Biden administration unveils new measures to lower housing costs

ISTANBUL

The Biden administration unveiled new measures Tuesday to lower housing costs by limiting rent increases and building more homes.

The administration wants to protect renters in multi-family properties financed by loans acquired by Fannie Mae and Freddie Mac -- two companies that guarantee and buy most mortgages in the US.

The protections include requiring a 30-day notice before a rent increase; 30-day notice on lease expiration and providing a five-day grace period before imposing late fees on rent payments.

"Today, I’m sending a clear message to corporate landlords: If you raise rents more than 5% on existing units, you should lose valuable tax breaks," Biden said in a statement released by the White House.

"While the prior administration gave special tax breaks to corporate landlords, I’m working to lower housing costs for families," he added.

The new measures also include repurposing federal land to build tens of thousands of affordable homes and calling state and local governments for action to build more affordable housing on public lands, the White House said separately.

Biden also urged Congress to pass legislation telling corporate landlords to cap rent increases on existing units at 5% or risk losing current valuable federal tax breaks.

If the Biden-Harris Housing Plan is passed, it would build 2 million homes and provide $10,000 in mortgage relief to unlock homeownership for millions of Americans.

"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," said Biden.