The Executive Order, issued on August 8th, calls on the secretary of Treasury, Steven Mnuchin, and the secretary of Housing and Urban Development, Ben Carson to identify “any and all available federal funds” to provide temporary rental assistance to those who are facing financial turmoil due to COVID-19. In other words, the executive order calls on department leaders to ASSESS THE NEED AND AVAILABILITY of federal funding, NOT TO PROVIDE federal funding or EXTEND the Eviction Moratorium.
When the moratorium ended, owners/agents were to give a 30-day notice to residents before they could evict. That 30-day notice would’ve ended August 23rd.
As an alternative to evicting, HUD encourages owners/agents to work with their residents by putting in place repayment agreements. HUD offers COVID-19 Tenant Guidance: Rent Repayment Plans to help owners work with residents who are behind. This idea can help properties keep vacancies down.
If the owners/agents or residents choose NOT to participate in a repayment agreement, owners/agents will need to make sure that they follow the “Termination of Tenancy” procedures. This can be found in Chapter 8, Paragraph 8-13 B. of the HUD 4350.3 Handbook.
We have received several calls this month about property management issuing the 30-day notice but NOT adhering to the “Termination of Tenancy” procedures in the Handbook. REMEMBER, the moratorium eliminated late fees. Therefore, you CANNOT add late fees into the amount owed by the resident, only rental payments.
$500,000 in CARES Act Funding to Fair Housing Organizations
On Monday, September 21st, HUD announced it's giving additional funding to 15 Fair Housing Assistance Program (FHAP) agencies. The total amount awarded is over $500,000 to Fair Housing agencies. The agencies span across 12 states. This funding is to support activities related to COVID-19.
REAC is back! Vickie discusses everything you need to know about the resuming of REAC physical inspections, including all the protocols and strategies HUD and REAC are using to avoid the spread of COVID-19.