Today, the Federal Housing Finance Agency (FHFA), announced that the Enterprises (Fannie Mae and Freddie Mac) will extend their existing multifamily forbearance programs for an additional three months to March 31, 2021. This is the second extension of the multifamily forbearance programs that were set to expire on December 31, 2020. The terms and conditions for this extension are the same as the prior extension.
Property owners with Enterprise-backed multifamily mortgages can enter a new or, if qualified, modified forbearance if they experience a financial hardship due to the COVID-19 emergency. Property owners who enter into a new or modified forbearance agreement must:
- Inform tenants in writing about tenant protections available during the property owner’s forbearance and repayment periods; and
- Agree not to evict tenants solely for the nonpayment of rent while the property is in forbearance.
Additional tenant protections apply during the repayment periods. These protections include:
- Giving tenants at least a 30-day notice to vacate;
- Not charging tenants late fees or penalties for nonpayment of rent; and
- Allowing tenant flexibility in the repayment of back rent over time, and not necessarily in a lump sum.
“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 addition to the requirements of the FHFA order, owners must comply with the national eviction moratorium that was extended to January 31, 2021 as part of the COVID relief package passed by Congress this week.
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