Stimulus for Affordable Housing

By: admin | March 31, 2020

On Friday March 27th the U.S. Congress passed the CARES (Coronavirus Aid, Relief, and Economic Security Act) the $2 trillion aid package, and sent it to President Trump.  He signed it late Friday.   

The bill provides more than $12 billion in funding to HUD for housing and homelessness programs.

Key Components include:

  • $4B for Emergency Solutions Grants (ESG) for homelessness assistance
  • $5B in CDBG
  • $1.25B for HCV Program
  • $1B for project-based Rental Assistance
  • $685MM for Public Housing
  • $300MM for tribal nations
  • $65MM for Housing for Persons with AIDS (HOPWA)
  • $50MM for Section 202 Housing for the Elderly
  • $15MM for Section 811 Housing for Persons with Disabilities\

The bill also institutes a moratorium on foreclosures for all federally backed mortgages, including those covered by HUD, USDA, FHA, VA, Fannie Mae, and Freddie Mac, for 60 days beginning on March 18, 2020. Under the bill, a borrower with a federally backed mortgage experiencing financial hardship due to coronavirus may also request a forbearance for up to 180 days, which may be extended for another 180 days at the request of the borrower.

The law allows multifamily housing owners with a federally-backed mortgage to request a forbearance for up to 30 days, which can be extended by another 60 days at the request of the borrower, on the condition that they agree not to evict tenants or charge tenants’ late fees.

The bill also institutes a moratorium on filings for evictions for renters in homes covered by a federally backed mortgage for 120 days of enactment.

The bill provides a temporary moratorium on evictions for most residents of federally subsidized apartments, including those supported by HUD, USDA or Treasury (Low Income Housing Tax Credit developments). The bill also institutes a moratorium on filings for evictions for renters in homes covered by federally backed mortgages for 120 days of enactment.

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