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MBA Blasts Plan to Impose Rent Control on LIHTC Properties
Ahead of new regulations expected to be announced on Monday, the Mortgage Bankers Association (MBA) on Friday stated its opposition to the Biden administration’s plan to impose a 10% limit on annual rent hikes at properties supported by the Low-Income Housing Tax Credit (LIHTC). In a statement, MBA president and CEO Bob Broeksmit said, “Now is not the time to repeat a policy widely recognized as a failure at the local, national, and global level by nearly every economist.”
Broeksmit characterized the LIHTC program as “the federal government’s most successful tool to construct and rehabilitate housing for low- and moderate-income households. If the administration imposes unworkable rent caps on LIHTC programs, it will severely suppress – if not kill – the program. Such a move is puzzling and contradicts many of the Administration’s other efforts to increase affordable rental housing.
“Rent control has consistently proven to be a failed policy that discourages new construction, distorts market pricing, and leads to a degradation of the quality of rental housing – the exact opposite of what is currently needed in markets throughout the country,” Broeksmit continued, adding, “Increasing the supply of affordable rental housing – not rent control – is the best way to solve the ongoing affordability crisis.”
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- ◦Policy/Gov't
