FHFA Extends COVID-19 Multifamily Forbearance through March 31, 2021
Today, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will continue to offer COVID-19 forbearance to qualifying multifamily property owners through March 31, 2021. The Enterprise programs were set to expire December 31, 2020.
Property owners with Enterprise-backed multifamily mortgages can enter a new or, if qualified, modified forbearance if they experience a financial hardship due to the COVID-19 emergency.
Property owners who enter into a new or modified forbearance agreement must:
Inform tenants in writing about tenant protections available during the property owner's forbearance and repayment periods; and
Agree not to evict tenants solely for the nonpayment of rent while the property is in forbearance.
Additional tenant protections apply during the repayment periods. These protections include:
Giving tenants at least a 30-day notice to vacate;
Not charging tenants late fees or penalties for nonpayment of rent; and
Allowing tenant flexibility in the repayment of back rent over time, and not necessarily in a lump sum.