FHFA Extends COVID-19 Multifamily Forbearance through September 30, 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 September 30, 2021. The Enterprise programs were set to expire June 30, 2021.

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.

Posted: June 3, 2021