A joint-agency program has been announced to provide COVID-19 relief to multifamily borrowers, as well the people who live in the apartments. It allows landlords to defer loan payments for 90 days.
Freddie Mac announced, in coordination with the Federal Housing Finance Agency (FHFA), a nationwide relief plan for its multifamily borrowers and residents of their apartment properties. Under the program, multifamily landlords whose properties are financed with a Freddie Mac Multifamily fully performing loan can defer their loan payments for 90 days by showing hardship as a consequence of COVID-19 and by gaining lender approval.
In turn, Freddie Mac is requiring landlords not to evict any tenant based solely on non-payment of rent during the forbearance period. Through partnership with its network of Optigo lenders and investors, Freddie Mac anticipates that the program can provide relief for up to 4.2 million U.S. renters across more than 27,000 properties.
“This program is historic in its size, and it has the potential to provide relief to millions of families in multifamily rental homes financed through a Freddie Mac loan,” said Debby Jenkins, executive vice president and head of Freddie Mac Multifamily. “Countless Americans are facing unimaginable hardships, and Freddie Mac is doing what we can to provide relief as our nation addresses this global pandemic.”
Freddie Mac Multifamily’s coronavirus forbearance program is modeled on its industry-leading disaster-relief forbearance plan introduced in the wake of Hurricane Harvey in 2017. Since then, Freddie Mac has implemented the forbearance plan in response to other natural disasters, including additional hurricanes and the California wildfires.
Read more about the Freddie Mac apartment relief program.