Our Priorities: COVID-19

Homeowners who need financial assistance with their mortgages and other housing-related expenses can apply for help via the Homeowner Assistance Fund (HAF), a federal program designed to help households who have fallen behind due to COVID-19.   [rsnippet id="7" name="Global Article Footer"]

On or around August 2, 2021, the Treasury Department issued guidance for the Homeowner Assistance Fund (HAF), pursuant to section 3206 of the American Rescue Plan Act of 2021.

Under the Homeowner Assistance Fund, the Treasury Department will provide financial assistance in an aggregate amount of approximately $9.961 billion. The $9.961 billion will be distributed to the states and run at state level. Some states are using the funds that they have received to run pilot programs. As of today, approximately 18 states have pilot programs up and running.

[rsnippet id="7" name="Global Article Footer"]

The U.S. Government has allocated $45 billion for rent relief since December 2020, but that money has barely made an impact, and with the eviction moratorium about to run out, it’s likely this assistance money will never be used for its intended purpose. States, cities, and smaller municipalities have created more than 340 new programs in the wake of the COVID-19 pandemic to help distribute federal rental assistance dollars. However, according to Vox Media, the state programs, which have received the lion’s share of the funding, have only distributed a small percentage of the money they have received. The problem has been that while the notion of providing billions of dollars in much needed rental assistance, the devil was in the details to make sure the right people who actually needed the aid got it. That created a whole mess of red tape, forcing renters to provide proof of need and identity, something that the people in the most dire of circumstances are unable to produce. Additional problems are that while these programs were created and existed, not enough grassroots work was done to let the people know who needed the assistance that they were available to help. As such, only a small percentage of those in need of rent relief even knew relief was available to them. According to the National Multifamily Housing Council, a large majority of American renters made at least a partial rent payment in May. However, because most people consider their rent the most important bill they have to pay, they often eschew other required payments, or put themselves into a worse-off financial situation. Just because the rent has been paid, doesn’t mean money wasn’t borrowed, or credit card debt didn’t pile up, or valuable possessions weren’t sold - just to scrape by for another month. The Centers for Disease Control and Prevention’s (CDC) eviction moratorium is set to expire at the end of June, barring another extension. With there being court cases across the country saying the CDC exceeded its authority by imposing the moratorium in the first place, another extension seems less likely. This will force state and local governments to decide whether to keep their own moratoriums in place or have an onslaught of evictions begin as soon as July. This appears to be a lose-lose situation for local governments. If they keep the moratoriums in place without the rental assistance money getting to the people who need it, more mom-and-pop property providers will fall behind on their mortgage payments without the rent coming in to supplement it. As such, many of these property owners will pull their property from being available to rent, trimming further an already slim inventory of affordable housing. According to the Department of Housing and Urban Development, 41% of all rental units in America are owned by small business housing providers operating on very slim profit margins. These rentals tend to be less expensive than single family units or larger, corporate-owned, multi-family complexes. If they choose not to keep the moratoriums in place, evictions will skyrocket, backlog, and create mayhem, all the while many low-income individuals and/or families will have to find somewhere to sleep or risk homelessness. Either way, it’s not an ideal situation. Finding ways to streamline these rental assistance dollars - and quickly - is the best path to stemming the rent crisis and ensuring that everyone can have a roof over their head. [rsnippet id="7" name="Global Article Footer"]

