IceWaterCoup

I work in real estate private equity / multi-family development

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Why would you support rent control - which puts an arbitrary cap on operating income for real estate assets when we have national affordable housing programs such as section 8 and section 42 LIHTC which don't hurt the returns of developers? Remember, when you hurt returns you shoot yourself in the foot and depress new construction and development. Both of those programs also ensure that affordable housing is available for those who truly need it because their rental rates are based on income.

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Please don't listen to some clipboard reporters telling you that "the research isn't clear" that rent control doesn't hurt new construction. It does - and it would even more so now that we're in an environment with rising interest rates. Don't support this shit.

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Edit: doesnt* hurt

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Ah yes, another study by more clipboards who aren't involved in the business, thanks LA times. (eyeroll)

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As for the concerns about wait lists - there are only as many vouchers as HUD is willing to provide. Well, why not simply issue more vouchers you ask? Well it costs money to do that, whether you force HUD to subsidize rent or force developers to charge less in rent, you are simply trying to create value from nothing - that, unfortunately, is impossible

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Housing does not merely involve new construction either. Buildings need to undergo constant repairs and renovations over the years. What incentive would an owner/operator have to inject capital into projects if they can not raise rents? No capital expenditures is how you end up with broken appliances, leaking roofs, and creaking floors. Rent control encourages being a slumlord rather than a landlord

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@maxtotheJ

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They promote low income housing development in several ways, mostly throught HUD. For example, LIHTC or low income housing tax credits essentially reduces any tax liability you owe if you invest in the development of a low income housing project and actually house low income tenants. HUD checks that you are actually renting to low income tenants by auditing you and them. Typically you have to house low income tenants for ~15 years or more

Understood, just wanted to say that having done to due diligence myself for these kinds of properties, it would be VERY difficult to cheat