LAS VEGAS (KTNV) — Federal actions announced by the Biden Administration on Tuesday are calling on Congress to pass legislation in hopes of lowering housing costs and building more affordable housing in Nevada and across the nation.
The new actions — announced as President Joe Biden visits Las Vegas — call on corporate landlords to cap rent increases on existing units at 5% or run the risk of losing federal tax breaks. These new actions also include proposed plans to repurpose public land to build more affordable housing and revitalize existing neighborhoods in Nevada.
Capping Rent Increases
The White House claims some corporate landlords are gaining huge profits by increasing rents above their own costs. Meanwhile, government watchdog Accountable.US said since 2019, millions of Americans struggle to make their monthly payments as the cost of rent has increased by 31.4%, surpassing a 23% increase in wages.
A CPI analysis by the organization found the six largest publicly-traded apartment companies reported $300 million in increased profits, mostly from rent increases.
Biden’s answer is to take away certain tax write-offs for landlords who own more than 50 units unless they cap their annual rent increases on existing properties to no more than 5%.
An exception for new construction and large renovations and rehabilitations is made, though. Biden said his plan would balance the needs of tenants and corporate incentives as his plan to build more housing bridges the gap.
Repurposing Public Land
As part of these new actions, Biden is also asking federal agencies to assess their surplus land to repurpose it for new affordable housing.
On Tuesday, the Bureau of Land Management put this plan into practice by asking for input on the proposed below-market sale of 20 acres of public land in the southwest Las Vegas valley. The agency estimates the sale would allow for 150 affordable homes for families making less than 80% of the area’s median income.
BLM also plans to announce a proposed below-market sale to the city of Henderson for 18 acres of public land. The city estimates that 300 affordable homes for rent can be developed on the land if the sale goes through.
On a wider scope, local governments in Southern Nevada have already expressed interest in 562.5 acres of BLM land for affordable housing — an interest the federal agency is considering. The White House says the land in question could support up to 15,000 affordable homes for rent and home ownership.
BLM owns around 26,000 acres in the Las Vegas valley that could ultimately be considered for affordable housing under the Southern Nevada Public Lands Management Act, the White House stated.
In addition to BLM, the White House says other federal agencies are considering similar proposals and programs.
Repurpose and Rehabilitation
Biden announced on Tuesday a $50 million grant awarded to the Southern Nevada Regional Housing Authority and the City of Las Vegas, which will be used to restore 235 existing housing units for low-income renters and build 400 new housing units.
In a press release. Sens. Catherine Cortez Masto and Jacky Rosen specified the funds will be used to revitalize and create more homes at the Marble Manor Apartments in the Historic Westside and to support community investments in the surrounding area including job training, child care, sports and community recreation centers, as well as a community garden and a grocery store.
The White House said they have also invested in small businesses and an early learning center in Las Vegas. These federal investments hope to leverage another $212 million in public and private resources for community spaces and support services for Las Vegas residents.
The $50 million grant in Las Vegas is a portion of $325 million in Department of Housing and Urban Development grants to support similar projects in cities across the country, the White House noted.
“The awards will build over 6,500 units of new housing, support small businesses, build childcare centers and new parks, and will be used to leverage more than $2.65 billion in additional public and private investments in these neighborhoods,” the White House said.
