Housing Credit

The Biden administration’s move to cap rent increases for affordable housing units has split support in the industry. Officials announced last week that the administration will impose a 10% cap on YOY rent increases for property owners who are part of the Low-Income Housing Tax Credit program. Currently, LIHTC allows increases of 5% or double the percentage change in national median income, whichever is higher. The proposal would limit rent increases on these properties to no more than 10% annually, doing away with the income change option. Proponents say the plan would help stabilize housing for low-income Americans reliant on subsidized housing. “The decision to prevent egregious rent increases is an important win for the millions of renters living in…