Welcome to Extreme Investor Network, where we provide you with the latest information and insights on personal finance and investment opportunities. Today, we are discussing the recent move by the Biden administration to limit rent increases in certain affordable housing units across the country.
While some housing experts have criticized this decision, tenant advocates believe that capping rent increases at 10% will provide much-needed stability for over a million tenants. Tara Raghuveer, the director of the National Tenant Union Federation, stated, “The rent is still too damn high, but this cap will provide stability to more than a million tenants.”
On the other hand, Mortgage Bankers Association President and CEO Bob Broeksmit expressed concerns that rent control could worsen the housing-affordability crisis and discourage new construction. Despite these differing opinions, the new rule is now in effect as of April 1, to provide protection for eligible units.
So, who qualifies for this new rent cap? The cap applies to units that receive funding from the Low-Income Housing Tax Credit (LIHTC), the nation’s largest federal affordable housing program. To determine if you are in a LIHTC unit, you can check your lease for the words “tax credit” or “LIHTC” or inquire with your landlord or state housing agency.
Regarding rent increases, the U.S. Department of Housing and Urban Development sets income limits each year to calculate the maximum rent for LIHTC tenants. Under the new rule, annual rent increases should not exceed 10% on eligible units, helping to ensure housing stability for vulnerable populations.
If a tenant suspects their landlord is violating the new rules, they should inform the property owner about the government’s policy and seek legal assistance if necessary. Resources like Justshelter.org can help tenants find local tenant resources and legal support.
At Extreme Investor Network, we believe in empowering individuals with the knowledge and tools needed to make informed financial decisions. Stay tuned for more updates and exclusive insights on personal finance and investment strategies.
