St. Paul Mayor Melvin Carter has proposed a significant change to the city's rent stabilization law, suggesting that rental properties built after 2004 should be exempt from the current 3% cap on rent increases. This change aims to stimulate housing construction, which has slowed down due to rising interest rates and construction costs, and is a response to concerns from developers regarding financing new projects. The proposal, part of Carter's larger budget plan for 2025, also includes a $133 property tax increase for median homeowners to fund housing initiatives and other city services. Advocacy groups that previously supported the rent control ordinance, which was passed by voters in 2021, may view this as a setback for tenant protections. Carter argues that facilitating housing supply is crucial for the city's future, acknowledging the need to balance development with the needs of vulnerable communities. The budget proposal will be discussed further in the mayor's annual address, highlighting a comprehensive approach to tackle public safety, downtown revitalization, and climate change.