Tenants Mount Union Push Against Capital Realty Group

For years, affordable housing tenants have organized one building at a time. Now, renters across multiple states are trying to go bigger, targeting an entire landlord’s portfolio.

More than 1,000 residents in complexes owned by Capital Realty Group are moving to unionize in what organizers call the first coordinated effort of its kind, Bloomberg reported.

The Tenant Union Federation, a national network of renters, is leading the campaign, seeking to negotiate not just property-specific fixes but portfolio-wide agreements with the New York-based private equity firm, which owns more than 22,000 federally subsidized units in 28 states.

Capital, led by principals Moshe Eichler and Sam Horowitz, built its holdings by acquiring and rehabbing distressed affordable housing. It ranked fifth nationwide in new affordable acquisitions last year, according to Affordable Housing Finance.

The firm didn’t comment on the organizing drive, but tenants say they want commitments on maintenance schedules, recognition of unions and protection against retaliation.

The push comes after residents at Capital properties in Kansas City, Detroit, Louisville and New Haven launched majority unions this month, citing broken appliances, water leaks and other deferred maintenance.

Tenants say Eichler briefly met with resident groups last month but stopped talks once the organizing spread. Advocates argue that sectoral bargaining — common in labor movements but rare in housing — could force large landlords to negotiate across state lines, particularly in regions where local tenant protections are thin.

For owners, the risks go beyond reputation. While tenant complaints are hardly unique in affordable housing, a coordinated union campaign could complicate management, slow repositioning efforts and create precedent for other operators in the space.

Landlord attorneys note that outcomes will depend heavily on state law: in tenant-friendly jurisdictions, unions could gain traction, while in states with broad landlord rights, owners may have more leverage to resist.

Even so, the campaign underscores how tenant activism is scaling alongside landlord consolidation. Private equity landlords control just 10 percent of the national rental market, but in smaller metros with limited supply, a single owner like Capital can dominate the affordable sector.

That concentration is exactly what makes them a prime target for organizers and a potential flashpoint for the industry.

— Holden Walter-Warner