcare. Excluding them from assistance programs exacerbates digital inequities.
Q: What is bulk billing, and why is it beneficial?
A: Bulk billing is when broadband is included in rent or charged as an amenity. It reduces upfront costs and provides consistent service quality.
Q: What can property owners do to advocate for equitable broadband access?
A: Engage with industry organizations like NMHC, NAA, and RETTC, and utilize resources like the RETTC Bulk Billing Toolkit.
As federal and state discussions continue, the intersection of USF reform, bulk billing, and renter eligibility will remain a critical policy area to watch, with significant implications for residents, housing providers, and the future of digital equity in rental housing.
Daria Dudzinski is Advocacy Director for the Real Estate Technology & Transformation Center (RETTC) and can be reached at [email protected].
Valerie M. Sargent is a multifamily speaker, trainer and executive consultant, and is the multifamily news correspondent for Broadband Communities. Contact her at http://www.valeriemsargent.com.
