Highlights from the Stimulus Bill of 12/20

Senator Portman (R-OH) worked hard to get a deal done on additional COVID-19 relief, and was a key negotiator on housing related issues, especially the Emergency Rental Assistance, detailed below.  The bill passed with only a handful of Senators and several Congressmen opposing it.  The bipartisan package authorizes a second round of PPP loans for the hardest hit small businesses, additional unemployment benefits, support for health care providers, additional funding for vaccine development and distribution, funding for testing and tracing, and funding for a litany of smaller programs.

The $25 Billion will be parceled out in a block grant to states on per person share with funds likely arriving by February.  Additionally, cities and counties with populations over 200,000 will receive a direct allocation of the Emergency Rental Assistance funds.

This new set of funds will have the following guidelines, mainly due to leadership by Senator Portman, providing for a block grant that is pretty hands off and gives states lots of flexibility. But there are a few key guardrails:

• $25 billion for emergency rental assistance and utility payments will be funded through the Coronavirus Relief Fund and administered by the U.S. Department of the Treasury;
• Assistance can cover up to 12 months of back and forward rent, with an additional three months in certain cases;
• The CDC’s eviction moratorium will be extended one month to Jan. 31.
• Households below 80 percent area median income (AMI) are eligible for rental assistance funds if they qualified for unemployment insurance or experienced reduced household income or financial hardship due to the pandemic; and are at risk of homelessness or housing instability;
• States and localities must prioritize households below 50 percent of AMI and/or those who have been unemployed for 90 days;
• Property Owner/Managers can apply for assistance on the resident’s behalf but tenant must cosign the application. Payments must be used to pay the resident’s rental obligations;
• Cities and states can make payments directly to Property Owner/Managers or utility companies on behalf of renters. If a Property Owner/Manager refuses to accept rental assistance, it goes directly to resident to pay to Property Owner/Managers or utility provider;
• Up to 10 percent of funds can be used to provide case management and other services intended to help keep households stably housed;
• Extends the deadline for spending previously allocated Coronavirus Relief Funds to Dec. 31, 2021

Congress also passed fiscal year 2021 appropriations (for the fiscal year that started October 2020) with increases for many of the regular housing and homelessness programs administered by HUD and the USDA. The spending bill likely provides enough funding to renew existing contracts for the Housing Choice Voucher program and Project-Based Rental Assistance. Congress also increased many other HUD programs for 2021.

Click here to read the Emergency Rental Assist section of 12-20 Stimulus bill. Umm There are 27 pages here:-0

https://realestateinvestingtoday.com/wp-content/uploads/2020/12/Emergency-Rental-Assist-section-of-12-20-Stimulus-bill.pdf

On the heels of Congress passing a $900 billion COVID-relief package, the Federal Housing Administration announced that it was extending their eviction and foreclosure moratorium as well as their loan forbearance policies through February 28, 2021.  Listed below is the full text of their release:

FHA EXTENDS OPTIONS FOR SINGLE FAMILY BORROWERS FINANCIALLY IMPACTED BY COVID-19
Extensions ensure borrowers can continue to seek assistance and avoid eviction and foreclosure while maintaining temporary policy flexibilities for lenders and servicers

WASHINGTON – Today, the Federal Housing Administration (FHA) announced it is extending the foreclosure and eviction moratorium for single family FHA-insured mortgages for an additional two months, through February 28, 2021. The FHA is also extending through February 28, 2021, the deadline for single family borrowers with FHA-insured mortgages to request an initial COVID-19 forbearance from their mortgage servicer to defer or reduce their mortgage payments for up to six months, which can be extended for an additional six months. In addition, today FHA also extended multiple temporary provisions for lenders and servicers to allow them to continue doing FHA business despite social distancing considerations.

This is the fourth extension of FHA’s eviction and foreclosure moratorium. The moratorium prohibits servicers from initiating or proceeding with foreclosure and foreclosure-related eviction actions for FHA-insured single family forward and reverse mortgages, except for those secured by legally vacant and abandoned properties. Further, FHA requires mortgage servicers to provide up to six months of COVID-19 forbearance when a borrower requests this assistance, and up to an additional six months of COVID-19 forbearance for borrowers who request an extension of the initial forbearance. Borrowers needing assistance must engage with their servicer to obtain an initial COVID-19 forbearance on or before February 28, 2021.

“Throughout this global pandemic, the Trump Administration has taken unprecedented steps to assist FHA-insured borrowers who are impacted by COVID-19,” said HUD Secretary Ben Carson. “Today’s foreclosure moratorium and forbearance extensions for single family homeowners ensure American homeowners continue to have the critical relief and support they need to get back to financial stability.” “COVID-19 has created hardships for millions of Americans. FHA will continue to assist borrowers who are struggling to regain their financial footing as a result of this pandemic. American homeowners should not be forced from their homes while they are seeking help,” said Assistant Secretary for Housing and Federal Housing Commissioner Dana Wade.

To assist lenders and servicers in continuing to supply FHA-insured affordable mortgage financing despite the considerations for social distancing, today FHA also extended:

• The timeframe for providing an insurance endorsement on single family mortgages in forbearance through March 31, 2021.
• Temporary re-verification of employment guidance and exterior-only appraisal inspection option through February 28, 2021.
• Temporary provisions for verification of self-employment, rental income, and 203(k) Rehabilitation Mortgage escrow accounts through February 28, 2021.

FHA encourages borrowers with FHA-insured mortgages who can make their mortgage payments to continue to do so. Those who are struggling financially because of COVID-19 should engage with their mortgage servicer -the entity to which they make their monthly mortgage payments. FHA provides post-COVID-19 forbearance loss mitigation options to assist borrowers with bringing their mortgage current. FHA does not require a lump sum payment at the end of any COVID-19 forbearance period.

Borrowers with FHA-insured mortgages seeking additional information on available options should visit FHA’s COVID-19 Resources for Homeowners web page on FHA.gov. Other homeowners are encouraged to visit the Consumer Financial Protection Bureau’s Coronavirus Mortgage and Housing Assistance web pages.