An unprecedented $2 trillion federal rescue package to bolster the economy against the impact of the coronavirus epidemic awaits final approval by Congress, possibly as early as today.
Highlights of the agreement reached early Wednesday morning by congressional leaders includes multiple provisions that could help shore up the multifamily industry by providing support for renters and for businesses. Individuals and families would be eligible for direct payments as part of a $250 billion program.
Payments would be $1,200 per person for those earning as much as $75,000. Benefits would then gradually decrease until incomes reach a maximum of $99,000, the New York Times reported. Families with children would receive an additional $500 per child.
According to Bloomberg, Senate Minority Leader Chuck Schumer said that checks would be cut on April 6.
The legislation also includes elements that would help renters suddenly thrown out of work. Unemployment insurance would be extended four months and boosted $600 per month, Bloomberg reported.
The package also includes $350 billion in aid for smaller businesses. To help those smaller companies maintain business continuity, the Small Business Administration will administer a loan program. Big businesses are the subject of another $500 billion in relief, including $50 billion is designated for the hard-hit airline industry, according to the CNN report.
In conjunction with FHFA, Fannie Mae and Freddie Mac this week announced their own relief plan. They are allowing lenders to grant 90 days’ mortgage forbearance to multifamily borrowers that agree not to evict residents impacted by COVID-19. In a statement, National Multifamily Housing Council president Doug Bibby called the GSEs’ move “a necessary step” and noted that many multifamily owners are themselves small businesses.
Stay tuned to MHN for updates on the stimulus package and continuing coverage of the coronavirus epidemic’s impact on the multifamily industry.