Coronavirus news

Rural-Related Coronavirus Media Coverage

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News reports on the pandemic often focus on big cities, but rural places are getting a share of the attention too. Check out the coverage here.

Check out all of HAC’s coronavirus resource pages here.

 THESE SOURCES HAVE ONGOING RURAL COVERAGE

MEDIA COVERAGE (please let us know what we’ve missed!)

WANT TO SUGGEST AN ADDITION FOR THIS PAGE? Please email Leslie Strauss at HAC.

Round-up of Recent Housing Announcements Related to Coronavirus

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This page summarizes a number of announcements from federal agencies on housing policies related to the coronavirus pandemic, most of which were issued in March 2021. It is current as of April 5, 2021. HAC has posted a table here that shows the deadlines for many federal agencies’ provisions.

If you have a correction or an addition, please contact Leslie Strauss on HAC’s staff.

REQUEST FOR COMMENTS
  • The Consumer Financial Protection Bureau has proposed changes that are intended to delay foreclosures on homeowners who have not been able to pay their mortgages for pandemic-related reasons. Comments are due May 10, 2021. (CFPB’s press release somewhat confusingly says comments are due “before May 11.”) Forbearance (permission to delay making mortgage payments) will end for almost 1.7 million homeowners in September and the following months, CFPB states, with many of them a year or more behind on their mortgage payments. The proposed rule changes would require lenders and servicers to wait until after December 31, 2021 before starting most foreclosures, to offer loan modifications to borrowers, and to take other steps. A separate bulletin for lenders advises them to prepare early for the wave of homeowners exiting forbearance.
DEADLINE EXTENSIONS
  • The Centers for Disease Control has extended the nationwide eviction moratorium through June 30, with some changes in wording. CDC also posted a new checklist version of the Eviction Protection Declaration for tenants to use. USDA RD announced that the moratorium applies to tenants in USDA-assisted properties. For more information, property owners and management agents can contact their RD servicing representative (on the linked page, click the Contact tab). Tenants can request information from HUD-certified housing counseling agencies.
  • The application deadline for the Paycheck Protection Program for small businesses (including nonprofits) was extended to May 31 by the PPP Extension Act of 2021.
  • HUD has revised and extended provisions for the Section 184 Native American and Section 184A Native Hawaiian mortgage guarantee programs. Moratoriums on foreclosure and eviction of borrowers are extended through June 30, 2021. