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CHARLOTTE, N.C. ( QUEEN CITY NEWS ) — Before bowing out of the race to the White House, President Biden announced a proposal for a 5% annual cap on rent for landlords with more than 50 units in their portfolio.
“The idea that corporate-owned housing is able to raise your rent $3-$400 bucks a month or something,” Biden said last week.
The proposal, if passed by Congress, would halt those landlords from increasing rent by more than 5% of federal tax breaks. View the full proposal here .
Cornelius seeks ‘exceptional’ developments with new Land Use Plan that lowers densities “It’s lazy policy,” said Jim Tobin, President and CEO of the National Association of Home Builders. “It’s just a way in order to win with voters and renters out there rather than solving the problem the way they should, which is let’s lower the barriers to more apartment creation.”
Tobin believes the plan will have the reverse effect on rental prices in the long term by deterring investors from building more units.
“We all know costs are up equally for everybody, which means the maintenance of these properties are going up, but yet you cannot raise rents in order to meet those new expenses,” he said. “If you’re an apartment developer, you’re going to wonder, ‘Does this get extended after a couple of years? Is this the tip of the iceberg before we see nationwide rent control?’”
The post-COVID surge of new multi-family units has helped supply issues in parts of the country.
Charlotte, in particular, experienced a flood of newly built apartments, resulting in a *decrease* in rent in the last year ranging from 4-12% for various sized units.
UNFINISHED BUSINESS: Multiple homeowners claim NC builder took bank draws, cash and left their homes unfinished Local nonprofits would argue it doesn’t make up for the surge they saw when the moratorium on evictions was lifted in 2021.
“It was a massive shock to the system of low-income residents,” Carol Hardison, CEO of Crisis Assistance Ministry told Queen City News. “We saw people coming in… on average they might have needed $700 or $800, and suddenly they were needing $1,400-$1,500 to make rent.”
Crisis Assistance Ministry provides a wide range of services for people needing housing stability.
She believes this proposal is exactly what people need.
“If somebody’s taking public funds to support their private venture, then it’s absolutely appropriate for the government to put restrictions with the dollars,” she said.
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