Biden seeks 5% cap on rent increases, announces plan for land to build Las Vegas housing

LAS VEGAS ( KLAS ) — President Biden on Tuesday will announce efforts to bring down housing costs by limiting rent increases and building more homes, a follow-up to his housing initiatives unveiled during a vist to Las Vegas in March.

Biden is scheduled to speak at the NAACP National Convention at Mandalay Bay on the south Strip. Acting Housing and Urban Development (HUD) Secretary Adrianne Todman is also scheduled to appear.

First, Biden is targeting corporate landlords and calling on Congress to give them a choice: Cap rent increases on existing units at 5% or risk losing current federal tax breaks. Biden left it up to Congress to pass legislation to accomplish that.

Second, he announced a plan to sell federal land at a steep discount to open new areas for building affordable housing in Southern Nevada, starting with 20 acres in Clark County for $100 per acre, 18 acres in Henderson and possibly growing to 562.5 acres around the Las Vegas valley. The land would be sold to support building up to 15,000 or more affordable rental and homeowner units.

That plan appeared to be a response to Nevada Gov. Joe Lombardo’s complaint that the federal government was one of the biggest reasons more housing wasn’t being built already. The Bureau of Land Management controls the release of federal property. Lombardo urged Biden in March to cut through federal red tape to free up lands faster. He pointed at the recent establishment of the sprawling Avi Kwa Ame National Monument south of Las Vegas.

And third, Biden called for rehabilitating distressed housing and revitalizing neighborhoods as officials work to build more affordable housing.

A $50 million grant for the Southern Nevada Regional Housing Authority (SNRHA) is part of the effort — included in a package of $325 million in funding that’s being distributed to 15 projects nationwide under the HUD Choice Neighborhoods Implementation Grant.

The Marble Manor public housing property on W. Washington Avenue and the surrounding area of the Las Vegas Historic Westside will benefit from the $50 million grant.

“Over the course of the grant term, Brinshore Development will build a total of 627 mixed-income units,” according to HUD’s project description. “Brinshore will replace all 235 highly distressed Marble Manor units with nearly 400 additional affordable and market rate units to boost housing supply in Las Vegas. This strong income-mix will help stabilize the neighborhood while also deconcentrating poverty for future generations. The housing will be constructed in five phases on the site of the original Marble Manor development.”

SNRHA and the City of Las Vegas will invest in an early learning center and provide support for small businesses, according to the Biden administration. “In addition, these funds will leverage an additional $212 million in public and private resources in this community, that will activate indoor and outdoor community spaces, and provide supportive services to residents,” a White House fact sheet said.

“Families deserve housing that’s affordable — it’s part of the American Dream. 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 prepared statement.

“Today, I’m sending a clear message to corporate landlords: If you raise rents more than 5%, you should lose valuable tax breaks. My Administration is also taking action to cut red tape and repurpose public land to build more affordable homes — including thousands of new homes in Nevada — and announcing new grants to build thousands of homes from Las Vegas to Syracuse. And I’m reiterating my call for Congress to pass my plan to build 2 million new homes—to lower housing costs for good, we need to build, build, build.”

Biden called on Congress to pass the Biden-Harris Housing Plan, which would build 2 million homes, and provide $10,000 in mortgage relief to unlock homeownership for millions of Americans.

“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 said.

Information on the grant for Marble Manor expanded the focus to J Street and Jackson Avenue.

The HUD summary acknowledged the history of segregation associated with the Historic Westside: “Black entertainers performing on the Las Vegas Strip were not allowed to lodge at the same hotels and casinos they performed. Instead, they were accommodated in the Westside.”

And when Interstate 15 was built, it effectively sealed off the area. For decades, the shell of the famous Moulin Rouge Casino stood as a reminder of the area’s vibrant past. But it eventually became the site of occasional fires as homeless people used it for shelter until it was demolished in 2010.

“Today, the Historic Westside is ready for its next chapter. Momentum for change has been building in the Historic Westside through the community-driven HUNDRED Plan, adopted by the City in 2016. This plan led to $77 million in recent public and private investments, including new housing development and an urban agriculture facility,” according to HUD’s summary.

Housing officials said there are only 14 affordable rental homes available per 100 extremely low-income renter households, representing the lowest rate in the nation.

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