U.S. Senator Kamala Harris Introduces Bill to Provide Rent Relief

With the cost of housing continuing to rise across the country, U.S. Senator Kamala D. Harris (D-CA) recently introduced legislation to provide rent relief for working families struggling to pay their bills. The Rent Relief Act would create a new refundable federal tax credit for renters who pay more than 30% of their income on rent and utilities. Senator Harris was joined in the introduction by Senators Dianne Feinstein (D-CA), Richard Blumenthal (D-CT), and Maggie Hassan (D-NH).

“America’s affordable housing crisis has left too many families behind who struggle each month to keep a roof over their head,” said Senator Harris. “This bill will ensure no family is priced out of the basic security of a place to live. Bolstering the economic security of working families would strengthen our country and increase opportunity.”

In Massachusetts, nearly 20% of middle income households and over 45% of low income households pay more than 30% of their income to housing costs. In Metro-Boston, one in every four renters pays more than half of their income for housing.

The proposed tax credit would be available to households earning up to $100,000 per year, or $125,000 in certain high cost jurisdictions. The credit amount would be determined based on a taxpayer’s income and the amount of rent paid in excess of 30% of their income.  Under the bill, as a taxpayer’s income grows, the credit amount decreases.

The Washington Post reports that Harris’s bill was influenced by a similar though smaller plan written by the Terner Center for Housing Innovation at University of California Berkeley that was estimated to cost $76 billion and would “potentially bring an end to homelessness” by giving renters the money they need to avoid eviction. Similar legislation has been introduced in the House by Rep. Joseph Crowley (D-NY).