Evictions have been banned for the past year because of the COVID-19 pandemic. That changed in a hurry. And just as quickly changed again. On May 5, Federal Judge Dabney L. Friedrich vacated the eviction ban established by the Centers for Disease Control and Prevention (CDC). This comes on the heels of a lengthy legal battle between the Alabama Association of REALTORS® and the U.S. Department of Health and Human Services. However, the Justice Department is appealing the decision on behalf of the CDC and Friedrich’s ruling has been stayed pending the high-stakes appeal. The ban was originally slated to expire June 30, but the CDC has extended the ban several times over the past year, meaning the June 30 date could have potentially moved even further into the future. The Alabama Association of REALTORS® were joined by the Georgia Association of REALTORS®, and other plaintiffs, in filing a lawsuit after the CDC extended the moratorium in November 2020. That lawsuit came when the CDC expanded the reach of its ban to include properties outside of those that were receiving federal assistance. The REALTORS® argued that more and more renters have been abusing these protections and have simply stopped paying rent. The main argument though, and likely the most important thing that led to Judge Friedrich’s decision, was that the federal government went too far by extending the moratorium to include properties that were outside the purview of the federal government. “It is the role of the political branches, and not the courts, to assess the merits of policy measures designed to combat the spread of disease, even during a global pandemic,” Friedrich wrote in the memorandum opinion, according to Inman.  “The question for the Court is a narrow one: Does the Public Health Service Act grant the CDC the legal authority to impose a nationwide eviction moratorium? It does not. “Because the plain language of the Public Health Service Act, 42 U.S.C. § 264(a), unambiguously forecloses the nationwide eviction moratorium, the Court must set aside the CDC Order, consistent with the Administrative Procedure Act and D.C. Circuit precedent. For the foregoing reasons, the plaintiffs’ motion for expedited summary judgment is granted and the Department’s motion for summary judgment and partial motion to dismiss are denied.” The CDC extended the moratorium last summer, at Thanksgiving, and then again two days before it was set to expire in March. “The COVID-19 pandemic has presented a historic threat to the nation’s public health,” CDC director Dr. Rochelle Walensky said in a statement to CNBC. “Keeping people in their homes and out of crowded or congregate settings — like homeless shelters — by preventing evictions is a key step in helping to stop the spread of COVID-19.” According to a March report issued by the Center on Budget & Policy Priorities, 15% of adult renters in America, or roughly 1.6 million Americans, were behind in their rent. Moody’s Analytical Report indicated that approximately $57 billion in back rent was owed in the month of January. Congress tried to eliminate as much of that as possible with $25 billion in rental assistance in the December stimulus package and an additional $27 billion in Biden’s American Rescue Plan that passed in March. On the local level, existing rental assistance programs are being bolstered and new programs are being launched. According to the National Low Income Housing Coalition, more than 200 of these programs are open and accepting applications. CNN reported that tenants must meet an income requirement, show they've lost income during the pandemic and demonstrate a risk of homelessness in order to qualify for the money. And while there is a stay in place and evictions aren’t going to start happening next week, whether the appeal overturns Friedrich’s decision or not will be determined by what judges are chosen for the panel. "The underlying ruling in this case is pretty weak, in my opinion," Shamus Roller, executive director of the National Housing Law Project told NPR. "Congress in December extended the CDC order. So clearly Congress thinks that the CDC has this authority. "It'll be a three judge panel that will review this. It will depend greatly on which three judges get selected." The Trump administration put in place several conservative federal judges who, if chosen, might view this moratorium as an example of governmental overreach. This explains why Roller said the judges chosen for this panel will be so important. [rsnippet id="7" name="Global Article Footer"]

Two days before it was set to expire, the Centers for Disease Control (CDC) announced that it was extending its nationwide eviction moratorium through the end of June. This puts an additional 90 days onto the moratorium, which was supposed to expire at the end of March. This moratorium, which was put in place in September 2020 as a way to try and assist renters who may have been financially impacted by the COVID-19 pandemic, has been challenged in courts throughout various states in the country. This moratorium, while helpful in theory, has created unintended consequences in the months since it came into existence. It has created a backlog of pending evictions because some renters aren’t paying their rent, and as soon as it is lifted, the courts will be deluged with eviction hearings. And secondly, it has thrust mom-and-pop landlords into a financial bind of their own, suddenly forced to make mortgage payments on properties in which they have not been receiving rent from their tenants. These properties also tend to have slim profit margins to begin with, meaning that after a couple months, the property owner is in danger of getting behind or even defaulting on the mortgage. The National Association of REALTORS® (NAR), has been at the forefront of the challenges to the moratorium and has successfully lobbied for federal rental assistance in an effort to prevent the problems created by the moratorium becoming a crisis that hurts both the landlords and the tenants. “NAR helped secure $25 billion in 2020 and another $21.55 billion (in March) in federal rental assistance funding, which can be paid directly to property owners,” said NAR chief advocacy officer Shannon McGahn in a press release. “This was critical to averting a multifamily real estate crisis, as many of our nation’s housing providers are mom-and-pop operations. “Our focus now turns to ensuring there is not just enough funding but also a smooth implementation of rental assistance while the various challenges to eviction bans work their way through the courts.” The CDC order has allowed for an eviction to be stayed if a renter declares that they have tried to make timely payments of their rent, meet certain employment and income requirements, and have pursued all appropriate government assistance. With the announcement of the extension in March, the CDC expanded the order to include renters “who are confirmed to have, who have been exposed to, or who might have been exposed to COVID-19 and take reasonable precautions to spread the disease.” And while this is a hit to the property owners, the housing providers can still evict tenants for non-financial reasons that would violate the landlord-tenant contract, including property damage and criminal activity. “Rental assistance averted two crises—one for mom-and-pop property owners who did not have a reprieve from their bills and relied on their rental income and one for tenants who would have been responsible for months of back rent when the eviction moratoriums expired,” McGahn said. “We must continue to look for ways to protect tenants and property owners from further financial turmoil while ensuring housing in America remains safe and stable for decades to come.” [rsnippet id="7" name="Global Article Footer"]

