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CARES Act - Housing Provisions

Housing Provisions in the CARES Act

 

Forbearance and Moratorium on Foreclosures

The bill provides American homeowners with important protections to help keep them in their homes. It prohibits foreclosures on all federally backed mortgage loans for a 60-day period beginning on March 18, 2020. This bill provides up to 180 days of forbearance for borrowers of a federally backed mortgage loan who have experienced a financial hardship related to the COVID-19 emergency. Applicable mortgages include those purchased by Fannie Mae and Freddie Mac, insured by HUD, VA, or USDA, or directly made by USDA. The authority provided under this section terminates on the earlier of the termination date of the national emergency

concerning the coronavirus or December 31, 2020.

 

This bill also provides up to 90 days of forbearance for multifamily borrowers with a federally backed multifamily mortgage loan who have experienced a financial hardship. Borrowers receiving forbearance may not evict or charge late fees to tenants for the duration of the forbearance period. Applicable mortgages include loans to real property designed for 5 or more families that are purchased, insured, or assisted by Fannie Mae, Freddie Mac, or HUD. The authority provided under this section terminates on the earlier of the termination date of the national emergency concerning the coronavirus or December 31, 2020.

 

Moratorium on Evictions

The measure also suspends evictions for 120 days following the bill’s enactment on March 28, 2020. Landlords are prohibited from initiating legal action to recover possession of a rental unit or to charge fees, penalties, or other charges to the tenant related to such nonpayment of rent where the landlord’s mortgage on that property is insured, guaranteed, supplemented, protected, or assisted in any way by HUD, Fannie Mae, Freddie Mac, the rural housing voucher program, or the Violence Against Women Act of 1994.

 

 

Department of Housing and Urban Development (HUD)

Tenant-Based Rental Assistance

$1.25 billion to allow public housing agencies (PHAs) to respond to coronavirus and the ability to keep over 2.2 million families stably housed even when facing a loss of income. Allows PHAs the flexibility necessary for the safe and effective administration of these funds while maintaining fair housing, nondiscrimination, labor standards, and environmental protections.

  • $850 million for Administrative fees, awarded via 2020 formula (Admin fees can be used for housing payments and cleaning)
  • $400 million for PHA shortfall prevention, awarded via application

 

 

Public Housing Operating Fund

$685 million for PHAs to carry out coronavirus response for the operation and management of almost 1 million public housing units. Allows PHAs the flexibility necessary for the safe and effective administration of these funds while maintaining fair housing, nondiscrimination, labor standards, and environmental protections.

 

Native American Programs

$300 million to help Indian tribes and tribally designated housing entities prevent, respond to, and prepare for coronavirus. This includes not less than $200 million in formula funding through the Native American Housing Block Grants program and up to $100 million in imminent threat grants through the Indian Community Development Block Grant program.

  • $200 million for Native American Housing Block Grants, grantees are Tribally designated housing entities, awarded via 2020 formula
  • $100 million for Indian CDBG, grantees are Tribal governments, awarded via application

 

 

Homeless Assistance Grants

$4 billion for Emergency Solutions Grants to address the impact of coronavirus among individuals and families who are homeless or at risk of homelessness and to support additional homeless assistance, prevention, and diversion activities to mitigate the impacts of the pandemic.

  • $4 billion total, grantees are States and units of local government, awarded via formula
  • $2 billion, awarded via 2020 formula within 30 days
  • $2 billion, awarded via new formula based on need and COVID-19 impact, allocated on a rolling basis

 

Project-Based Rental Assistance

$1 billion to ensure there is no loss of housing for low-income individuals and families living in project-based rental assistance properties who may experience economic hardship as a result of coronavirus, and to ensure housing providers can take the necessary actions to prevent, prepare for, and respond to the pandemic.

  • These funds will be granted to property owners or sponsors, awarded via contract modification or grant.

 

Housing for the Elderly

$50 million to maintain operations at properties providing affordable housing for low-income seniors and to ensure housing providers can take the necessary actions to prevent, prepare for, and respond to the coronavirus pandemic. To ensure access to supportive services for this vulnerable population, this includes up to $10 million for service coordinators and the continuation of existing congregate service grants for residents of assisted housing projects.

 

Housing for Persons with Disabilities

$15 million to maintain operations at properties providing affordable housing for low-income persons with disabilities, and to ensure housing providers can take the necessary actions to prevent, prepare for, and respond to the coronavirus pandemic.

 

Housing Opportunities for Persons with AIDS

$65 million to maintain operations, rental assistance, supportive services, and other necessary actions to mitigate the impact of coronavirus on low-income persons with HIV/AIDS.

 

Kansas City Housing Authority and Rep. Cleaver Contacts

Should you have more questions or need more information about CARES Act housing provisions, you can always reach out to the Kansas City Housing Authority office at 816-968-4100 or visit the Housing Authority’s website here.

My office is always ready to assist should you need help with federal housing vouchers. I know this can be a confusing and private process, but we’re here to help you weather the storm. Please don’t hesitate to reach out to my office at 816-842-4545 or contact me through my website here.