Here’s Everything Tenants Need to Know about Biden’s Plan to Limit Rent Hikes

Here’s Everything Tenants Need to Know about Biden’s Plan to Limit Rent Hikes
Cover Image Source: U.S. President Joe Biden | Photo by Alex Wong | Getty Images

This week, the Biden administration took action to restrict rent increases in designated affordable housing units across the nation. While certain housing experts expressed their disapproval regarding the decision, advocates for tenant rights welcomed the new regulation. They believe that by limiting rent hikes to 10%, many individuals will have improved chances of maintaining their homes.

Image Source: US President Joe Biden gives a speech at Intel Ocotillo Campus | Photo by Rebecca Noble | Getty Images
Image Source: US President Joe Biden gives a speech at Intel Ocotillo Campus | Photo by Rebecca Noble | Getty Images

Also Read: Marin Residents Lost $33 Million to Online Investment Scams Last Year: FBI

Experts' reactions and opinions remain varied. "The rent is still too damn high, but this cap will provide stability to more than a million tenants," said Tara Raghuveer, the director of the National Tenant Union Federation.

However, Bob Brooksmith, president and CEO of the Mortgage Bankers Association, has a different view. "Rent control has consistently proven to be a failed policy because it prevents new construction, distorts market values, and reduces the quality of rental housing—which is what is needed in many of the country's markets," he said.

Furthermore, the rent cap applies to apartments subsidized by the Low-Income Housing Tax Credit (LIHTC), the nation's largest government program for affordable housing. The National Low-Income Housing Coalition estimates that around 2.6 million rental properties in the United States are currently subject to LIHTC income and rent limitations.

A sign advertises an apartment for rent along a row of brownstone townhouses in the Fort Greene | Getty Images | Photo by Drew Angerer
Image Source: A sign advertises an apartment for rent | Getty Images | Photo by Drew Angerer

Also Read: Woman Explains Why Buying a House Has Financially Ruined Her in Viral Video

Executive director of the National Housing Law Project, Shamus Roller, advised finding out if you're in one of these units by asking your landlord or looking for the terms "tax credit" or "LIHTC" in your lease. You can also get information from your state housing agency; some of them offer websites with interactive maps and lists of LIHTC homes.

Alternatively, you can request documentation from your local recorder's office. "All LIHTC properties are subject to a regulatory agreement that must be recorded against the property," he added.

Also Read: Woman Hits Jackpot Worth Half a Million; Credits Tarot Card Prediction for Her Win

Housing advocates cautioned that while the LIHTC public database exists, it may not be up to date. The National Housing Protection Database is another resource available to tenants.

Image Source: istockphoto | Perawit Boonchu
Image Source: istockphoto | Photo by Perawit Boonchu

The U.S. The Department of Housing and Urban Development (HUD) sets annual income limits and sets the maximum rent an owner can collect from a LIHTC tenant. "If a tenant suspects that their landlord is ignoring the new rules, they should alert their property owner to the government’s updated policy and provide them with a copy of the official HUD announcement," Roller said.

"This policy can be difficult to understand and explain, so we highly recommend that tenants contact their local free legal services provider to help determine if the cap applies to them and if so, challenge unlawful rent hikes," he added.

Image Source: Pexels|Photo by Rdne Stock Project
Image Source: Pexels | Photo by Rdne Stock Project

While tenant advocates celebrate the rent cap as a safeguard against sharp rent increases, as reported by The Washington Post, it also sparks concerns regarding its effects on the availability of affordable housing and broader housing market dynamics.

This regulatory move aligns with Biden's overarching strategy to tackle the housing affordability crisis. Just last week, the president unveiled a plan to build 2 million new homes, aimed at addressing the supply shortage that contributes to rising housing costs. Part of this initiative, the Neighborhood Homes Tax Credit, seeks to stimulate the construction or preservation of 400,000 starter homes.

More from MARKETREALIST

Man Accuses Employer of Making up Reasons to Fire Him Ahead of Bonus Payout; Internet Reacts

Manager Asks Woman With Stage 4 Cancer to Return to Work; Triggers Online Outrage

Share this article:  Here’s Everything Tenants Need to Know about Biden’s Plan to Limit Rent Hikes