President Joe Biden's administration is set to announce new regulations that will cap yearly rent increases at 10% for certain affordable housing units subsidized by the federal government. The cap will apply to property owners who are part of a tax credit program for low-income housing. The move aims to make housing more affordable and address concerns about high rents and mortgage interest rates. The announcement reflects the administration's awareness of the impact housing affordability could have on Biden's re-election hopes. The US Department of Housing and Urban Development will officially announce the new regulations on Monday [1a4198ed] [79227a38] [f73cfd3c].
This new development comes as part of the Biden administration's broader efforts to address the housing affordability crisis. The administration has already proposed investing billions of dollars to build more affordable housing units, expanding assistance for unhoused and low-income residents, and helping first-time homebuyers. The Fiscal Year 2025 budget includes $258 billion in housing investments, including the expansion of rental assistance for low-income families. The plan also seeks to expand the Low-Income Housing Tax Credits and allocate $20 billion for an 'innovation fund for housing expansion' to support the construction of affordable multifamily units. The goal is to create an estimated 2 million affordable homes, including tens of thousands in Nevada. The National Low Income Housing Coalition has praised Biden's plan as the most significant housing proposal in over 50 years. The administration also aims to pass the Mortgage Relief Credit Act, provide down-payment assistance to first-time buyers, expand housing strategies for people experiencing homelessness, and expand Housing Choice Vouchers. Nevada has already been utilizing funding from the American Rescue Plan Act to develop affordable housing. Republican Governor Joe Lombardo has urged the administration to make more federal land available for housing development, while Democratic U.S. Representative Dina Titus has expressed concerns about potential resistance from Republicans in Congress. The Biden administration is also working on measures to lower closing costs, regulate rental fees, address antitrust violations by corporations, and combat discriminatory practices in home buying [d8968928] [2f0a3ea4].
The Biden administration's efforts to address the housing affordability crisis have been met with support and criticism. Economists within the administration are calling for more aggressive federal action to drive down costs for homebuyers and renters. A White House report being released on Thursday includes proposals for an aggressive federal intervention in local politics to relax zoning restrictions that hinder affordable housing construction. The report also encourages local governments to change zoning laws. The chairman of the White House Council of Economic Advisers, Jared Bernstein, believes that many local leaders are encouraging a bigger federal role in zoning reform [e64b8e51].
While the Biden administration is taking steps to cap rent increases for certain affordable housing units, there is an ongoing debate about the effectiveness and constitutionality of rent control. Justice Clarence Thomas has left the door open for future challenges to rent control, stating that the Supreme Court's refusal to hear recent rent control cases does not mean a future challenge won't be successful. He emphasized the need for a case with specific facts and an identifiable landowner who wants to evict but can't due to rent control. Rent control programs cap rent at a certain amount and require property owners to extend leases with tenants at the capped price. The Supreme Court initially approved rent control as an emergency measure after World War I, but it has remained in place despite the end of the emergency. Rent control is seen as both bad policy and unconstitutional, creating a shortage of supply, discouraging property owners from renting or making improvements, and limiting economic growth. Public interest law firms, such as the Pacific Legal Foundation, are interested in hearing stories from those suffering from the negative consequences of rent control [e9960d3b].
The cap on rent increases for certain affordable housing units is expected to provide relief for tenants and help stabilize housing costs. It is a step towards addressing the issue of rising rents and making housing more affordable for low-income individuals and families. The new regulations will be announced by the US Department of Housing and Urban Development on Monday, and they are expected to be seen as a positive move by those concerned about housing affordability [1a4198ed] [79227a38] [f73cfd3c].
In California, two top Democratic legislators and a prominent labor group have joined the bipartisan opposition to the 'Justice for Renters' Act. The measure, if approved, would eliminate the Costa-Hawkins Rental Housing Act, which prevents stringent forms of rent control on specific types of housing. The opposition argues that the measure would give local governments unchecked power to impose extreme rent control policies and affordable housing requirements that effectively kill new housing projects. Other opponents include Assemblywoman Buffy Wicks, the California Council for Affordable Housing, the Housing Action Coalition, and the United Brotherhood of Carpenters and Norcal Carpenters Union. Sen. Toni Atkins, a longtime State Senate leader, has called for proponents to abandon the measure. The measure has qualified for the November statewide ballot [fb96d83b].