07 Jun Fannie Mae: Protections for Renters Affected by COVID-19 Extended
June 3, 2021
Source: Fannie Mae
Multifamily Borrowers Now Eligible for Forbearance through September 30, 2021
WASHINGTON, DC – To continue to support renters in multifamily units and Fannie Mae-financed multifamily property owners experiencing financial difficulties as COVID-19 persists, Fannie Mae (FNMA/OTCQB) today announced the extension of its multifamily COVID-19 forbearance program through September 30, 2021. The program, which requires landlords to suspend all evictions for renters unable to pay rent during the forbearance period, was formerly set to expire on June 30, 2021.
For any Fannie Mae-financed multifamily properties with a new or modified forbearance plan as the result of a financial hardship due to COVID-19, the property owner must inform tenants in writing about tenant protections available during the property owner’s forbearance and repayment periods. In addition, the borrower is required to provide tenant protections, which include:
- Allow the tenant flexibility to repay back rent over time and not in a lump sum;
- Not charge the tenant late fees or penalties for non-payment of rent; and
- Give the tenant at least a 30-day notice to vacate.
“Fannie Mae remains committed to supporting renters and multifamily property owners as COVID-19 continues to financially impact many people in the United States,” said Michele Evans, Executive Vice President and Head of Multifamily. “By extending the forbearance program for Fannie Mae multifamily borrowers, we are also extending essential protections and flexibilities for renters, which will help keep people in their apartments as the economy continues to improve.”
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