FHFA Extends COVID-19 Multifamily Forbearance

FHFA recently announced that Fannie Mae and Freddie Mac will continue to offer COVID-19 forbearance to qualifying multifamily property owners through September 30, 2021.

Qualifying property owners must continue to provide tenant protections imposed by FHFA during the pandemic. Among other things, property owners must: (i) inform tenants in writing about tenant protections available during the property owner’s forbearance and repayment periods; and (ii) agree not to evict tenants solely for the nonpayment of rent while the property is in forbearance. In addition, property owners must: (i) give tenants at least a 30-day notice to vacate; (ii) not charge tenants late fees or penalties for nonpayment of rent; and (iii) allow tenant flexibility in the repayment of back-rent over time, and not necessarily in a lump sum.