NAHMA USDA Update: USDA Rural Development Office Issues Stakeholder Announcement on Immediate Measures in Response to COVID19
A recently issued Stakeholders Announcement from USDA's Office of Rural Development, titled USDA Implements Immediate Measures to Help Rural Residents, Businesses and Communities Affected by COVID-19.
Please find below, a recently issued Stakeholders Announcement from USDA's Office of Rural Development, titled USDA Implements Immediate Measures to Help Rural Residents, Businesses and Communities Affected by COVID-19:
- Single Family Housing: Effective March 19, borrowers with USDA single-family housing Direct and Guaranteed loans are subject to a moratorium on foreclosure and eviction for a period of 60 days. This action applies to the initiation of foreclosures and evictions and to the completion of foreclosures and evictions in process.
- Multi-Family Housing: Tenant certifications due March 31, April 30 and May 31 for Multi-Family properties have been extended to June 30 with no late fees or overage charges, as allowed in Multi-Family guidance (HB-3-3560, Chapter 4, Section 4.11). Late fees on Section 515 mortgages will be waived, and Section 515 Annual Financial Statements due March 31 will be extended 30 days, as per Multi-Family guidance (HB-2-3560 Chapter 4, Section 4.16-H).
- Forbearance: USDA encourages all owners to work with impacted residents and families to adjust rent payments, enter into forbearance agreements, and lessen the impact on affected residents. At this time, no additional subsidy funding has been made available. If borrowers are temporarily unable to make loan payments, the Agency may waive late fees and enter into an official workout plan.
- Rural Business-Cooperative Service: Beginning immediately, through July 31, 2020, USDA Business and Industry Loan Guarantees (B&I) and Rural Energy for America Program (REAP) Guaranteed lenders may assist borrowers experiencing temporary cash flow issues by deferring payments for a period no longer than 120 days. The lender must notify The Agency in writing of any payment deferments. Rural Business-Cooperate Service intermediary borrowers continue to have authority to service loan portfolios independent of USDA.
The Stakeholder Announcement can be found HERE.
Manager, Government Affairs
National Affordable Housing Management Association
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703-683-8630 (ext 116)
NAHMA is the leading voice for affordable housing management, advocating on behalf of multifamily property managers and owners whose mission is to provide quality affordable housing