What do you all think about Bidens "renters bill of rights"

[mspart]

https://finance.yahoo.com/news/biden-rolls-out-renters-bill-of-rights-as-lawmakers-push-for-federal-rent-control-laws-133846254.html

 

Jennifer Schonberger

·Senior Reporter

Wed, January 25, 2023 at 5:38 AM PST

 

 

In the face of sky-high rents, President Joe Biden is rolling out a new set of principles the White House is calling a "Renters Bill of Rights" in an effort to improve rent affordability and protections for tenants.

The president is directing the Federal Housing Finance Agency (FHFA) to examine limits on rent increases for future investments and actions promoting renter protections. The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) have been tapped to root out practices that unfairly prevent applicants and tenants from accessing or staying in housing.

This rollout comes as progressive Democrats have asked Biden to direct different agencies, including the FTC, to limit rent increases. While rent control is common in some cities, there has never been federal residential rent control.

Nearly 50 progressive lawmakers, including Sen. Elizabeth Warren (D-MA) and Rep. Alexandria Ocasio-Cortez (D-NY), sent a letter to Biden earlier this month urging the president to take executive action to protect tenants from rising rents.

"In the absence of robust investments in fair and affordable housing, it is clear that additional timely executive action is needed to address the urgent issue of historically high rental costs and housing instability," the lawmakers wrote. "…We urge your Administration to pursue all possible strategies to end corporate price gouging in the real estate sector."

Specifically, lawmakers had called on the president to direct the FTC to issue new regulations defining excessive rent increases and enforce actions against rent gouging, suggestions that are aggressive than what the administration has so far put forth. The letter also asked to have FHFA put in place rent protection for tenants living in properties financed with government-backed mortgage properties, which is more closely aligned with what the president outlined on Wednesday.

In Wednesday's announcement, the administration also sought to rally state and local governments — as well as the private sector — to protect renters.

The Wisconsin Housing and Economic Development Authority and Pennsylvania Housing Finance Agency, for instance, have agreed to cap annual rental increases to 5% per year for federal- or state-subsidized affordable housing.

In the private sector, the National Association of Realtors has also agreed to put new resources towards property managers in their network to promote practices like advertising to prospective tenants that Housing Choice Vouchers are accepted at their property, providing information about rental assistance, and using alternative credit scores for applicants without a detailed credit history.

Despite Wednesday's action, Rep. Jamaal Bowman (D-NY) and Sen. Warren think the actions fall short.

"We believe that the administration can go significantly further to help tenants struggling to pay rent as soon as next week," Bowman said. "We need actions that will urgently address skyrocketing housing costs, keep people housed, and rein in corporate profiteering...I look forward to continuing to work with the Biden Administration on this issue."

Bowman said he plans to work with colleagues in Congress to work on legislation to address high rents.

The limits of FTC power

In advance of receiving the letter, the White House held several conversations with staff from Rep. Bowman and Sen. Warren’s offices about ensuring rental markets are fair and affordable for renters. Lawmakers argued the FTC already has the power to limit rent increases, given Congress has granted the agency power to police unfair and deceptive acts and practices. The argument is that rent hikes which are not proportional to higher costs for the landlord are unfair or deceptive.

But analysts are skeptical the FTC could impose rent controls and that courts would uphold these policies if put in place.

"The Supreme Court is more conservative. It is less inclined to let agencies assert authorities that Congress did not explicitly give them. Congress never empowered the FTC to limit how much residential rents may increase," Cowen analyst Jaret Seiberg said in a recent note. "It is why we would expect the courts to reject this type of regime."

Seiberg also questioned how a federal regime would actually work, given costs vary from city to city and buildings may get remodeled or upgraded. "The FTC is a relatively small agency," Seiberg added. "We don't see how it could account for all this in a way that could survive court challenges."

While legislation could accomplish this, Seiburg said he doesn't see Congress adopting federal rent control.

Rent prices rose 7.45% year over year in November, according to the latest available data from the Rent Report, the slowest annual rise over the last 15 months. Still, this increase is more than triple the 2.2% annual rent increase seen during the same month two years ago.

So Biden wants to impose limits to landlords.   How about those landlords that haven't been paid for months due to covid and still have to pay the mortgage and property taxes etc.   Rents are based on those factors and making a profit.   Biden has no authority to do this.   But he knows that he can do it until it is shot down in the courts.  Completely unconstitutional use of power and why the Founders didn't want a super powerful executive.

