The Mortgage Bankers Association (MBA) has announced its opposition to a Biden administration plan to impose a 10% cap on annual rent hikes on properties that rely on the Low-Income Housing Tax Credit (LIHTC).
In a press statement, MBA President and CEO Bob Broeksmit praised the LIHTC program as “the federal government’s most successful tool to construct and rehabilitate housing for low- and moderate-income households.” But Broeksmit warned that “unworkable rent caps” on the program could kill its effectiveness.
“Rent control has consistently proven to be a failed policy that discourages new construction, distorts market pricing, and leads to a degradation of the quality of rental housing – the exact opposite of what is currently needed in markets throughout the country,” Broeksmit said, who added the answer to the rental housing shortage was to increase supply rather than mandating rent control on existing properties.
“MBA will continue to call on the Administration and Congress to make the federal government’s multifamily lending programs more viable, competitive, and less costly for borrowers and developers alike,” Broeksmit continued. “This includes our continued advocacy for the Senate to pass H.R. 7024, the ‘Tax Relief for American Families and Workers Act of 2024,’ a bipartisan bill that passed in the House earlier this year and includes meaningful enhancements to the LIHTC program.”
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