The CARES Act + Landlords
Last Friday (3/17/2020), the Coronavirus Aid, Relief, and Economic Security Act, commonly referred to as the "CARES" Act, was signed into law. It is wide-sweeping legislation that impacts a significant number of industries in an effort to assist those affected by the COVID-19 pandemic, specifically the financial hardships that have resulted for many individuals and businesses.
As it relates to landlords and property managers, the Act does the following:
Significantly increases the amount of money an individual may receive while on unemployment, which may assist tenants who have experienced a change in employment status in making their monthly rent payments and/or offering reasonable payment plans. It also expands the eligibility of who may be able to receive unemployment.
Gives landlords the opportunity to request forbearance from their lenders on federally backed loans.
Imposes a temporary moratorium on evictions for any housing receiving federal funds and/or for any housing with an underlying mortgage that is federally backed. Thus, subsidized housing, tax credit housing, and Section 8 tenancies could all be impacted by this, as well as housing that does not directly receive federal funds, but that has a federally backed mortgage.
In addition to the above, states and local municipalities may still enact their own relief measures. At this time, the moratorium on evictions in Michigan goes until April 17, 2020, but this could be changed in the event the pandemic does not show signs of retreat by then.
As always, Rental Management One is working and here to assist you and your clients!