No images? Click here
A Message From the Affordable Homeownership Team
As we all work to navigate the COVID-19 pandemic, we want to assure you that we will continue to work to best support the members of our Network. While we know that organizations may be responding in different ways, we want to provide you with as many resources as possible. Please click on the different links throughout this newsletter to see how different entities are responding, and the resources that might be available to you or the community that you serve.
We wish you health and safety.
Resources for Renters and Mortgage Borrowers Facing COVID-19-Related Income Distributions
For many of our partners and the people with whom they work, a major concern in the COVID-19 crisis is the ongoing ability of families to make their mortgage and rental payments. This is a fluid situation, but there are resources to assist families. CityLab has a good article on this topic from March 17. However, note that changes are happening every day.
For homeowners facing challenges making mortgage payments, it is imperative that they reach out to their loan providers as soon as possible. One option is forbearance, which would put off or temporarily reduce mortgage payments and extend the repayment periods. If you are a client or you think a loan is owned by Fannie Mae or Freddie Mac - which is probable - you can use this link to confirm. If the loan is an FHA-insured mortgage, explore this resource.
Principal reduction is a better tool, but less likely to get wide support from some policymakers. Lenders are open to considering various options. Wednesday, the Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to suspend foreclosures and evictions from mortgages for at least 60 days as a result of the COVID-19 crisis, while HUD established a 60 day moratorium on foreclosures and evictions from FHA-insured single-family rentals.
The federal government has multiple resources to get assistance, including a joint website run by Treasury, HUD and the Federal Housing Finance Agency. The Consumer Financial Protection Bureau also has a resource to assist in finding a housing counselor.
For renters, many states and localities have already, or are considering, halting evictions in the interim. The National Low-Income Housing Coalition is updating that list on its website. Due to state and local law, some jurisdictions can act immediately either through executive (mayoral or gubernatorial) action or through a decision from a judiciary. Other localities need to pass legislation. Renters should reach out to their property manager and local housing officials as soon as they think they may miss a payment.
Finally, there is a strong likelihood that Congress and the Administration will authorize a direct cash payment, in some amount, to all or most households in response to the economic fallout from the COVID-19 crisis. This will help families facing housing uncertainties, as well.
The important takeaway is to keep an eye on credible news sources and federal, state and local government websites.
Regulatory Updates
As most readers know, HUD and other federal agencies have been very active producing controversial regulatory proposals on issues and programs that directly impact our work. On March 16, Prosperity Now submitted its comments to HUD's very flawed proposed changes to the Affirmatively Furthering Fair Housing rule.
No later than March 31, we will submit our comments to HUD's proposed updates to the Manufactured Home Construction and Safety Standards. Please check your inbox soon for an opportunity to sign onto or borrow from our letter. These changes are not as problematic as feared, but are technical and we need to continue to review them.
Finally, comments on the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation's (FDIC) seriously troubled revisions of the Community Reinvestment Act regulations are due on April 8. The new date reflects a 30-day extension the regulators adopted after relentless criticism from advocates and Members of Congress. We will have a draft letter available by the end of March for your signature or use.
In light of the COVID-19 pandemic and the feared economic impacts, especially on families' abilities to pay their rents and mortgages, Sen. Sherrod Brown (D-OH), the Ranking Member on the Senate Banking Committee, has written HUD, the OCC, the FDIC and other agencies asking they halt non-health related rulemaking on proposed regulations with comments due after March 1, 2020, which would include the three discussed here. We agree this makes sense, and hope the agencies pause or at least extend their comment periods as many housing providers, service organizations and advocates are focusing on the immediate COVID-19 crisis.
Kicking Off HomeReserve: A Prosperity Now Mortgage-Match Savings Initiative
Last month, Prosperity Now kicked off HomeReserve: A Prosperity Now Mortgage-Match Initiative in Washington, DC and Detroit, MI with housing practitioners, government officials, local banks and residents. Through the implementation of HomeReserve, participants can increase their savings through incentivized and repetitive savings habits after they purchase their homes. This will allow participants to maintain homeownership, and develop the sustainable and long term habits that will allow them to better prepare for the future. As we navigate through these uncertain times, we reflect on the importance of programs like these and aiding families in building savings. Read more about the HomeReserve Kickoff here.
Policy
30 Day Extension on Proposed Changes for CRA
FDIC and OCC Announced 30-day Extension of Comment Period for Proposed Changes to Community Reinvestment Act Rules. Prosperity Now will be sharing our comment letter to the Network shortly.
In The News
Bipartisan Group of Senators Asks for Funding as Native American Tribes Face Global COVID-19 Crisis
As tribal leaders have started to approve declarations of disaster, a bipartisan group of 27 senators requested emergency funding for tribal leaders and urban Indian health departments to ensure that they do not get left behind in COVID-19 response measures and that are able to probably combat the unique challenges that they face. Read more here.
How COVID-19 Is Impacting Rural Communities
Across the globe communities everywhere are managing the transition as we re-work our lifestyles to fit in with the "new norm." However, these transitions have been found to have a different impact on rural communities, as compared to more urban counterparts. From a lack of high speed internet to disparities in access to information and strains on medical facilities, these challenges have become more prevalent as the COVID-19 crisis spreads. Read more here.
Special Resources Regarding COVID-19
Housing/Homelessness
Hosted by the National Low Income Housing Coalition and the Disaster Recovery Housing Coalition, this national call had advocates from across the country presenting information how federal, state, and local governments are responding to COVID-19 and the impact this is having on both homeless populations and low-income households. Download the presentation here and watch the full recording here.
General Housing
Hosted by the National Housing Conference, this webinar brought together experts in the epidemiology and public health fields to discuss the COVID-19 crisis, and precautions and contingency planning for property managers. Click here to see the recording of the webinar and presentation slides.
What Non-Profits Need to Know About COVID-19
Navigating the great uncertainty and changes that are occurring both personally and professionally in response to COVID-19 can be difficult and stressful. Check out these resources to help prepare for the crisis both in your personal life, and your professional life as you work to continue to service those in need.
