Over the last few weeks HUD has issued guidance regarding COVID-19 to users of various HUD business products.  We have received a number of questions from our members regarding the new guidance.  Based on these questions, we have highlighted a few items of particular interest below.

• Multifamily Q&A
• Paycheck Protection Program (PPP)
• Public Housing Q&A
• Single Family Q&A
• Office of Residential Care Facilities (ORCF) Q&A
• Rural Development Q&A
• Annual PHA Conference Cancelled

Multifamily Housing reissued their latest COVID-19 Q&A document on April 2, 2020 (does not include ORCF 232/241 properties)

Topics of interest include:

1. Guidance on messaging residents and staff on COVID-19
2. Access of vacant units for social distancing.
3. Guidance on essential employees
4. Emergency funds access
5. Annual recertification challenges
   • Timing
   • Self-certifications
   • Signatures
   • Forms 9887/9887-A
   • Documentation
6. Reserve for replacement usage
7. Surplus cash holdbacks
8. Financial statement deadlines

However, Section 4023 of the CARES Act specifically mentions mortgage payment relief available to projects.  That Section is included below:

EXHIBIT A

Section 4023 of the CARES Act

SEC. 4023. FORBEARANCE OF RESIDENTIAL MORTGAGE LOAN PAYMENTS FOR MULTIFAMILY PROPERTIES WITH FEDERALLY BACKED LOANS.

1. IN GENERAL.―During the covered period, a multifamily borrower with a Federally backed multifamily mortgage loan experiencing a financial hardship due, directly or indirectly, to the COVID–19 emergency may request a forbearance under the terms set forth in this section.
2. REQUEST FOR RELIEF.―A multifamily borrower with a Federally backed multifamily mortgage loan that was current on its payments as of February 1, 2020, may submit an oral or written request for forbearance under subsection (a) to the borrower’s servicer affirming that the multifamily borrower is experiencing a financial hardship during the COVID–19 emergency.
3. FORBEARANCE PERIOD.―
   1. IN GENERAL.―Upon receipt of an oral or written request for forbearance from a multifamily borrower, a servicer shall―
      1. document the financial hardship;
      2. provide the forbearance for up to 30 days; and
      3. extend the forbearance for up to 2 additional 30 day periods upon the request of the borrower provided that, the borrower’s request for an extension is made during the covered period, and, at least 15 days prior to the end of the forbearance period described under subparagraph (B).
   2. RIGHT TO DISCONTINUE.―A multifamily borrower shall have the option to discontinue the forbearance at any time.
4. RENTER PROTECTIONS DURING FORBEARANCE PERIOD.―A multifamily borrower that receives a forbearance under this section may not, for the duration of the forbearance―
   1. evict or initiate the eviction of a tenant from a dwelling unit located in or on the applicable property solely for nonpayment of rent or other fees or charges;  or
   2. charge any late fees, penalties, or other charges to a tenant described in paragraph (1) for late payment of rent.
5. NOTICE.―A multifamily borrower that receives a forbearance under this section―
   1. may not require  a tenant to vacate a dwelling unit located in or on the applicable property before the date that is 30 days after the date on which the borrower provides the tenant with a notice to vacate; and
   2. may not issue a notice to vacate under paragraph (1) until after the expiration of the forbearance.
6. DEFINITIONS.―In this section:
   1. APPLICABLE PROPERTY.―The term “applicable property”, with respect to a Federally backed multifamily mortgage loan, means the residential multifamily property against which the mortgage loan is secured by a lien.
   2. FEDERALLY BACKED MULTIFAMILY MORTGAGE LOAN.―The term “Federally backed multifamily mortgage loan” includes any loan (other than  temporary financing such as a construction loan) that―
      1. is secured by a first or subordinate lien on residential multifamily real property designed principally for the occupancy of 5 or more families, including any such secured loan, the proceeds of which are used to prepay or pay off an existing loan secured by the same property; and
      2. is made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way, by any officer or agency of the Federal Government or under or in connection with a housing or urban development program administered by the Secretary of Housing and Urban Development or a housing or related program administered by any other such officer or agency, or is purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal Mortgage Association.
   3. MULTIFAMILY BORROWER.―the term “multifamily borrower” means a borrower of a residential mortgage loan that is secured by a lien against a property comprising 5 or more dwelling units.
   4. COVID–19 EMERGENCY.―The term “COVID–19 emergency” means the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on March 13, 2020 under the National Emergencies Act (50 U.S.C. 1601 et seq.).

Public Housing reissued their latest COVID-19 Q&A Document on March 31, 2020.  Highlights that may be of interest include:

1. Essential job descriptions
2. Procurement policies
3. Recertifications
4. HQS inspections
5. Treatment of tenant stimulus payments
6. VMS reporting deadlines
7. Single Audit submission
8. Signatures
9. Flat rent conversions
10. Visitor policies
11. Continuance of operations during shelter-in-place
12. Operating and Capital Funds
13. Uses of HCV admin fees
14. Income shortfalls due to nonpayment of rent

Single Family Housing reissued their latest COVID-19 Q&A Document on March 31, 2020.  Highlights that may be of interest include:

1. Annual Recertification deadline
2. Special loss mitigation programs due to Covid-19
3. Case binder submission with 10 days
4. Foreclosures and evictions
5. Foreclosure deadline extensions
6. Employment verification
7. Covid-19 Forbearance period (Mortgagee Letter 2020-06)
8. Forbearance for unemployment
9. Revised for financial hardship
10. Communication of periods for Loss Mitigation
11. Trial Payment Plans

Office of Residential Care Facilities (ORCF) reissued their latest COVID-19 Q&A Document on March 31, 2020.  Highlights that may be of interest include:

1. Quarantine procedures
2. Emergency funds availability (reserve for replacement usage)
3. Regulatory waivers for facilities with outbreaks
4. Financial statement due dates (audited and unaudited)
5. Visitors to facilities
6. Regulatory relief due to outbreaks
7. Mortgage relief (it is not clear if Section 4023 above relates to ORCF mortgages as this section indicates no relief)
8. Reserve for replacement usage

Rural Development reissued their latest COVID-19 Q&A Document on March 31, 2020.  Highlights that may be of interest include:

1. Reduction in income
2. Treatment of stimulus payments
3. Mortgage relief due to COVID-19
4. Reserve usage
5. Social distancing policies