Fannie Mae (OTCQB: FNMA) last Friday announced its multifamily COVID-19 forbearance program has been extended indefinitely to provide continued support for Fannie Mae-financed multifamily property owners and renters in multifamily units experiencing financial difficulties due to COVID-19. 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 September 30, 2021.
“As financial and economic uncertainties around COVID-19 persist, Fannie Mae is committed to providing continued forbearance options for Fannie Mae multifamily borrowers,” said Michele Evans, Executive Vice President and Head of Multifamily. “This will allow for the continuation of essential tenant protections to help keep renters in their apartments as the recovery process continues.”
For any Fannie Mae-financed multifamily properties with a new or modified COVID-19 forbearance plan, the property owner must agree not to evict tenants solely for the nonpayment of rent while the property is in forbearance and inform tenants in writing about tenant protections available during the property owner’s forbearance and repayment periods, which include:
- Allowing the tenant flexibility to repay back rent over time and not in a lump sum;
- Not charging the tenant late fees or penalties for non-payment of rent; and
- Giving the tenant at least a 30-day notice to vacate.
Since March 2020, Fannie Mae has taken a number of actions to help renters facing financial hardship due to COVID-19, including extending eviction protections to multifamily renters when the property owner received a forbearance and announcing a Renters Resource Finder tool.
