Throughout her career, Vice President Kamala Harris has been a strong advocate for affordable housing. She believes that every American deserves access to affordable housing, as mentioned in a post on X on July 16. The Biden administration’s initiative to cap rent increases by 5% on landlords with 50 or more rental units without losing federal tax breaks resonates with Harris’ vision for affordable housing. Her commitment to this cause is evident in her efforts as the attorney general of California, where she drafted and helped pass the California Homeowner Bill of Rights, aimed at protecting homeowners from unfair practices.
In 2012, Harris played a significant role in securing an $18 billion agreement as part of a national multistate settlement to assist homeowners who faced foreclosure or fraud. As a senator, she introduced the Rent Relief Act in 2018, which offers tax credits to renters earning below $100,000 and spending over 30% of their income on rent and utilities. Harris continued to push for affordable housing by reintroducing a modified version of the bill in 2019, enhancing the mechanism for the Treasury to provide the tax credit monthly to eligible households.
In a recent development, Harris announced the recipients of an $85 million grant under the Pathways to Removing Obstacles for Housing (PRO Housing) project, aimed at increasing building activities and reducing housing costs for families in the U.S. Moreover, in May, Harris allocated $5.5 billion through the U.S. Department of Housing and Urban Development (HUD) to boost affordable housing, promote economic growth, build wealth, and address homelessness in communities across America. These initiatives come at a critical time when the country is grappling with rising homelessness rates and escalating housing costs.
With Harris poised to be the Democratic nominee for president, experts anticipate that her policies on affordable housing may align closely with those of President Joe Biden. The Biden administration has been focused on increasing the supply of affordable housing and lowering costs for buyers and renters. Harris has been a key player in shaping Biden’s housing policy, and it is likely that her campaign will continue to prioritize affordable housing initiatives. Moreover, her proposed LIFT the Middle Class Act, which aims to provide tax credits to qualifying middle- and working-class Americans, could offer a more sustainable solution to address rent inflation compared to the 5% rent cap proposed by Biden.
While both the rent cap and the tax credit proposals have their merits and drawbacks, experts have raised concerns about the potential unintended consequences of implementing a strict rent cap. Francesco D’Acunto, an associate professor of finance, highlights that a rent cap could discourage housing supply, leading to landlords withdrawing their properties from the rental market. Conversely, the LIFT Act’s tax credits target rent inflation without creating such distortions. However, it is essential to acknowledge that no policy is perfect, and while the LIFT Act is a step in the right direction, there may be room for further refinement and improvement.
Overall, Vice President Kamala Harris’ dedication to affordable housing is evident through her past initiatives and current policy proposals. As the housing crisis continues to impact communities nationwide, Harris’ commitment to expanding access to affordable housing and addressing homelessness positions her as a crucial advocate for housing justice in the United States.