President Biden has announced a proposal to halt rent increases by cutting off tax credits for landlords who try to raise rent by more than 5 percent. On the proposal, Housing and Community Development Network of NJ (the Network) Director of Policy and Advocacy Matthew Hersh issued the following statement:

“Rents are spiraling out of reach for countless Americans, so we applaud President Biden for offering a bold proposal to address the housing affordability crisis. Decent and affordable rental homes are few and far between so tenants are at the mercy of their landlords who have little to no restrictions on rent hikes. Some local governments do have rent control policies, but they are the exception, there is no mechanism in our state to truly protect tenants from unconscionable rent increases.

“This is a crisis that’s hurting families who are struggling to keep a roof over their heads and puts households with the lowest incomes at great risk of homelessness. Our economy cannot thrive if people cannot afford to stay in their homes. We call on NJ legislative and Congressional leadership to follow President Biden’s lead to finally put the brakes on unconscionable rent hikes that have become a widespread, destabilizing post-pandemic feature. It’s time for our elected leaders to take meaningful action to keep people safe and stably housed.

The Network has also offered recommendations for New Jersey lawmakers to address the housing affordability crisis in our state these include:

*Expanding the realty transfer fee: Expand the fee, the primary funding source for the Affordable Housing Trust Fund, which supports the creation of affordable homes, so that it is progressive and collects more revenue from the sale of very expensive homes.

*Lower the rent: Enact a luxury landlord corporate tax which would be a fee on for-profit, luxury developments that could be forgiven or refunded if the landlord provides affordable units through inclusionary zoning and/or keeps rent increases at a reasonable rate.

*Make evictors pay: Increase the eviction filing fee, currently at $50, as a disincentive to landlords and as a mechanism to expand revenue for eviction diversion and housing counseling programs.

About the Housing and Community Development Network of NJ
The Housing and Community Development Network of New Jersey is the statewide association of more than 275 community development corporations, individuals and other organizations that support the creation of affordable homes, economic opportunities, and strong communities. For more information on the Network, visit www.hcdnnj.org.