RENT Magazine Q3 '21

Forbearance and Tenant Protections Extended

“While COVID-19 cases are declining and many homeowners continue to emerge from forbearance, many renters, who are unable [to] benefit from rising home prices, have not financially recovered from the pandemic. To help those and to help multifamily property owners maintain their properties, FHFA is extending the multifamily COVID-19 forbearance and tenant protections through the end of September 2021.” - FHFA Director Mark Calabria

Effectively, this means:

Multifamily property owners with Freddie Mac or Fannie Mae financing have until the end of September to enter a new or modified (if eligible) forbearance if they can prove financial hardship due to the Covid-19 pandemic. Any property owner who enters into a forbearance agreement is required to inform tenants, in writing, of all tenant protections that are in place during the property owner’s forbearance and repayment period. This includes an agreement to suspend all nonpayment of rent eviction activity for the entire duration of the forbearance period. Tenants are to be given notice to vacate at least 30 days prior to the expected execution date, and the property owner must not charge late fees or penalties for nonpayment of rent. Additionally, tenants are to be granted some flexibility in regard to the repayment of back-rent owed.

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