This week, President Biden announced actions aimed at lower housing costs through proposals to limit rent increases by corporate landlords and building more homes.
The President’s plan calls for reducing barriers to homeownership through a mortgage relief tax credit that would provide certain first-time homebuyers with a tax credit of $10,000 over two years and providing one-year tax credit of up to $10,000 to certain homeowners who sell their starter home to another owner-occupant. In addition, the plan calls for down payment assistance of up to $25,000 for first-generation homebuyers.
To assist with the production of more housing the President’s plan includes new and expanded tax credits and the creation of a $20 billion competitive grant fund to support the construction of affordable multifamily rental units and incentivize local actions to remove unnecessary barriers to housing development. An additional $8 billion would be used for a new grant program to expand temporary and permanent housing strategies for those experiencing homelessness.
The plan includes efforts to lower the costs for renters by cracking down on corporate landlords colluding together through the of use software and algorithms to increase rents. The plan would also crack down on rental junk fees such as “convenience fees” to pay rents online and other fees such as sorting mail or collecting trash.
Implementing many aspects of the President’s plan requires Congress to act but other aspects are being reviewed and implemented through executive and administrative actions.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.