President Joe Biden is pushing for a plan to limit rent increases for affordable housing units for low-income people to 10 percent. The Joe Biden administration will soon announce a plan to limit rent increases for affordable housing units to 10 percent. The main point is to limit the rate of increase in rent for affordable housing units for low-income people to 10 percent every year.
Cases where rent increase restrictions are applied have a certain amount of low-income housing units operated by the government and benefit from the low-income housing tax program from the government. These are the building owners who receive. To benefit from the Low-Income Housing Tax program, developers must meet the requirement that at least 20 percent of all units be occupied by low-income tenants earning 50 percent or less of the area median income.
Additionally, 40 percent of all units must be occupied by tenants earning 60 percent or less of the area median income.
The measure, which limits rent increases to 10 percent, is expected to apply to more than a million households across the country. Some are concerned that restrictions on rent increases promoted by the Biden administration may reduce the expansion of affordable housing. In particular, the cost of expanding apartments for low-income families has soared, and it has been predicted that if restrictions are placed on rent increases, developers will not jump into expansion of affordable apartments for low-income families, which will ultimately lead to a decrease in the supply of apartments for low-income families.
Considering the current situation in California, where home insurance costs are soaring, it may become more difficult to expand affordable housing units for low-income people. However, tenant unions welcome the White House’s policy of limiting rent increases.