Fannie Mae and Freddie Mac will continue to offer COVID-19 forbearance to qualifying multifamily property owners through Sept. 30, the Federal Housing Finance Agency (FHFA) announced.
This is the third extension of the programs, which were set to expire on June 30, 2021. However, they remain subject to the continued tenant protections that FHFA imposed during the pandemic.
“While COVID-19 cases are declining and many homeowners continue to emerge from forbearance, many renters, who are unable benefit from rising home prices, have not financially recovered from the pandemic. To help those families still struggling to pay their rent 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 said.
Property owners with Fannie or Freddie multifamily mortgages can enter a new or, if qualified, modified forbearance if they experience a financial hardship due to the COVID-19 emergency. However, 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.
They must also agree not to evict tenants solely for the nonpayment of rent while the property is in forbearance. In addition, they must give tenants at least a 30-day notice to vacate and not charge late fees or penalties for nonpayment of rent. Further, they must allow for tenant flexibility in the repayment of back-rent over time.
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