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The Biden administration moved this week to limit how much rent can rise in some affordable housing units across the country.
While some housing experts criticized the move, tenant advocates said the new rule, which will cap rent increases at 10%, will help people stay in their homes.
“Rent is still very high, but this cap will provide stability for more than a million tenants,” said Tara Raghuveer, director of the National Federation of Tenants Union.
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However, Mortgage Bankers Association President and CEO Bob Broeksmidt said capping rent increases will only worsen the housing affordability crisis.
“Rent control has consistently proven to be a failed policy that discourages new construction, distorts market prices, and degrades the quality of rental housing — the exact opposite of what is currently needed in markets across the country,” Broeksmit said.
Here's what renters should know about the new protections, which were announced April 1 and are now in effect.
Who is eligible for the new cover?
The cap applies to units that receive funding from the Low Income Housing Tax Credit program, the nation's largest federal affordable housing program, according to experts. The National Low Income Housing Coalition estimates that about 2.6 million rental homes across the United States are subject to current LIHTC rent and income restrictions.
To find out if you're in such a unit, you can look up your lease — checking for the word “tax credit” or the letters “LIHTC” — or ask your landlord, said Shamus Roller, executive director of the National Housing Law Project.
You can also ask your state housing agency, he said.
Some agencies have an interactive map and list of all LIHTC properties available on their website, Roller said.
Another option is to ask your local registrar's office for notarization.
“All LIHTC properties are subject to a regulatory agreement that must be registered against the property,” he added.
There is also a public LIHTC database, but housing advocates have warned that it is outdated. The tenant can also check the National Housing Preservation Database.
How much can my rent go up?
The U.S. Department of Housing and Urban Development uses income limits each year to calculate the maximum amount of rent a landlord can charge a LIHTC tenant, according to the National Housing Law Project.
These assessments are complex, but under the new rule, annual rent increases must, from now on, not exceed 10% on qualifying units, according to the National Housing Code Project.
This will help “keep seniors, families with children, people with disabilities and low-income renters in their homes,” Roller said.
What if the landlord tries to raise my rent more?
If a tenant suspects their landlord is ignoring the new rules, they should alert their landlord to the updated government policy and provide them with a copy of the official HUD declaration, Roller said.
He added: “This policy can be difficult to understand and explain, so we strongly recommend that tenants contact their local pro bono legal services provider to help determine whether the cap applies to them and, if so, whether they should challenge illegal rent increases.”
At Justshelter.org, people can search for resources for local renters, including legal help.
