Biden Administration Takes Steps to Make Housing More Affordable

President Biden has launched a series of initiatives aimed at reducing housing costs and increasing affordability across the United States. The administration's efforts include legislative proposals and executive actions designed to address the housing crisis affecting millions of Americans.

Legislative Initiatives

President Biden has called on Congress to pass legislation that would require corporate landlords to cap rent increases on existing units at 5%. This measure aims to prevent excessive rent hikes that burden tenants, especially in areas with high demand for housing. Additionally, the legislation would provide incentives for landlords to comply by linking it to federal tax breaks.

The administration emphasizes that these steps are necessary to protect tenants from price gouging by corporate landlords, who have been accused of exploiting housing shortages to maximize profits. By stabilizing rent increases, the government aims to create a more predictable and affordable rental market.

Repurposing Public Land

In a move to expand housing availability, the Biden-Harris Administration is repurposing federal land for affordable housing projects. By leveraging underutilized federal properties, the administration plans to facilitate the construction of thousands of new affordable homes. This initiative includes partnerships with local governments and agencies to identify suitable lands and streamline the development process.

For example, in Nevada, the Bureau of Land Management (BLM) is facilitating the sale of public land at below-market rates to support affordable housing projects. This includes parcels in Las Vegas, where local authorities estimate that the initiative could lead to the development of up to 15,000 affordable rental and homeownership units.

Executive Actions

The administration is also taking immediate executive actions to protect renters and promote affordable housing. Federal agencies, including the Federal Housing Finance Agency (FHFA), are implementing new policies to safeguard renters in multifamily properties financed by Fannie Mae and Freddie Mac. These protections include advance notice requirements for rent increases and lease expirations, as well as grace periods for late fees on rental payments.

Moreover, agencies such as the United States Forest Service (USFS) and the United States Postal Service (USPS) are exploring ways to repurpose surplus federal properties for housing developments. This includes leasing federal land for workforce housing projects in high-cost areas, thereby increasing housing options for middle- and lower-income families.

Community and Economic Development

To complement these efforts, the Department of Housing and Urban Development (HUD) has announced $325 million in Choice Neighborhoods grants. These funds will support the construction of new affordable housing units, stimulate economic development, and enhance community resources in various cities nationwide. The grants are expected to leverage substantial additional investments from public and private sectors, further revitalizing neighborhoods and improving living conditions for residents.

Challenges and Opposition

Despite these initiatives, the administration faces challenges from congressional Republicans who have opposed some of the proposed housing reforms. Republicans have blocked bills aimed at expanding rental assistance and funding for affordable housing programs, arguing against what they perceive as increased government intervention in the housing market.

In conclusion, President Biden's housing agenda represents a comprehensive effort to address affordability challenges across the country. By combining legislative proposals, executive actions, and community partnerships, the administration aims to create a more equitable housing market where all Americans have access to safe, affordable housing options.

Source: The White House, July 16, 2024