Biden administration launches new initiatives to decrease housing expenses
Date
7/17/2024 4:05:36 AM
(MENAFN) The Biden administration introduced a series of new measures on Tuesday aimed at reducing housing costs through rent control and increased home construction. These initiatives are designed to offer greater protections for renters in multi-family properties that are financed by loans from Fannie Mae and Freddie Mac, two entities that play a significant role in the U.S. mortgage market.
Among the proposed protections, renters will receive a 30-day notice before any rent increase, a similar notice regarding lease expirations, and a five-day grace period before late fees are imposed on rent payments. President Biden made a strong statement, saying, "Today, I’m sending a clear message to corporate landlords: If you raise rents more than 5 percent on existing units, you should lose valuable tax breaks." He criticized the previous administration for providing special tax incentives to corporate landlords, emphasizing his commitment to lowering housing costs for families.
In addition to these tenant protections, the administration plans to repurpose federal land to facilitate the construction of tens of thousands of affordable homes. The White House has called on state and local governments to take action to build more affordable housing on public lands as well.
Biden also urged Congress to pass legislation that would require corporate landlords to cap rent increases on existing units at 5 percent, warning that those who fail to comply could lose their current federal tax breaks. If the Biden-Harris Housing Plan is successfully enacted, it aims to create 2 million new homes and provide up to USD10,000 in mortgage relief to help millions of Americans achieve homeownership.
In addressing the challenges of high rental costs and the inaccessibility of homeownership for many working families and young Americans, Biden remarked, "Rent is too high and buying a home is out of reach for too many working families and young Americans, after decades of failure to build enough homes. I’m determined to turn that around." This comprehensive approach underscores the administration's commitment to tackling the ongoing housing crisis in the United States.
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