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MBA Opposes Biden Administrations Rent Control on LIHTC-Financed Multifamily Properties

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Last Updated on April 2, 2024 by Robert C. Hoopes

The Biden administration’s plan to impose a 10 percent limit on annual rent hikes at properties supported by the Low-Income Housing Tax Credit (LIHTC) has sparked concerns within the mortgage and housing industry. MBA President and CEO Bob Broeksmit, CMB, has expressed worries about the potential negative impact of rent caps on LIHTC programs.

Broeksmit argued that rent control could discourage new construction, distort market pricing, and ultimately lead to a degradation of rental housing quality. He pointed to the current situation in St. Paul, Minnesota, where rent control measures have resulted in disastrous consequences compared to neighboring Minneapolis.

In response to these issues, Broeksmit emphasized the importance of increasing the supply of affordable rental housing as a solution to the affordability crisis. MBA will continue to advocate for the federal government’s multifamily lending programs to be more viable, competitive, and less costly for borrowers and developers.

The organization is also in support of the passage of H.R. 7024, the “Tax Relief for American Families and Workers Act of 2024,” which includes enhancements to the LIHTC program. These enhancements aim to address the concerns raised by Broeksmit and ensure the continued success of LIHTC programs in providing affordable housing options for low-income individuals and families.

As the debate over rent control and affordability continues, MBA remains committed to advocating for policies that promote the development of affordable housing while also ensuring the success and sustainability of LIHTC programs.

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