Biden Unveils Rent Cap Plan Amid Housing Crisis: Corporate Landlords Face 5% Limit
Biden’s Housing Proposal Targets Corporate Landlords Amid Severe Housing Crisis
President Joe Biden unveiled a new housing plan on Tuesday aimed at addressing the nation’s severe housing affordability crisis, according to the published article of BUSINESS INSIDER. The plan proposes that corporate landlords those owning more than 50 rental units cap annual rent increases at 5% for the next two years. If these landlords exceed this cap they risk losing significant tax benefits specifically depreciation deductions. The initiative comes in response to rising concerns about housing costs and aims to provide relief to renters who have seen rents soar by 26% since early 2020, according to a Harvard Joint Center for Housing Studies report. The announcement was made during Biden’s speech in Nevada a state hit hard by housing cost increases. Alongside the rent cap proposal Biden revealed plans to sell federal land in Nevada for affordable housing development including 20 acres near Clark County and 18 acres near Henderson.
The proposal requires congressional approval a challenging feat before the upcoming presidential election. This measure is part of Biden’s broader efforts to increase housing supply and affordability through federal grants, loans, and incentivizing new construction and conversions of office buildings into residential units. This housing plan comes at a turbulent time in Biden’s campaign following a failed assassination attempt on former President Donald Trump and internal party calls for Biden to step down after a shaky debate performance. Amid these political challenges the proposal highlights Biden’s continued focus on housing affordability a critical issue as nearly half of all tenant households were cost-burdened in 2022. The administration’s commitment to pro-housing policies and addressing the housing crisis remains a priority as evidenced by recent funding initiatives announced by Vice President Kamala Harris and Treasury Secretary Janet Yellen.
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President Biden’s New Housing Plan Aims to Tackle Severe Housing Crisis with Rent Caps
Furthermore, Biden’s housing plan underscores the urgency of addressing the housing affordability crisis exacerbated by a severe shortage of homes nationwide. The proposal targets corporate landlords who have utilized rent-setting algorithms to inflate rents contributing to the financial strain on renters already burdened by high housing costs. By offering tax incentives tied to rent caps the administration aims to curb excessive rent increases and ensure more stable housing costs for Americans facing economic uncertainties. The plan aligns with Biden’s broader housing policy agenda which includes initiatives to boost affordable housing supply and support renters through expanded tax credits and housing choice vouchers.
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