Facing voter frustration at housing affordability, the White House has pushed legislation to Congress seeking to cap annual rent increases at 5% and punish corporate landlords by withdrawing their federal tax breaks if they ignore the limit.
The Biden administration also pledged to repurpose public land in Nevada so 15,000 affordable housing units can be built.
It said it will rehabilitate distressed housing, build more affordable housing and revitalize neighborhoods, including those in Las Vegas.
The overall government housing proposal would see 2 million homes being built and the provision of $10,000 in mortgage relief to unlock homeownership for millions of Americans.
The White House claimed more units are under construction than at any time in over 50 years, and the rate of new housing starts was 17% higher than under the previous administration.
However, the rent-cap legislation does not have bipartisan support.
The cap and threat of punishment would affect only corporate landlords, who are defined as companies or individuals with more than 50 properties in their portfolio.
The administration said its policy would cover more than 20 million rental homes across America.
The Biden push for more affordable housing comes as the Federal Housing Finance Agency (FHFA) rolls out policies to protect renters in multi-family properties financed by loans acquired by Fannie Mae and Freddie Mac.
These protections apply to future loans acquired by Fannie Mae and Freddie Mac, who have financed an average of 1.2 million multi-family rental units over the past three years.
The protections include the requirement of the landlord to give:
- 30-day notice before rent increases.
- 30-day notice on lease expiration.
- 5-day grace period before imposing late fees on rental payments.