President Biden Unveils Major New Actions to Lower Housing Costs

Washington, D.C., July 16, 2024 – President Joe Biden has announced a comprehensive set of actions designed to tackle the rising housing costs affecting millions of Americans. The President's plan aims to limit rent increases, expand affordable housing, and repurpose public land for housing developments.

Key Initiatives

Limiting Rent Increases

President Biden has urged Congress to pass legislation that would require corporate landlords to cap rent increases on existing units at no more than 5% annually. Landlords who fail to comply would risk losing valuable federal tax breaks. This measure targets corporate landlords with portfolios of over 50 units, covering more than 20 million rental units across the nation. The plan includes exceptions for new construction and significant renovations, and is intended as a temporary measure until the broader housing supply increases.

Building Affordable Housing

The administration is repurposing public land to build up to 15,000 affordable housing units in Nevada alone, with additional projects planned across the country. The Bureau of Land Management (BLM) will sell 20 acres of public land to Clark County, Nevada, at below-market rates, enabling the development of nearly 150 affordable homes. An additional 18 acres will be sold to the City of Henderson to support nearly 300 affordable housing units. Furthermore, BLM has identified another 562.5 acres in Southern Nevada suitable for affordable housing, potentially creating up to 15,000 more units.

Federal Land Repurposing

The United States Forest Service (USFS) will lease land in Steamboat Springs, Colorado, and Ketchum, Idaho, for workforce housing—the first such projects in the nation. The United States Postal Service (USPS) will pilot the repurposing of surplus properties for affordable housing. HUD, HHS, and GSA are also streamlining processes to use federal buildings and land to house the homeless, aiming to create thousands of new units.

Support for Renters

The Federal Housing Finance Agency (FHFA) will implement new renter protections for properties financed by Fannie Mae and Freddie Mac, including:

- 30-day notice before rent increases,

- 30-day notice on lease expirations, and

- 5-day grace period before imposing late fees.

Community Revitalization

HUD is awarding $325 million in Choice Neighborhoods grants to build over 6,500 new affordable housing units, support small businesses, and revitalize neighborhoods. These grants will leverage an additional $2.65 billion in public and private investments. For example, a $50 million grant to the Southern Nevada Regional Housing Authority and the City of Las Vegas will restore 235 existing affordable housing units and build 400 new units. The funds will also support an early learning center and small businesses, leveraging an additional $212 million in resources for community development.

Challenges and Legislative Push

President Biden highlighted the obstruction by Congressional Republicans, who have blocked key elements of his housing agenda, including rental assistance programs and measures to lower mortgage costs. Despite this, the administration is committed to working with Congress to implement these initiatives and protect renters from price gouging by corporate landlords.

Conclusion

President Biden's comprehensive plan aims to stabilize the rental market and increase the availability of affordable housing. By capping rent increases, repurposing public land, and providing substantial grants for community development, the administration seeks to address the nation’s housing affordability crisis and ensure that more Americans can achieve the dream of homeownership.