President Joe Biden on Tuesday called for Congress to pass new legislation that would provide incentives for corporate landlords to comply with limits on rent increases on existing properties.
Biden's plan would prohibit corporate landlords from raising rents by more than 5% unless the landlords agree to lose eligibility for lucrative federal tax credits, the White House announced. Announced On Tuesday, the president called on a divided Congress to pass his plan within four months of Election Day, rather than pursuing the policy through executive action.
“Under President Biden's plan, corporate landlords will be able to take advantage of the accelerated depreciation allowances available to rental property owners starting this year and for the next two years, but only if they keep annual rent increases to 5 percent or less each year,” the White House said. “This applies to landlords with 50 or more units in their portfolios, covering more than 20 million units nationwide. Exceptions are made for new construction and major renovations or renovations. This policy provides a bridge to rent stabilization as President Biden's housing development plan takes hold.” (Related: America's astronomical home prices could get even worse if Biden gets his way, experts say)
Experts say Biden administration's housing measures could add fuel to the fire of the housing shortagehttps://t.co/Rmmccx0ana
— Daily Caller (@DailyCaller) June 26, 2024
The Federal Housing Finance Agency (FHFA) also recently Announced The Federal Housing Finance Corporation announced it would implement new measures to “crack down” on landlords whose multifamily tenants were funded with loans acquired by Fannie Mae and Freddie Mac, including requiring 30-day notice of rent increases, 30-day notice of lease expirations, and a five-day “grace period” before imposing surcharges for overdue rent.
Additionally, the Bureau of Land Management (BLM) Intended The White House said it plans to sell dozens of acres of federal land in Nevada's Las Vegas Valley at below market rates to developers who will build affordable housing for families making less than 80 percent of the area median income.
The White House has touted the plan as a measure to address the U.S. housing shortage and ease pressure on renters, but critics say the plan, if passed by Congress and enacted into law, would further distort the U.S. housing market.
“Just when you thought Biden's economic policies couldn't get any more destructive, he unveils a nationwide rent control plan. It doesn't take an economist to see that rent control exacerbates the problems it is trying to solve by disincentivizing housing construction and reducing housing supply and quality,” Job Creators Network Foundation president Elaine Parker said in a statement about the announced plan. “This plan is another example of the Biden Administration's extreme expansion of executive power, imposing even more federal mandates on small businesses in the housing sector who already face high interest rates, insurance and other costs. The solution to affordable housing is simple: build, build, build. Unfortunately, over-regulation makes this goal extremely expensive, if not impossible to achieve.”
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