In a time of high property prices, hence increasing property taxes, is rent control a good thing or not?  If rent control is enacted, will this encourage landlords to make repairs in a timely manner or not?   All of these costs go into determining the rental rates so all can be paid for and make a return on the investment. 

What are your thoughts on this effort? 

mspart

 

[El Luchador]

On a recent gun permit form filed by Hunter we learned he rents the Delaware home where his dad keeps his Corvette and classified documents for $50,000 per month. I wonder if he had Hunter in mind when he established this? 

[jross]

As a private citizen that owns rental property, the government should stay out of my business.
The government can offer to house or subsidize citizens to pay rent from citizens and corporations.
I don't mind if the government regulates corporations within reason.

I own rental property.
One tenant has paid on time for ten years.
It is standard to raise the rent by 5% annually without exception.
I've raised the rent by 5% once in ten years, and this was due to my mortgage insurance costs increasing. 
The tenant doesn't call me to complain, and I am two years from owning the property outright.

The neighborhood now charges 80% higher rent than me.  This makes me a bad businessman because I don't maximize profit.

[LJB]

private citizen???

autonomy???

sorry, brother... 

private citizens can not be trusted to handle their own business...

if that starts happening they might start thinking for themselves...

nope... 

we can not allow that to even be whispered about in dimly lit corners...

 

[El Luchador]

Fascism: Private ownership and complete government control. 

[Plasmodium]

Real estate is the one facet of the US economy that is entirely socialist.

[El Luchador]

43 minutes ago, Plasmodium said:

Real estate is the one facet of the US economy that is entirely socialist.

Insurance is right in there.

[mspart]

16 hours ago, Plasmodium said:

Real estate is the one facet of the US economy that is entirely socialist.

How is real estate entirely socialist?  I ask this as an honest question.  

Buying and selling of real estate smacks of overt capitalism to me.  Buying property as an investment smacks of overt capitalism to me also.   So I'd like to know what you are thinking when you say this. 

mspart

[jross]

Public housing, rent control, land trusts, and subsidies can be considered socialist.

However, I assure @Plasmodiumthat I bought an investment property with my own money, at my risk, and I set my rental/selling price based on supply and demand.  

Most housing is owned and controlled by private individuals and companies, and personal property rights are protected by the constitution (5th & 14th Amendments + Contracts clause).

[Plasmodium]

8 minutes ago, jross said:

Public housing, rent control, land trusts, and subsidies can be considered socialist.

However, I assure @Plasmodiumthat I bought an investment property with my own money, at my risk, and I set my rental/selling price based on supply and demand.  

Most housing is owned and controlled by private individuals and companies, and personal property rights are protected by the constitution (5th & 14th Amendments + Contracts clause).

My point about real estate being socialist is that every square inch of real estate in the USA is owned by government.  This is accomplished through leasing(euphemism is involuntary taxation) and outright ownership.  Real estate is also very tightly regulated(zoning and ordinances) and regularly executes involuntary seizure(eminent domain).  This is the textbook definition of socialism.

It works very well.

[mspart]

Yes, my wife's great grandparents got run out of their very very nice house because of a new road planned for going right through it.   If they can take it away because you don't pay your property taxes, I can see that as a point, but stretching the point no doubt. 

mspart

[jross]

The government regulates how all/most land is used and developed, but it only owns about 30% of the land.

Once, the government bought land from me at a price (eminent domain).  I did not want to sell, but I was paid the market price.  Being paid matters.

I buy and sell my property at market-driven prices.  The title has my name on it rather than the government's.

I do question the right of a government to charge property taxes on the property I own.  It seems I'm somehow leasing the property from the government rather than paying a contribution for government-offered community services.  In end, taxes do not imply government ownership.  I still own the property.

[mspart]

I agree, but failure to pay your property taxes can result in forfeiture I've heard.   Just pay the rent (taxes I mean) and all is well. 

mspart

[mspart]

Back to the topic,  it seems they are concerned about rent increases and capping those.   But are they going to cap property tax increases as well?  That would be difficult because they are a combination of assessed value and mill rate.   Mill rate can't go up more than 5% and assessed value can't go up more than 5%.   And what if the owner pays the utilities.   Are those going to be capped as well?   What about fees for electricians or plumbers that work for a property owner.  Will those be capped as well.  

If capping rents is a good idea, then protecting the property owner is also a good idea.   Thoughts?

mspart