In a move to address the escalating rental market that has burdened Americans, President Biden has unveiled a series of initiatives aimed at curtailing rent hikes and increasing the availability of affordable homes. According to the White House's recent announcement, an ultimatum has been set forth for corporate landlords – they may cap rent increases at 5% or forfeit critical tax benefits. This decision targets landlords overseeing more than 50 units, a measure that impacts over 20 million units nationwide.
Expanding beyond the confines of rent control, the President is advocating for a repurposing of public lands. This strategy would introduce approximately 15,000 affordable housing units in Nevada alone. It's a push for an expansive Biden-Harris Housing Plan, which ambitiously aims to erect 2 million homes and unlock homeownership for millions via a $10,000 mortgage relief initiative. Highlighting progress, the White House statement noted that housing construction rates have surged by 17% compared to previous years.
The inability to pass significant housing reform has been attributed to Republican opposition in Congress. While the Republican bloc in the Senate currently halts a bill that could lead to the formation of 200,000 affordable homes, the President's agenda takes on a stark contrast by targeting price-fixing tactics of corporate landlords and enhancing housing energy efficiency. These plans coincide with the Biden Administration's efforts to curb rising rents, an agenda outlined by the Administration as a fundamental step towards fair housing costs.
New precautions to protect renters are being implemented by the Federal Housing Finance Agency (FHFA). These include a mandated 30-day notice before any rent hikes and an allowance of a 5-day period before charging late fees on due rent. Moreover, the Biden Administration's measures extend to the repurposing of federal and other public lands for the construction of cost-constrained housing, tapping into extensive resources owned by entities from the federal government to faith-based institutions.
The commitment doesn't end at policy proposals; $325 million in Choice Neighborhoods grants aim to build new affordable units and render economic benefits to communities around the country. For instance, the Southern Nevada Regional Housing Authority and the City of Las Vegas will restore and create hundreds of affordable housing units through a $50 million grant, as mentioned in the White House's fact sheet. These moves reflect a concerted effort to intervene in the housing market dynamics, in turn, making the prospect of renting a more viable option for a greater number of Americans.
