WASHINGTON, D.C. — Freddie Mac has changed its previously announced Multifamily COVID-19 forbearance program in three ways to better align with the federally enacted Coronavirus Aid, Relief and Economic Security (CARES) Act. The program allows Freddie Mac’s multifamily borrowers to defer their loan payments for 90 days if they can show hardship as a consequence of the COVID-19 outbreak and if they receive approval from their lenders, which are part of Freddie Mac’s Optigo network.
The first change to the program is an extended deadline for multifamily owners to enter forbearance due to COVID-related hardships. The new deadline is until the end of the year or the end of the federally declared emergency period, whichever occurs first. The previous end of the program was set for Aug. 1.
The agency also revised its eviction policy pertaining to borrowers that enter forbearance, saying none of the borrowers’ residents can be evicted, whether or not they can prove their nonpayment stems from COVID-19-related hardships.
The third change is participating owners are required to waive late fees, penalties or other charges related to tenant nonpayment of rent during the forbearance period.
“The program has already proved to be an important source of relief for multifamily operators and residents who are struggling financially as a result of this national crisis,” says Deborah Jenkins, executive vice president and head of Multifamily for Freddie Mac.
The CARES Act is a $2.2 trillion stimulus package that was passed into law March 27. The package is meant to provide financial aid to individuals, corporations, the public health sector, state and local governments, education and small businesses.