Published by REALTOR.com | July 12, 2024
President Sparks Confusion With Vow To Crack Down on Rent Hikes at NATO Press Conference
President Joe Biden appeared to announce new plans to crack down on rent hikes at his press conference following the NATO summit in Washington, DC.
During the wide-ranging press conference, Biden sought to allay fears that his reelection campaign is unviable after a disaster debate performance against Donald Trump last month. While commenting on the economy, Biden slipped in the apparent campaign vow.
“It’s time — for example, if I’m reelected, we’re going to make sure that rents are kept at 5% increase, cor- — corporate rents for cor- — apartments and the like and homes are limited to 5%,” he said, according to the official White House transcript.
Biden’s comments could indicate that he plans to tighten a 10% annual rent increase cap that the Department of Housing and Urban Development previously announced in April, which applies only to affordable units financed through the Low Income Housing Tax Credit program.
But the president’s phrasing sparked speculation in some housing policy quarters that he is preparing to propose a broader national cap on “corporate rents” for traditional housing units.
The White House declined to offer specifics clarifying Biden’s remark, but pointed to numerous steps the administration has taken to protect renters, including emergency rental assistance to 8 million renters during the COVID-19 pandemic and proposals to crack down on junk rental fees and price-fixing.
“The President has taken a number of actions to cap rents and crack down on price gouging by corporate landlords, and will continue to take action to build on these efforts,” White House spokesperson Jeremy M. Edwards told Realtor.com® in a statement.
It is possible that Biden simply misspoke about the administration’s previously announced 10% rent cap on LIHTC units, misidentifying the level of the cap in question.
The prior policy on LIHTC units capped rent increases at either 5% or double the percentage change in national median income, whichever is higher. The Biden administration’s new rule limits any increases to 10%, regardless of how quickly incomes rise.
LIHTC (often pronounced “ly-tec”) is a federal tax credit program to encourage private investment in affordable housing projects. The program is responsible for at least 3.65 million affordable housing units placed in service since 1987, according to HUD.
However, housing policy experts say it is also possible that Biden’s comment inadvertently revealed previously unannounced plans for a broader crackdown on what the administration calls “rent gouging by corporate landlords” in traditional rental units.
