President Joe Biden wants to curb rent increases by penalizing landlords who hike rents beyond 5% each year, but he needs the help of Congress to put the plan into action.
The Biden administration will announce the idea in Nevada on Tuesday along with a host of other housing-related policies, including an influx of funds to add more housing in Nevada and elsewhere and a plan to use public federal lands for affordable housing near Las Vegas.
The rent control plan for larger landlords with over 50 units would restrict increases to 5% or less, or those landlords who increased at higher rates would lose access to tax breaks. The administration estimated it would apply to 20m units nationwide. It would be in place for two years if Congress approves Biden’s plan, cast as a way to help renters while developers build more housing stock to meet demand and increase affordability.
The announcement comes as Republicans gather in Milwaukee for their convention to officially appoint Donald Trump as their nominee. Affordability has become a main issue for voters this election, as the price of housing and goods has increased over the past four years.
The likelihood is low that Congress would work in a bipartisan way to pass Biden’s rent control plan and deliver him a legislative victory to use on the campaign trail.
In a statement, Biden said he is determined to make housing more affordable after “decades of failure to build enough homes”.
“Today, I’m sending a clear message to corporate landlords: if you raise rents more than 5%, you should lose valuable tax breaks,” he said. “My administration is also taking action to cut red tape and repurpose public land to build more affordable homes – including thousands of new homes in Nevada – and announcing new grants to build thousands of homes from Las Vegas to Syracuse. And I’m reiterating my call for Congress to pass my plan to build 2 million new homes – to lower housing costs for good, we need to build, build, build.”
The Biden administration announced other plansto try to lower housing costs in the absence of congressional action.
The Department of Housing and Urban Development announced $325m in grants for affordable housing and neighborhood revitalization that will bring more than 6,500 units of new housing and add childcare centers and parks in communities around the country. One grant of $50m will go to the Southern Nevada Regional Housing Authority and the city of Las Vegas to restore existing units and build new ones, and will go toward small business support and an early childhood center, the agency said.
For renters in multifamily properties that are financed by federal Fannie Mae or Freddie Mac loans, the administration announced renter protections like a 30-day notice before rent increases and a five-day grace period for late payments.
Also in Nevada, the Bureau of Land Management plans to sell 20 acres of public land to Clark county, Nevada, below market value in what the administration says will allow for about 150 affordable homes to be built. Another land sale will go to the city of Henderson to build about 300 affordable housing units.
Several other agencies, including the US Forest Service and US Postal Service, were directed to explore using their land or properties for affordable housing.
“This is a crucial component of our agenda,” Neera Tanden, Biden’s domestic policy adviser, said in a press call. “The federal government is the biggest landowner in the country, and some of its land is currently underutilized or entirely unused. President Biden is asking federal agencies, from the Department of Interior to the Department of Defense, to identify opportunities to repurpose surplus property to build more affordable housing.”
