Key Highlights

  • 31 housing organizations and industry trade associations sign call to action for US Congress to protect renters and property owners
  • Letter to congressional leaders, HUD, Treasury Dept. and National Economic Council to reignite talks concerning rental assistance and stimulus regulations that “keeps people in their homes”

The following current conditions in our country spell disaster to renters and property owners alike: the COVID-19 pandemic, unemployment figures not seen since the Great Depression, the COVID economy in which 61% of small businesses have permanently closed and the GDP dropping -12% after a more than -32% skydive in Q2 followed by an uptick of some +20% in July and expired CARE Act relief measures and eviction moratoriums.

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Though President Trump signed executive orders to mitigate some of the expired relief measures, these orders do not go far enough and, in some cases, are not mandated but merely suggested. Though the US House of Representatives passed the Heroes Act more than three months ago that included $100B for rental assistance renter households and property owners negatively impacted by the pandemic, the US Senate has yet to take up this legislation. The US Senate has not yet offered its own relief aid package.

Already, according to the US Census Bureau, some 21% of renter households are behind on their rent payment. More renters and the landlords/property owners will become more severely impacted and the eviction numbers will skyrocket from the roughly 3-4M “regular” evictions to, in some estimates, 30-40M evictions if elected officials and government agencies do not come together to offer federal rental assistance.

On August 20, 31 housing organizations and industry trade association signed and sent a letter to congressional leaders, the Department of Housing and Urban Development, Department of Treasury, and the National Economic Council urging them all to come together as soon as possible to forge a compromise on stimulus regulation and rental assistance that “keeps people in their homes.”

Currently, some $25B in back rent is owed. Without rental assistance, this coalition estimates some $70B in back rent could be owed by the end of 2020. A statement delivered to all of these entities was signed by the Mortgage Bankers Association, National Housing Conference, National Association of REALTORS® and the National Association of Home Builders included this warning: “…Failure to act will put tens of millions of renters at risk of being evicted, undermine the stability of our rental housing system, and needlessly prolong our nation’s ability to fully recover from the economic damage that has been wrought by this pandemic.”

Coalition members underscored their unity of purpose by saying, “…we are united behind the need for assistance that helps those in need and does so in the quickest, most effective manner possible.”

In addition to the industry trade associations mentioned above, here are just some members of this coalition of 31 housing organizations: CCIM Institute, Council of Large Public Housing Authorities, Habitat for Humanity International, Institute of Real Estate Management, National Apartment Association, National Association of Real Estate Brokers, National Multifamily Housing Council and Up for Growth Action.

David M. Dworkin, president and CEO of the National Housing Coalition, said, “There should be no higher priority than avoiding millions of evictions throughout the county. Without emergency rental assistance funding, we will face a catastrophic crisis.”

 

Thanks to HousingWire.

Also read: In’s and Out’s of Finding Distressed Properties for Investment, Millions of Evictions Are Sharper Threat as Government Support Expires, Podcast: Are You FINALLY Ready To Be A Listing Agent? | Tim and Julie Harris