PaperDabba News Desk: July 17, 2024
President Biden has unveiled a series of initiatives aimed at reducing housing costs, a significant concern for millions of Americans. These actions include limiting rent increases and building more homes to address the affordable housing crisis.
Corporate Landlords and Rent Caps
President Biden is urging Congress to pass legislation that will force corporate landlords to cap rent increases at 5%. This measure aims to curb the excessive rent hikes that have burdened many tenants. Landlords who fail to comply risk losing valuable federal tax breaks. This move targets landlords with over 50 units, covering more than 20 million rental units nationwide.
Additionally, the Federal Housing Finance Agency (FHFA) will enforce new protections for renters in multifamily properties financed by Fannie Mae and Freddie Mac. These protections include a 30-day notice before rent increases, a 30-day notice on lease expiration, and a 5-day grace period before imposing late fees.
Repurposing Public Land for Housing
The administration is taking significant steps to repurpose federal land for affordable housing. The Bureau of Land Management (BLM) is facilitating the creation of thousands of affordable housing units in Nevada. For example, BLM plans to sell 20 acres of land to Clark County for $100 per acre, enabling the development of nearly 150 affordable homes. Additionally, BLM will sell 18 acres to the City of Henderson, potentially providing 300 affordable housing units.
The United States Forest Service (USFS) will lease land to build workforce housing in high-cost areas, starting with projects in Steamboat Springs, Colorado, and Ketchum, Idaho. The United States Postal Service (USPS) will also pilot the repurposing of surplus properties for housing, adding to the efforts to increase affordable housing stock.
Building More Homes and Revitalizing Neighborhoods
The Biden-Harris Administration is committed to building more homes and revitalizing neighborhoods. The President’s Housing Plan aims to construct 2 million homes and provide $10,000 in mortgage relief to millions of Americans. The administration’s efforts have already led to the highest rate of new housing starts in over 50 years, with a 17% increase compared to the previous administration.
HUD is investing $325 million in Choice Neighborhoods grants to build new deeply-affordable homes, spur economic development, and revitalize neighborhoods across the country. These grants will build over 6,500 units of new housing, support small businesses, and create new parks and childcare centers. Notable projects include a $50 million grant to the Southern Nevada Regional Housing Authority and the City of Las Vegas to restore 235 affordable housing units and build 400 new units.
Challenges and Republican Opposition
Despite these initiatives, President Biden faces significant opposition from Congressional Republicans. They have blocked efforts to expand rental assistance and build more homes. Senate Republicans are currently blocking a bill that passed the House with bipartisan support, which would help build 200,000 affordable homes. The previous administration also secured tax subsidies for corporate landlords, which the current administration aims to counteract by cracking down on price gouging.
These comprehensive measures highlight President Biden’s commitment to addressing the housing crisis, ensuring that affordable housing is within reach for all Americans.
