Economic Relief Available For Housing Needs Due To Coronavirus Crisis
Many real estate clients have been asking me what will happen to the many people who lose jobs or revenue from their businesses and are not able to make their mortgage loan payments. If you have been financially impacted as a homeowner, I encourage you to contact your lender to find out what solutions may be available to you. Fortunately, our lawmakers in Congress passed a $2 trillion COVID-19 economic relief package on March 27, 2020 with overwhelming bipartisan support.
As more guidance is released by the Administration on how these new programs will be implemented, updates will be provided by the government. According to information taken directly from the National Association of Realtors website, the economic relief package provides for:
Mortgage Forbearance – Borrowers of government-backed mortgages ((Fannie Mae, Freddie Mac, HUD, VA and USDA) can request up to 360-day payment forbearance without proof of hardship. No additional fees, interest, or penalties can be assessed for the forbearance.
Except for abandoned or vacant property, there may be no foreclosure actions for 60 days from March 18, 2020.
Owners of multifamily properties who were current on their mortgage payments as of February 1, 2020, and have federally insured, assisted, or supplemented loan (Fannie Mae, Freddie Mac, FHA or any loans backed or assisted by any branch of the federal government, including LIHTC) may request forbearance for 30 days due to financial hardship, with extensions of up to a total of 90 days.
Borrowers receiving the forbearance may not evict or charge late fees to tenants for the duration of the forbearance period.
Moratorium on eviction filings, or fees or penalties for tenants for nonpayment of rent for 120 days on properties insured, guaranteed, supplemented, protected, or assisted in any way by HUD, Fannie Mae, Freddie Mac, the rural housing voucher program, covered by the Violence Against Women Act of 1994.
$1.25b for Section 8 voucher rental assistance for seniors, the disabled, and low-income working families, who will experience loss of income from the coronavirus.
$5 billion for CDBG to help communities and states address COVID-19.
$1 billion for project-based rental assistance to make up for reduced tenant payments as a result of coronavirus.
$50 million for Section 202 Housing for the Elderly to maintain housing stability and services for low-income seniors.
$15 million for Section 811 Housing for Persons with Disabilities to make up for reduced tenant payments as a result of coronavirus.
Once again, for your own individual unique situation — contact your lender, as many of them have implemented their own policies in addition to the above remedies to help homeowners.
If you have any questions or if I may assist you with any real estate needs please don’t hesitate to reach out to me for help. Stay safe and know that help is available to assist homeowners with getting through this challenging period.