These last few weeks have been challenging for lawmakers and their staff who have worked night and day under extraordinary circumstances to craft a third package of provisions to address the COVID-19 crisis, which passed last week.
The bill includes some important supplemental funding provisions for key affordable housing programs.
Highlights include:
· Tenant Based Rental Assistance — $1.25 billion
· Public Housing Operating Fund — $685 million
· Native American Programs — $300 million
· Housing Opportunity for Persons with AIDS — $65 million
· Community Development Block Grant (CDBG) — $ 5 billion
· Homeless Assistant Grants — $4 billion
· Project Based Rental Assistance — $1 billion
· Housing for the Elderly — $ 50 million
· Housing for Persons with Disabilities — $15 million
The package also includes two additional provisions of interest to the affordable housing community:
· Forbearance of Residential Mortgage Loan Payments for Multifamily Properties with Federally Backed Loans. The provision provides up to 90 days (30 days at a time) of forbearance for multifamily borrowers with a federally backed multifamily mortgage loan who have experienced a financial hardship. Borrowers receiving forbearance may not evict or charge late fees to tenants for the duration of the forbearance period. Applicable mortgages include loans to real property designed for five or more families that are purchased, insured or assisted by Fannie Mae, Freddie Mac or HUD.
· Temporary Moratorium on Eviction Filings. The provision provides a 120-day moratorium on eviction filings, fees or penalties for tenants for non-payment of rent where the landlord’s mortgage on that property is insured, guaranteed, supplemented, protected, or assisted in any way by HUD, Fannie Mae, Freddie Mac, the rural housing voucher program or the Violence Against Women Act of 1994.
We joined our ACTION partners suggesting that a permanent 4 percent minimum credit and one-year extensions for the 10 percent test deadlines, placed-in-service deadlines, and the rehabilitation expenditure deadlines would be most helpful in the short term. While Congress ultimately focused the third COVID-19 package on stabilization of the economy, we understand a fourth package to promote recovery is already in the works. We believe this would be an appropriate vehicle to explore additional housing credit provisions to respond to the current crisis. To that end, we have been in close contact with House leadership and Ways and Means Committee Chairman Richie Neal (D-NY), as well as with our congressional champions.
In addition, we are working with our industry partners to explore with the White House, Department of the Treasury, and the Internal Revenue Service regulatory action to help the affordable housing community weather the immediate crisis.
As mentioned above, in the coming days and weeks, we will continue our close contact with our congressional champions to chart the best path forward for our LIHTC proposals. We appreciate the leadership and support of our Senate champions: Maria Cantwell (D-WA), Ron Wyden (D-OR), and Todd Young (R-IN) and our House champions: Suzan DelBene (D-WA), Don Beyer (D-VA), Kenny Marchant (R-TX), and Jackie Walorski (R-IN) as well as that of Senate Minority Leader Chuck Schumer (D-NY), House Speaker Nancy Pelosi (D-CA), and House Ways and Means Committee Chairman Richie Neal (D-MA). And we appreciate all that you do to make sure our champions know what measures will best help address the affordable housing crisis in their States and Districts. There is no substitute for “back home” feedback, and we thank you for your willingness to answer the call to action when needed.
We know these are trying times raising many questions and concerns. If we can be of any assistance, please do not hesitate to reach out to us. Take good care, and stay safe!