“While the prior administration gave special tax breaks to corporate landlords, I’m working to lower housing costs for families,” Biden said. “Republicans in Congress should join Democrats to pass my plan to lower housing costs for Americans who need relief now.”
The proposal is aimed at preventing landlords increasing rent by more than 5 percent from taking advantage of accelerated depreciation write-offs.
The proposed rule would apply to landlords with more than 50 units, which would cover 20 million units or about half the rental market in the country, according to a fact sheet from the administration.
National economic adviser Lael Brainard told reporters the rent cap, which would be in place for two years under Biden’s proposal, is meant to “serve as a bridge until more housing units are built.”
In order to avoid discouraging new housing supply, it would not impact new construction or units that have undergone substantial rehabilitation, Brainard added.
The Biden administration is also leaning on agencies to repurpose federal land to build more affordable housing. The Bureau of Land Management, United States Forest Service and United States Postal Service have all announced plans to repurpose extra land or properties for housing.
The Hill’s Julia Shapero has more here.
