The Federal Housing Finance Agency on Wednesday gave property owners more leeway to postpone payments on multifamily mortgages for coronavirus-related hardships if they provide relief to their renters as well.
“Due to the continued presence of COVID-19 in our communities and its disproportionate impact on renters, FHFA will extend forbearance multifamily offerings and tenant protections beyond the end of the year and through the first quarter of 2021,” said Director Mark Calabria in a
The announcement by the government-sponsored enterprises’ regulator and conservator followed
Multifamily forbearance recipients can’t charge penalties for, or engage in evictions, solely for nonpayment, must provide all tenants with a written notice of rights, flexibility in repayment, and where applicable, 30-day notices to vacate, according to the FHFA. Repayment of back rent over time should “not necessarily” be in a lump sum.
Congress has agreed on a relief bill that would provide some broader rental and other assistance for hardships related to the pandemic, including an extended eviction ban, but at press time it was still pending President Trump’s signature. Certain jurisdictions also have other related coronavirus-related contingencies in place for rental and owner-occupied housing markets.
For single-family loans, forbearances related to coronavirus-related hardships are offered on more of an ongoing basis through
Also, the FHFA earlier this month
The Federal Housing Administration also has a ban on single-family evictions and foreclosures that has been extended until Feb. 28, 2021. There are generally exceptions allowed for vacant and abandoned properties.
