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Biden calls on Congress to crack down on large rent hikes by corporate landlords

Published 07/16/2024, 05:03 AM
Updated 07/16/2024, 11:51 AM
© Reuters. U.S. President Joe Biden walks across the South Lawn to board Marine One for travel to Nevada from the White House in Washington, U.S., July 15, 2024. REUTERS/Leah Millis

By Jeff Mason

WASHINGTON (Reuters) - President Joe Biden on Tuesday called on Congress to pass legislation that would compel corporate owners of rental housing units to cap annual rent increases at 5% or lose some tax benefits.

The White House also unveiled efforts to use public land for as many as 15,000 affordable housing units in Nevada and to boost neighborhoods in Las Vegas and elsewhere.

Biden, a Democrat, is traveling in Nevada, a political swing state that he hopes to win in the Nov. 5 election against Republican Donald Trump.

"Rent is too high and buying a home is out of reach for too many working families and young Americans, after decades of failure to build enough homes. I’m determined to turn that around," Biden said in a statement.

"While the prior administration gave special tax breaks to corporate landlords, I’m working to lower housing costs for families. Republicans in Congress should join Democrats to pass my plan to lower housing costs for Americans who need relief now."

Biden's Democrats control the Senate, but Republicans control the House of Representatives and progress on passing major pieces of legislation is unlikely with the election in full swing.

But the White House's focus on housing gives Biden a chance to discuss an issue that resonates with voters struggling with high costs across the economy, including rent.

© Reuters. U.S. President Joe Biden walks across the South Lawn to board Marine One for travel to Nevada from the White House in Washington, U.S., July 15, 2024. REUTERS/Leah Millis

Under the White House plan, corporate landlords that own more than 50 rental units would lose the ability to take faster write-offs on depreciation unless they limited annual rent increases to 5%.

The policy would cover more than 20 million rental units across the country, the White House said.

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