March 27, 2020

Congress Passes Coronavirus Relief Legislation 

This week, the U.S. House and Senate passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The comprehensive stimulus legislation is bipartisan agreement between the Democratic House, Republican Senate, and White House. President Trump has indicated he will sign it, this evening or over the weekend. CARES Act includes numerous programs and provisions to provide economic and financial relief to individuals, businesses, and governments impacted by the coronavirus. The CARES Act also includes several housing-specific provisions, including supplemental appropriations for HUD programs and forbearance for homeowners and multifamily properties. The bill also provides the HUD Secretary broad authority to waive existing regulations for certain HUD programs if necessary.  NAHMA is concerned about the that funding for rural housing programs and LIHTC relief was not included.  In the weeks ahead, we will work to get similar relief to those programs.  Congress is already taking steps being to develop a fourth relief package.  A complete summary of the bill is available on our member shared drive: HERE.  Below is highlight of the housing funding levels, provided in the bill:

Affordable Housing Funding Included CARES Act

***Relief similar to CDBG, is available through $150 billion relief fund that will be made available to States, Tribal governments, and local governments ***

Mortgage Payments, Foreclosures & Evictions (provided by BGOV)

• Borrowers with federally backed mortgages — including those that are insured by the Federal Housing Administration (FHA), guaranteed by the Veterans Affairs Department (VA), or purchased by Fannie Mae and Freddie Mac — who attest that they’re experiencing financial hardship due to Covid-19 could suspend their payments for 180 days, with a possible 180-day extension. They wouldn’t accrue additional interest or fees during that period.
• The measure would also prohibit foreclosures on homes with federally backed mortgages for at least 60 days starting March 18.
• Landlords with federally backed mortgages on multifamily properties could suspend their payments for as long as 30 days, with as many as two 30-day extensions. They couldn’t evict tenants or charge fees during that period.
• The measure would also suspend evictions for 120 days following the bill’s enactment on properties that have a federally backed mortgage or participate in a covered federal housing program (by HUD, Fannie Mae, Freddie Mac, the rural housing voucher program, or the Violence Against Women Act of 1994.).

Senator Merkely Introduces the Affordable HOME Act to Systematically Addresses Affordable Housing

On March 12^th, Senator Jeff Merkley (D-Oregon) introduced S. 3452, the Affordable HOME Act (Making Affordable Housing Opportunities More Equitable Act). This is a comprehensive bill designed to impact current policies and funding levels in affordable housing.

Addressing rural housing needs, the proposal would authorize the Multifamily Preservation and Revitalization program, allowing for loan restructuring and decoupling of rental assistance from USDA-backed mortgages as a way to preserve the current affordable housing stock in rural areas. This includes $1 billion over ten years for the construction of multifamily rental housing projects financed through USDA Section 515.  Also included are grants for nonprofits, resident cooperatives, tribal housing authorities, and public housing agencies or other state housing entities to acquire and preserve manufactured housing communities.  Several provisions impacting the Fair Housing Act are also included.  One provision would add source of income as a protected class under the Fair Housing Act, prohibiting landlords from denying leases to voucher households.  Restrictions on no-cause evictions and federal funding for right to counsel for people facing evictions, foreclosures, termination of a housing subsidy, or other housing issues are also included in the bill.

Additionally, S.3452 would invest $40 billion in the national Housing Trust Fund. The bill would also create an emergency rental assistance voucher program to provide an additional 1 million vouchers by 2030, including a set-aside for Native tribes who are not eligible to administer Housing Choice Vouchers. The proposal also includes $10 billion over ten years for permanent supportive housing.

The full text of the Affordable HOME Act can be found HERE.