The Federal Housing Finance Agency (FHFA) has extended COVID-19 forbearance to qualifying multifamily property owners as needed. The program was set to expire Sept. 30, 2021.
This is the fourth extension of the program and is subject to continued tenant protections, which include informing tenants in writing about tenant protections available during the property owner’s forbearance and repayment periods and agreeing not to evict tenants solely for the nonpayment of rent while the property is in forbearance.
“Given the uncertain nature of this pandemic, FHFA is taking further action to protect renters, property owners, and the mortgage market,” FHFA acting Director Sandra Thompson said.
During repayment periods, tenants also have additional protections. To take advantage of this program, multifamily property owners are required to:
- Give tenants at least a 30-day notice to vacate.
- Not charge tenants late fees or penalties for nonpayment of rent.
- Allow tenant flexibility in the repayment of back-rent over time, and not necessarily in a lump sum.
“As the pandemic continues, Freddie Mac is providing relief where needed to the multifamily market and to renters financially impacted by COVID-19 through this forbearance program,” Debby Jenkins, head of Multifamily at Freddie Mac, said. “While we have seen only a few loans start a new forbearance program recently, we remain positioned to support the market and renters who may be impacted by the unpredictability of the pandemic going forward.”
"As financial and economic uncertainties around COVID-19 persist, Fannie Mae is committed to providing continued forbearance options for Fannie Mae multifamily borrowers," Executive Vice President and Head of Multifamily Michele Evans said. “This will allow for the continuation of essential tenant protections to help keep renters in their apartments as the recovery process continues.”