FILE PHOTO: The Manhattan skyline is pictured from the Summit at One Vanderbilt observatory in Manhattan in New York City, U.S., April 14, 2023. REUTERS/Mike Segar/File Photo
WASHINGTON — U.S. President Joe Biden’s administration will soon announce a 10% cap on yearly rent increases for certain affordable housing units that are subsidized by the federal government, a senior administration official said on Friday.
The step restricts rent increases by property owners if they are part of a tax credit program for low-income housing, the official added, confirming details reported by the Washington Post.
The new regulations will be announced on Monday, the official said.
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The U.S. Department of Housing and Urban Development did not immediately respond to a request for comment.
With worries about high rents and mortgage interest rates contributing to voters’ sour views about the economy, Biden, a Democrat, will aim to tout his administration’s latest proposals to make housing more affordable as he campaigns for re-election against Republican former President Donald Trump.
Trump has lambasted Biden’s economic policies, blaming them for inflation in multiple sectors of the economy.
The White House has also called on Congress to support investments to lower housing costs. Congress is unlikely to pass major legislation in an election year, but the president’s discussion of the topic reflects awareness of the impact it could have on his re-election hopes.