Freddie and Fannie Extend Multifamily Forbearance Again

The Federal Housing Finance Agency has announced that Freddie Mac and Fannie Mae will extend multifamily forbearance for COVID-19. Qualifying multifamily property owners will be eligible for forbearance through June 30, 2021. The program was scheduled to expire on May 31, 2021.

The extended forbearance policy will include the same tenant protections as required previously: Multifamily owners must inform tenants in writing about tenant protections available during the property owner’s forbearance and repayment period, and they must agree not to evict tenants due to nonpayment of rent while the property is in forbearance. In addition, once the forbearance period expires, multifamily owners must give tenants at least a 30-day notice to vacate; cannot charge late fees or penalties for nonpayment of rent; and must allow flexibility in the repayment of back rent, which will not necessarily be in a lump sum.