iden’s Bold Move to Tackle Rising Rents: Congressional Support Needed
President Joe Biden has introduced a plan aimed at curbing rent increases by penalizing landlords who raise rents by more than 5% annually. However, this initiative requires Congressional approval to be implemented.
The Biden administration will unveil this proposal in Nevada on Tuesday, alongside other housing policies. These include a significant funding boost to increase housing supply in Nevada and other states, as well as a strategy to utilize federal lands for affordable housing near Las Vegas.
The proposed rent control measure targets larger landlords with over 50 units, limiting rent hikes to 5% or less. Landlords exceeding this threshold would lose access to tax incentives. The administration estimates that this policy would impact approximately 20 million units nationwide and would be effective for two years, contingent on Congressional approval. This plan is presented as a temporary relief for renters while new housing developments aim to meet demand and enhance affordability.
This announcement coincides with the Republican convention in Milwaukee, where Donald Trump is set to be officially nominated. Voter concerns about affordability, particularly the rising costs of housing and goods, have become a central issue in this election cycle.
Despite the plan’s potential benefits, bipartisan support in Congress appears unlikely, posing a significant challenge for Biden to secure a legislative win.
President Biden expressed his commitment to making housing more affordable, citing a prolonged failure to build sufficient homes. “Today, I’m sending a clear message to corporate landlords: If you raise rents more than 5%, you should lose valuable tax breaks,” Biden stated. He also highlighted efforts to cut bureaucratic red tape and repurpose public land to construct more affordable homes, including thousands in Nevada. Biden reiterated his call for Congress to support his plan to build 2 million new homes, emphasizing the need to “build, build, build” to reduce housing costs.
In addition to rent control, the Biden administration announced various measures to lower housing costs in the absence of Congressional action. The Department of Housing and Urban Development (HUD) revealed $325 million in grants for affordable housing and neighborhood revitalization. This funding is expected to create over 6,500 new housing units and enhance community amenities such as childcare centers and parks.
One notable grant of $50 million will be allocated to the Southern Nevada Regional Housing Authority and the city of Las Vegas. This funding will support the renovation of existing units, construction of new ones, small business development, and an early childhood center.
For renters in properties financed by federal Fannie Mae or Freddie Mac loans, the administration introduced protections, including a 30-day notice before rent increases and a five-day grace period for late payments.
Additionally, the Bureau of Land Management plans to sell 20 acres of public land to Clark County, Nevada, below market value, facilitating the construction of approximately 150 affordable homes. Another land sale in Henderson will enable the building of about 300 affordable housing units.
Several federal agencies, including the US Forest Service and US Postal Service, have been directed to explore using their lands or properties for affordable housing projects.
Neera Tanden, Biden’s domestic policy adviser, emphasized the significance of this initiative, noting that the federal government is the largest landowner in the country. “President Biden is asking federal agencies to identify opportunities to repurpose surplus property to build more affordable housing,” Tanden stated.
This comprehensive approach underscores the administration’s commitment to addressing the housing crisis and making homes more affordable for Americans.