Multifamily Borrowers Now Eligible for Forbearance through March 31, 2021
Washington D.C. – Dec. 23, 2020 (PRNewswire) — To continue to assist renters in multifamily units and support Fannie Mae-financed multifamily property owners experiencing difficulties during this period of financial uncertainty, Fannie Mae (OTCQB: FNMA) today announced the extension of its multifamily COVID-19 forbearance program through March 31, 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 December 31, 2020.
For any Fannie Mae-financed multifamily properties with a new or modified forbearance plan as the result of a financial hardship due to the COVID-19 national emergency, 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.
“As the COVID-19 pandemic continues to affect communities across the United States, Fannie Mae is proud to extend forbearance options to protect multifamily tenants and assist property owners financially impacted by COVID-19,” said Michele Evans, Executive Vice President and Head of Multifamily. “The forbearance extension will continue to safeguard renters by suspending all evictions for nonpayment of rent and allow for flexible repayments, which will help keep people in their apartments.”
Here to Help
Since March, 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 new Renters Resource Finder tool.
These and the many other resources, including KnowYourOptions.com, that we make available are part of our ongoing Here to Help education effort, aimed at helping homeowners and renters impacted by COVID-19 understand the options available to them. For renters, KnowYourOptions.com provides straightforward information to understand rent relief and assistance options and to understand the available tenant protections.
Renters in a multifamily property financed by Fannie Mae also have access to the Disaster Response Network’s HUD-approved housing counselors who can help navigate the broader financial challenges many are facing. The Disaster Response Network can be accessed from the Renters Resource Finder on KnowYourOptions.com, or by calling 877-833-1746.
About Fannie Mae
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