Federal Housing Finance Agency Announces COVID-19 Forbearance to Continue for Qualifying Multifamily Property Owners

Previously scheduled to expire on September 30, 2021, the Federal Housing Finance Agency (FHFA) announced on Friday (9-24-21) that Freddie Mac and Fannie Mae (the Enterprise) will continue to offer COVID-19 forbearance to qualifying multifamily property owners, as needed, subject to the tenant protections FHFA has imposed during the pandemic. This marks the fourth extension of the programs. FHFA will allow the Enterprises to continue offering COVID-19 forbearance to qualified multifamily owners, unless otherwise instructed by FHFA.

Acting FHFA Director Sandra L. Thompson said, “Given the uncertain nature of this pandemic, FHFA is taking further action to protect renters, property owners, and the mortgage market.”

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: 1) inform tenants in writing about tenant protections available during the property owner’s forbearance and repayment periods; and 2) agree not to evict tenants solely for the nonpayment of rent while the property is in forbearance. Additional tenant protections will also apply during the repayment periods.