On March 4, the Federal Housing Finance Agency (FHFA), announced the Enterprises (Fannie Mae and Freddie Mac) will extend their existing multifamily forbearance programs for an additional three months to June 30, 2021. This is the third extension of the multifamily forbearance programs that were set to expire on March 31, 2021. The terms and conditions for this extension are the same as the prior extension.
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.
“COVID-19 continues to financially impact Americans across the country, thereby hindering many tenants' ability to pay their rent. To help tenants in financial distress and property owners, FHFA is extending the multifamily COVID-19 forbearance and tenant protections through the end of June 2021," said Director Mark Calabria.
In addition to requiring written tenant notification, the Enterprises have posted the tenant protections to their respective online multifamily lookup tool websites. Access Fannie Mae’s website here and Freddie Mac’s here.
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