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A Message From the Affordable Homeownership Team
As we all work to navigate the COVID-19 crisis, we want to assure you that we will continue to support the members of our Network. Although organizations are responding in different ways, we want to provide you with as many resources as possible. Please explore the information throughout this newsletter to see others' response strategies, 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 Disruptions
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. Within this fluid situation, 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 a loan is an FHA-insured mortgage, explore this resource.
Should the severity of this financial crisis progress, consideration of more politically difficult solutions could be required by lenders, service providers, secondary market actors, and regulators. Lenders are open to considering various options. Last week, 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 have either begun contemplating, or mandating, a halt on 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 for an undecided 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, which will also be posted here upon release. 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.
2020 I'M HOME Conference Update
Out of concern for all members of our Network, the 2020 I'M HOME Conference will be postponed until the Spring of 2021. While we are saddened that we will not be able to host this conference in the Fall of 2020, we want to ensure that everyone has the chance to take care of themselves and their families. Please stay tuned for more details to come and we look forward to seeing you all in the Spring!
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. Review our comment letter and sign on through the Prosperity Now Advocacy Center.
In The News
Family Promise of Colorado Springs and the New Promise Family Shelter
Family Promise of Colorado Springs opens their first stand-alone, family dedicated shelter. As Colorado's first low-barrier family shelter, this shelter ensures that families are not separated based on a variety of different factors. Read more here.
Special Resources Regarding COVID-19
Housing and COVID-19: Stopping Home Loss During a Pandemic
Hosted by New America and the National Low Income Housing Coalition, this webinar will take place on Thursday, March 26 from 12:00 PM - 1:00 PM EST. Register here to hear more about the strategies at the national, state, and local level to minimize the housing fallout of COVID-19 and the steps that renters and homeowners can take to protect yourselves during this crisis.
What Non-Profits Need to Know About COVID-19
Navigating the great uncertainty and changes that are occurring both personally and professional 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.
National Community Reinvestment Coalition
With the current state of things changing rapidly, many organizations and governments have responded with their own resources and services to help with challenges that have come about. Check out the National Community Reinvestment Coalition's list of COVID-19 resources here.
