As we shared in the most recent Multifamily Wire, the federal eviction moratorium implemented by the Centers for Disease Control and Prevention (CDC) is set to expire on July 31, 2021. The eviction moratorium has been in place as a protection for renters during the COVID-19 pandemic.
Yesterday, FHFA announced that renters in GSE-backed multifamily properties must be given at least 30 days’ notice before they can be required to vacate a property for non-payment of rent. As our other Multifamily Wire’s have expressed, this already applied to all GSE-backed properties under the CARES Act, regardless of forbearance status, and FHFA’s announcement is a good reminder for our borrowers.
In addition, Fannie Mae encourages that all lines of available Emergency Rental Assistance be exhausted before any eviction proceedings begin.
CFPB Emergency Rental Assistance Provisions
Emergency Rental Assistance funds allocated in the American Rescue Plan Act are still available across the country to assist landlords and renters who are behind on their rental payments.
To facilitate access to these resources, the Consumer Financial Protection Bureau (CFPB) has developed new tools to help renters and landlords. This week, the CFPB launched a new lookup tool, the Rental Assistance Finder, where renters and landlords can access links to local programs offering assistance. This site also includes information to help renters and landlords navigate various financial hardships that they may be facing related to the pandemic.
As the federal moratorium comes to an end, we encourage you to share this resource with your Borrowers. We also encourage Borrowers to share available resources with their residents.
Our Renters Resource webpage provides options for relief, information on our Renters Resource Finder tool, and access to Disaster Response Network counselors who can guide renters toward even more resources.
Fannie Mae expects that Borrowers will comply with all applicable laws, including eviction protections and that Borrowers will pursue access to available Emergency Rental Assistance. Additionally, we expect that Lenders will work with their counsel to understand these laws and respond to any reports of potential non-compliance.
More detailed information about the 30-day notice to vacate requirement will be provided via an update to the Multifamily Selling and Servicing Guide in the coming days.