White House Orders HUD to Halt Foreclosures and Evictions
Earlier this week, the U.S. Department of Housing and Urban Development (HUD) confirmed that Secretary Ben Carson has authorized the Federal Housing Administration (FHA) to implement an immediate foreclosure and eviction moratorium for single-family homeowners with FHA-insured mortgages for the next 60 days. This announcement falls in line with the Federal Housing Finance Agency’s (FHFA) directive to Fannie Mae and Freddie Mac (the Enterprises) to suspend foreclosures and evictions for at least 60 days for homeowners with an Enterprise-backed single-family mortgage.
HUD confirmed that the intent of the notice was to ensure homeowners with FHA-insured mortgages will not be foreclosed upon or evicted. It is not intended to apply to renters.
In light of these extraordinary circumstances, HUD encourages public housing authorities (PHAs) and rental housing providers who serve rent assisted (Housing Choice Voucher (including Project-Based Voucher (PBV)), public housing and Indian Housing Block Grant (IHBG)) residents to prevent the displacement of families through eviction. Some PHAs have gone so far as to issue eviction moratoriums for housing that falls under their jurisdiction.
Nationally, at least 50 jurisdictions announced eviction moratoriums in light of the spread of COVID-19, with more considering legislation or mandate by judicial action or law enforcement. Keep in mind that a state of emergency and/or “shelter in place” order could also impact on-site staffing capabilities and property management operations. NAA has developed a research report to help you navigate this patchwork of mandates, including information on eviction, rent increase restrictions, late fees and shelter-in-place orders. For additional information, please check out the latest installment of the NAA Daily Micro-Webinar Series: Legislative and Regulatory Update.
Visit NAA’s Resources and Guidance for COVID-19 for additional resources.