MAAHP COVID-19 and CARES Act Update

MAAHP COVID-19 and CARES Act Update
 
Last Friday, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act or the CARES Act. This relief bill has many provisions relevant to MAAHP members, specifically relating to assistance for small businesses and nonprofits, mortgage forbearance for multifamily borrowers, and a 120-day eviction moratorium for affordable housing properties. The Small Business Administration programs are especially important for members with less than 500 employees that need help paying employees and keeping a roof over your head.
 
MAAHP held a conference call last Friday to discuss the CARES Act and other COVID-19 related information. Mississippi Home Corporation Executive Director Scott Spivey joined the call to give updates regarding MHC and the state’s response. Click here to view the presentation from Friday’s call.
 
For more information on the CARES Act, please see below:

• SBA Paycheck Protection Program

  • Designed to help small businesses and nonprofits keep employees on payroll

  • Forgivable portion will be based on number of employees and amount of payroll compared to pre-loan period; intent is entire amount will be forgiven if number of employees and amount of payroll is the same

  • Apply through your local lender or SBA-approved lenders

  • Applications begin April 3rd

  • Click on these links for more information

    • Program Overview

    • Information for Borrowers

    • Borrower Application

• SBA Economic Injury Disaster Loan

  • Small businesses can apply for an advance of up to $10,000

  • Advance funds are quick and free: Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid

  • Apply through SBA

  • Capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

• SBA Coronavirus Resources Page: The SBA has other resources that may be useful to MAAHP members.

• Mortgage Loan Forbearance for Multifamily Borrowers: Multifamily borrowers with a federally-backed multifamily mortgage loan may be eligible for up to 90 days of forbearance on their mortgage loan if they are experiencing financial hardship. Borrowers receiving forbearance may not evict or charge late fees to tenants for the duration of the forbearance period. 

• 120-Day Moratorium on Evictions from Affordable Housing: The CARES Act provides a 120-day moratorium on eviction filings for properties assisted in any way by HUD, Fannie Mae, Freddie Mac, the rural housing voucher program, or covered programs under the Violence Against Women Act. This includes Low Income Housing Tax Credit properties.

• CARES Act Overview from Enterprise Community Partners, including a breakdown of $12.5B in housing funding.

 
For more resources, consult MAAHP’s coronavirus resources webpage, www.maahp.ms/covid-19.
 
MAAHP Conference Call
MAAHP is hosting another Zoom conference call with MHC Executive Director Scott Spivey on Thursday, April 9th from 2pm-3pm. Please click here to register for the call.
 
MHC Guidance
MHC will be issuing guidance to LIHTC properties regarding the 120-day eviction moratorium, and will also be collecting information from providers regarding tenants not able to pay rent and other COVID-19 issues. Please be on the lookout for that communication and respond to MHC with information related to tenants inability to pay rent. That data will be critical in coming up with solutions, including the need and scope of potential rental assistance.
 
Members can also reach out to MAAHP concerning any COVID-19 related issues by using this form.