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Biden Calls for Imposing Apartment Rent Caps on “Corporate Landlords”
President Joe Biden on Tuesday called on Congress to enact legislation that would give “corporate landlords” the choice of either limiting annual apartment increases to 5% or risking the loss of faster depreciation write-offs. The proposal was one of three Biden announced on Tuesday that are intended to address rental affordability.
The rent cap would apply to landlords with more than 50 units in their portfolio, covering more than 20 million units across the country. It would include an exception for new construction and substantial renovation or rehabilitation, and would apply for the next two years.
“While the prior administration gave special tax breaks to corporate landlords, I’m working to lower housing costs for families,” Biden said in a statement. “Republicans in Congress should join Democrats to pass my plan to lower housing costs for Americans who need relief now.”
In a statement, the Housing Solutions Coalition said, “This proposal amounts to typical election year rhetoric. Rent caps, also known as rent control, have never been viable solutions to the ongoing affordability challenges facing our nation’s rental housing market. These flawed policies often exacerbate housing shortages, leading to higher rents and lower quality housing. As the country faces a massive housing deficit, common sense solutions are desperately needed that prioritize building more housing, not erecting additional barriers to housing development.”
Other key points in the plan Biden announced Tuesday include repurposing surplus federal, state and local government land to build more affordable housing, and $325 million in HUD Choice Neighborhood grants to build or rehabilitate low-income units.
- ◦Policy/Gov't
