Congress Gets Busy Responding to COVID-19, Housing Relief Faces Uncertainty
This week, President Trump signed into law H.R. 6201, the Families First Coronavirus Response Act , an aid package in response to the public health and economic emergency from the COVID-19 pandemic. Congress passed the legislation with broad bipartisan support. While housing relief is not included, the key components of the bill include: free coronavirus testing, paid emergency leave for employees at companies with 500 or fewer employees, unemployment insurance, food security initiatives, and increased federal Medicaid funding to states. This is the second COVID-19 aid package, of multiphase stimulus response. President Trump previously signed a bill that included over $8 billion in emergency funding for the treating and preventing the continued spread of COVID-19.
As the week ended, Congressional leaders and the Administration continued their negotiations on a third package that could reach $1 trillion, including small business assistance, direct cash payments to Americans and other financial support of industries heavily impacted by the pandemic. However, housing relief to multifamily market remains an unknown. NAHMA and our industry colleagues have been advocating for additional targeted relief to potential renters and properties impact, through emergency rental assistance and financial mitigation for properties. Over the weekend and into next week, lawmakers will continue to respond to the COVID-19.
We urge you to contact your Member of Congress and request that adequate relief be provided, including fully funding all rental assistance and vital affordable housing programs during the COVID‐19 pandemic. Please see NAHMA’s recent Grassroots Alert for additional details.
Administration Provides Relief to Single-family Market
This week, HUD authorized the Federal Housing Administration (FHA) to implement an immediate moratorium on foreclosures for single-family homeowners with FHA-backed mortgages for the next two months (60 days). HUD directed mortgage servicers to halt all new foreclosure actions and suspend the ones in progress. The press release is available HERE.
Similarly, the Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie to suspend foreclosures for impacted single-family homeowners with Fannie or Freddie-backed mortgages for at least two months (60 days). The press release is available HERE.
House Committee Releases Stimulus Plan
On March 18, House Financial Services Committee Chairwoman Maxine Waters (D-CA) released a comprehensive relief plan for a fiscal stimulus in response to the COVID-19 pandemic. In addition to proposing direct cash payments, suspending consumer and small businesses credit payments, the plan includes $5 billion in emergency assistance to combat homelessness, a moratorium on evictions, foreclosures and repossessions of mobile homes, a suspension of rental and utility payments for public and HUD-assisted housing residents, and a forbearance for mortgages on rental properties. Additionally, the proposal calls for authorizing $10 billion for HUD’s Community Development Block Grant (CDBG) program and offering the necessary waivers and authorities to utilize federal funds that have previously been appropriated, including unused CDBG funds. Additional details of the proposal are available HERE.
Key Senator Highlights Need for COVID-19 Guidance for Housing Operators
On Wednesday, March 11th, Senator Sherrod Brown (D-OH)–the current ranking member of the Senate Committee on Banking, Housing and Urban Affairs—wrote a letter to Vice President Pence, HUD Secretary Ben Carson and USDA Secretary Sonny Purdue asking that the Administration and the White House Coronavirus Task Force provide guidance on how to keep federally-assisted housing managers, owners, staff and residents healthy and safe during the pandemic.
In the letter, Senator Brown pointed to specific steps the Administration should take, including providing guidance to operators about how to communicate with residents on quarantine protocol and how best to mitigate the spread of infections and providing the necessary resources to residents and managers facing financial stress due to the economic consequences of Coronavirus. The letter can be found HERE.