A definitive resource for landlords and renters to find the answers to questions regarding COVID-19, rights and protections, government announcements, and tools. Published and maintained by Avail.co How Coronavirus Spreads The virus that causes COVID-19 spreads relatively easily and quickly. Follow the CDC's best practices and guidelines to reduce the spread. Coronavirus Symptoms Read the CDC's guide to recognizing symptoms of COVID-19. If you're feeling sick or think you may have come into contact within someone who is infected, read this guide. How to Protect Yourself from Coronavirus There are ways to protect yourself from contracting COVID-19. Hint: social distancing really helps. What To Do If You're Sick Read the CDC's recommendations of what to do if you begin to feel sick. Don't take a chance, or worse, not take any action. See what the CDC recommends you do next. Congress Passes Third COVID-19 Federal Relief Package Get the summary and details of the three phases Congress approved as part of the coronavirus relief package. Financial Services Committee Responds to FAQs Members of Congress who make up the Financial Services Committee Respond to frequently asked questions regarding the CARES act. Read the questions and answers here. To see the entire list of resources, visit the original published posting here. [rsnippet id="7" name="Global Article Footer"]

If you have a federal backed mortgage and you are on the COVID-19 forbearance plan, you may be eligible for an additional three-month extension. According to the Federal Housing Finance Agency (FHFA), borrowers with mortgages backed by either Fannie Mae or Freddie Mac, who were on a forbearance plan as of the end of February, are eligible for an additional forbearance extension of up to three months, providing up to 15 months of coverage. This is up from the initial 12-month expiration date. This move comes on the heels of the FHFA extending multifamily forbearance policies in December 2020 and extending options for multifamily mortgages backed by Government Sponsored Enterprises (GSE’s) through the end of March. Additionally, moratoriums that were supposed to expire at the end of February on single-family foreclosures and real estate owned (REO) evictions were also extended to the end of March. FHFA’s Director Mark Calabria told Housing Wire that the company’s recent actions are to “help keep families in their home during the pandemic.” It is estimated that 2.7 million American homeowners are in forbearance and the forbearance portfolio volume has been steady between 5% and 6% for more than four months, according to a survey conducted by the Mortgage Bankers Association. The FHFA projected that the COVID-19 moratorium on foreclosures and REO evictions could cost Fannie Mae and Freddie Mac upwards of $2 billion. The Federal Housing Administration plans to monitor the impact of the pandemic on the market and has already reported that if risk factors on certain policies become untenable that they will sunset those policies. [rsnippet id="7" name="Global Article Footer"]

Buying your first home is exciting, but it also can be a little scary. Going from renter to homeowner is a big step, one you will not want to take without preparation and assistance. Several issues should be addressed early in the process, such as financing and whether you will work with a REALTOR®. A recent survey by the National Association of REALTORS® revealed that 88 percent of buyers reported using an agent to purchase their home.

Most buyers use agents who are referred by friends or family members.Jason Gutierrez with Berkshire Hathaway HomeServices, Don Johnson REALTORS® has spent more than a decade helping first-time homebuyers in the San Antonio area navigate the process. Gutierrez said 80 percent of his clients are first-time homebuyers. I recently talked to him about the local real estate market and how he helps his clients prepare to become homeowners.

January jobs numbers from the Bureau of Labor Statistics released late last week showed a small 0.4% rise in employment. While the rise was lower than many experts had anticipated, it does represent a change in direction from December’s net job losses.

While the number of workers on temporary layoff dropped in January, there was little change in the 3.5 million Americans who have been laid off permanently. In addition, four million Americans are still long-term unemployed, jobless for 27 weeks or more. Industry experts and analysts largely agree that moderate jobs growth like this reflects just how driven the economic recovery is by the ongoing COVID-19 pandemic. The question now, as widespread vaccination efforts get underway, is whether we will see a steady and accelerating recovery through the remainder of the year, or if we will be plagued with small increases and decreases in unemployment until herd immunity is achieved.



[rsnippet id="7" name="Global Article Footer"]

The recently enacted $2.3 trillion Consolidated Appropriations Act, 2021(the Act), which combined a $900 billion coronavirus relief bill as part of a larger $1.4 trillion omnibus spending and appropriations bill for the 2021 federal fiscal year, contains key provisions that directly impact the hard-hit real estate industry.

In particular, Section 501 of Subtitle A of Title V of Division N of the Act establishes the “Emergency Rental Assistance program” (ERA), which appropriates $25 billion through the U.S. Department of the Treasury (Treasury) to provide eligible households with direct financial housing assistance. The enactment of the ERA provides landlords, tenants, borrowers, potential buyers, financial institutions and small businesses with a necessary lifeline to weather the ongoing economic fallout from the COVID-19 pandemic.



[rsnippet id="7" name="Global Article Footer"]

Brooke Bayer ran through her mental list of must-haves as she searched this fall for an apartment to share with her boyfriend. They both needed office space. Their building had to welcome Hazel, her miniature schnauzer. And their new place had to be serious about pandemic safety protocols.

