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Two national organizations that represent apartment landlords are asking lawmakers for a new stimulus package aimed directly at households that are struggling to pay the rent because of the economic effects of the COVID-19 epidemic.
The National Multifamily Housing Council and National Apartment Association asked congressional leaders to create an emergency rental assistance program, and to expand the SBA Paycheck Protection Program to include multifamily and student housing firms.
The industry groups cited Amherst Holding research that 25 percent of U.S. renter households may need financial assistance because of the public health emergency, requiring up to $12 billion a month in government support.
“A record 10 million workers applied for unemployment benefits in the last two weeks. Given that number, the apartment industry is expecting a significant number of residents will be affected by furloughs or job loss, which could inhibit their ability to pay their rent – even with the assistance provided by the CARES Act,” the groups’ presidents wrote in a letter Tuesday to congressional leadership.
On-time rent payments declined 12 percent in April to 69 percent, NMHC said, citing a survey encompassing 13.4 million units nationwide.
Separately, Equity Residential said Wednesday that it has collected approximately 93 percent of its April rents. The Chicago-based REIT owns more than 79,000 apartment units nationwide, including approximately 6,300 in Greater Boston. Equity Residential last month said it would offer renewals with no rent increases for 90 days.
The national landlord groups also asked Congress to expand a 90-day mortgage forbearance period enacted under the CARES Act to include other expenses including property taxes, insurance payments and utilities.
The moratorium only applies to federally-backed mortgages, but NMHC and NAA said the loan categories should be expanded to those issued by all federally regulated financial institutions including private banks, life insurers and collateralized mortgage-backed securities. They also asked Congress to align the forbearance timelines with local, state and federal moratoriums on evictions.
The NMHC proposal is similar to one being floated by state landlord advocacy group MassLandlords, which is petitioning Beacon Hill to create surety bonds that would guarantee landlords would receive rent payments during the crisis. Under the proposal, the state would step in if a tenant is unable to pay rent due to the crisis.
