Many apartment renters who fall ill, can't work, lose their job or can't pay their rent for some other reason related to the new coronavirus got a reprieve Monday in the same moment as some landlords, according to the Oklahoman.
The Federal Housing Finance Agency said Fannie Mae and Freddie Mac will offer mortgage forbearance to multi-family property owners on the condition they do not evict renters unable to pay because of the COVID-19 pandemic.
About half of apartment properties financed here the past two years were through the two government-sponsored enterprises, broker Mike Buhl said.
"The eviction suspensions are in place for the entire duration of time that a property owner remains in forbearance," the FHFA said in a press release. "The forbearance is available to all multifamily properties with (a Fannie- or Freddie-backed) performing multifamily mortgage negatively affected by the coronavirus national emergency."
FHFA Director Mark Calabria said, “Renters should not have to worry about being evicted from their home, and property owners should not have to worry about losing their building, due to the coronavirus. The multifamily forbearance and eviction suspension offered ... should bring peace of mind to millions of families during this uncertain and difficult time."
Fannie and Freddie "are working with mortgage servicers to ensure that these programs are implemented immediately so that property owners and renters experiencing hardship because of the coronavirus can get the assistance they need," Calabria said.
Local landlords who worked with the government-sponsored enterprises, as well as their renters, will be relieved to hear it, said Buhl, owner and managing broker of Commercial Realty Resources Co., based in Norman. Buhl specializes in apartment sales and tracks the multifamily market.
"We have heard from several owners that have expressed concern," Buhl said just before the offer of loan forbearance was announced. "I suspect most owners are aware of the potential of having to postpone rent for those most affected by this crisis. At this point, though, it doesn’t appear that every tenant is going to just stop paying rent.