Policies at Southstar Lofts in Center City, where she lived until last month, had made her feel as safe as she could feel while COVID-19 cases skyrocketed and she called a multifamily building home. The apartment has increased cleaning in shared spaces, asked residents not to ride elevators with people from different households, and removed chairs from the lobby to discourage lingering, among other policies. Signs remind everyone that masks are mandatory, and people should keep their distance.

...Although tenants can’t be locked out for non-payment, the moratoria do not abate or cancel out their rent, and non-paying tenants fall deeper in debt every first of the month.

The analysis by Stout estimated the total amount of unpaid rent through January in New Jersey could be as much as $832 million.

Advocates note that the money is owed largely by tenants who fell behind in the first place because they had lost their jobs and much or all of their incomes.

“Just because a moratorium ends doesn’t mean everybody’s got their job back, and a great many people are going to have trouble paying their rent going forward,” said Matt Shapiro, president of the New Jersey Tenants Organization...



[rsnippet id="7" name="Global Article Footer"]

A moratorium on evictions is forcing small landlords on Long Island to run up credit card balances, take out loans and default on their own bills.

Sheriffs on the Island haven't carried out residential evictions since March, when the state began curtailing court activity in the early days of COVID-19.

With the virus straining many industries, thousands of Long Islanders have lost jobs and are struggling with basic expenses like rent. The government passed policies and bolstered benefits designed to protect renters. Only a fraction of that relief has reached landlords, and some small property owners are reeling...

[social_warfare]

A program designed to quickly pay rent and utility bills for people financially impacted by the COVID-19 pandemic has struggled to get money out the door.

The HOPE Grant program was announced by N.C. Governor Roy Cooper in October. By giving money to qualified applicants to pay rent, organizers hoped to help people struggling financially stay in this homes and also help landlords who depend on rental income.

On Thursday, Cooper and State Budget Director Charlie Perusse touted the program as a success in a press conference unveiling the governor’s budget proposal for this year.

“The HOPE Program that the Governor mentioned is a leader in the country. We were actually out in front of the federal government on this,” Perusse said of the program.

“The program received about $200 million in requests and we currently have gotten out about $125 million of that.”

But the program has spent less than half that amount, according to the agency administering the program...



[rsnippet id="7" name="Global Article Footer"]

There has been extensive press coverage about the need for an eviction moratorium during the COVID-19 pandemic, but little about the effect that moratorium has on residential landlords.

Congress attempted to help landlords indirectly in the original CARES Act, by making money available for rent relief. However, there wasn’t sufficient money, tenants were at a loss where to go to ask for such relief, and some tenants had no incentive to even ask for relief. The $900 billion December 2020 COVID-19 relief bill includes $25 billion for the Emergency Rental Arrears Program (ERAP). The new law allows landlords to apply for the tenant, if necessary. Both the tenant and landlord will benefit from this new rent relief law.

When then-President Trump signed the new COVID-19 relief bill into law, the Department of Treasury took quick action on the rent relief money.

Within days, a deadline of January 12, 2021, was set for eligible state and local governments to apply for money. An eligible local government is any such entity with a population of at least 200,000...



[social_warfare]

The COVID-19 pandemic is a historically unique event for all sectors. There’s no playbook, and it’s clear that only some of our experience through the housing crisis will help us to navigate today’s challenges. We’ve had to get comfortable with the wait-and-see strategy, ready to pivot on the latest regulatory guidance, jobs report, or stay-at-home order. As we head into 2021, there’s one segment of the housing market that remains an important bellwether even in these uncertain times: the first-time homebuyer market.

First-time homebuyers are important because they take a housing unit from the market, but don’t give one back, creating pure growth in homeownership. Over the past five years, the first-time homebuyer segment has grown tremendously. However, they have not been immune to the impact of the COVID-19 pandemic. To best support the health of this important segment of the housing market in the New Year, it’s helpful to have an idea of what first-time homebuyers have going for—and against—them.



[social_warfare]

Today’s average Millennial with aspirations of owning a home would do well not to give up. We’re talking about 25 to 38 year-olds who are first-time home shoppers and feel priced-out of the current market.

Compiled by Benton Capital Mortgage Lending, here are 10 solid housing and mortgage facts about the 2021 market that are encouraging to read as many Millennials stick to their homeownership hopes and dreams and stay ahead of the pack.



[social_warfare]

COVID-19 Assistance: Consumer Financial Protection Bureau (CFPB)  

 

COVID-19 Assistance: Housing & Urban Development (HUD)  

 

COVID-19 Assistance: Federal Housing Finance Agency  

 

COVID-19 Assistance: Federal Student Aid  

 

COVID-19 Assistance: National Association of REALTORS®