A recent DSnews article highlights information from Freddie Mac regarding the impact of the end of eviction moratoriums, the role of rental assistance, and certain actions property owners can take as COVID-19 protections expire. Without eviction moratoriums, rent subsidies will be essential to keep renters in their homes and to help property owners stay current on their loans. Freddie Mac researchers believe that while there is enough funding available, it will be important that they are accessible. The deployment of these federal rental assistance funds will be a challenge during this transition in the market. Corey Aber, Senior Director, Multifamily Mission, Policy and Strategy, stated “ While the steady return to normal pre-pandemic routines brings a sense of optimism, the economic impact of COVID-19 will have a lingering effect, particularly on renters who owe back rent and were protected by eviction moratoriums”.
WHAT ELSE DID THE ARTICLE SAY?
The Freddie Mac article discusses renter protections and how they impact property owners. The CDC eviction moratorium stated that property owners could not evict renters if they provide documentation that they are making efforts to obtain government assistance. The eviction moratoriums prevented an eviction crisis from occurring during the pandemic. A concern moving forward is that without the eviction moratoriums, renters may be at risk for eviction if they are unable to pay their back rent. In addition, as discussed previously, if the funding for renter support is not accessible and distributed, then renters may be at risk to be evicted during this transitional period. The second author, Samantha Lerner concluded the article by stating “With any challenge—and set of solutions—of this magnitude, there are bound to be inefficiencies and missteps, but there are also bound to be valuable lessons and new innovations that can help not just the renters and property owners of today, but also those of tomorrow as we transition to a new post-pandemic normal”.
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Click here to read the full Freddie Mac article and learn more!
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