Renters could potentially benefit from Kamala Harris's past support for affordable housing.

• Vice President Kamala Harris secured enough support to become the presumptive democratic nominee.
• As senator and vice president, Harris has been a strong advocate for affordable housing.

It is uncertain how much Vice President Kamala Harris' policies will align with President Joe Biden as she prepares to become the Democratic nominee for president.

Throughout her career, Harris has consistently advocated for affordable housing.

On July 16, Harris wrote on X that every American should have access to affordable housing, as per the Biden administration's proposal to limit rent increases to 5% for landlords with 50 or more rental units, or else lose federal tax breaks.

Harris' press secretary did not respond to a request for comment.

Experts predict where Kamala Harris could stand on tax policy.

Harris' record on housing issues

As the attorney general of California, Harris played a key role in drafting and passing the California Homeowner Bill of Rights, a set of laws aimed at safeguarding homeowners from unethical practices. This bill took effect on January 1, 2013.

In 2012, thousands of homeowners who lost their homes due to improper foreclosure or fraud received benefits from a $18 billion agreement secured by Harris as part of a national multistate settlement.

In 2018, Senator Harris presented the Rent Relief Act, which provides tax credits to low-income renters who spend more than 30% of their income on rent and utilities.

In 2019, Harris presented a revised version of the bill that included a Treasury mechanism to pay the tax credit on a monthly basis to eligible households, and capped the credit at 100% of small area fair market rents instead of 150% of FMR.

The U.S. Department of Housing and Urban Development recently unveiled the recipients of an $85 million grant under the Pathways to Removing Obstacles for Housing, or PRO Housing, initiative, which aims to boost construction activity and reduce housing and rental costs for American families.

The announcement from Harris about budgeting $5.5 billion through HUD was followed by news that aimed to improve affordable housing, stimulate economic growth, increase wealth, and tackle homelessness in various American communities.

The rising homelessness rates and burdensome costs to buy or rent have led to the implementation of such policies in 2023, where a record 653,100 people experienced homelessness, an increase of 196,500 from the previous year, as reported by the Harvard University Joint Center for Housing Studies.

'There's potential for a lot of good'

The Biden Administration's latest housing policies aim to increase affordable housing supply and reduce costs for buyers and renters.

Experts predict that Harris's campaign will continue with similar housing policy plans, as she has been involved in Biden's housing policy-making.

"Jacob Channel, a senior economist at LendingTree, stated that affordable housing and zoning have been a topic of discussion for his client for some time. He believes that if the Biden administration continues on its current path, there is potential for positive outcomes."

As Harris's candidacy gains momentum, discussions about her 2020 campaign proposal, the LIFT the Middle Class Act, have resurfaced.

Qualifying middle- and working-class Americans would receive a refundable tax credit of up to $3,000 per person or $6,000 per married couples filing joint tax returns, under the bill.

Some experts suggest that the LIFT Act could be more beneficial for renters than the 5% rent cap increase proposed by Biden in July.

The proposal suggests that Congress impose a 5% rent increase cap on landlords with 50 or more units, or else lose their federal tax breaks.

An associate professor of finance at Georgetown University, Francesco D'Acunto, stated that the issue with the rent cap is that it may alter the supply of housing.

Although the rent cap may give consumers the impression that prices will not rise above a specific amount, it could result in unfavorable consequences, such as landlords removing their properties from the rental market, according to Karl Widerquist, an economist and professor of philosophy at Georgetown University.

Channel clarified that landlords who lose access to tax breaks can still increase rents, and the plan would not apply to new construction or buildings undergoing significant renovations.

D'Acunto stated that the tax credit would not cause the same distortions as the rent cap and would specifically address the negative consequences of rent inflation.

The LIFT the Middle Class Act has faced opposition in the past, but Widerquist considers it a step in the right direction, even though it's not a flawless policy.