Freddie Mac Extends Multifamily Forbearance Program
The extension will give apartment operators additional time to request a new or supplemental forbearance agreement.
Freddie Mac has extended the deadline for requesting a new or supplemental COVID-19 forbearance agreement for its multifamily loans. The new date is March 31, 2021. The program was originally set to terminate at the end of 2020.
Under the Forbearance Relief program, multifamily landlords whose properties are financed with a Freddie Mac Multifamily fully performing loan can defer their loan payments by showing hardship as a consequence of COVID-19 and by gaining lender approval.
The extension will give apartment operators additional time to request new or supplemental forbearance agreements, including renter protections such as a moratorium on evictions for non-payment of rent.
“We are still in the midst of the pandemic, and to continue to provide support for the multifamily market, we are providing additional time for borrowers to request a new or supplemental forbearance agreement,” said Debby Jenkins, head of Multifamily at Freddie Mac said in a statement. “Our forbearance program is just one way that Freddie Mac Multifamily has worked to support multifamily operators and renters throughout COVID-19, and we will continue doing what we can to provide for stability, liquidity and affordability.”
To enter into a new or supplemental forbearance arrangement with Freddie Mac, borrowers must notify renters that they may not be evicted or given notice of eviction for non-payment of rent during the forbearance period or be charged late fees, penalties or other charges related to non-payment of rent during the forbearance period or the repayment period.
While rental payments will continue to be due and will accrue, renters in properties with new or supplemental forbearance agreements must allow back rent to be paid over a period of time and not in a lump sum.
Additionally, Freddie Mac requires properties with new or supplemental forbearance agreements to provide residents with 30-days’ notice before any eviction taking place during the forbearance repayment period. Finally, renters do not need to show COVID-19 related hardship to be eligible for any of the protections.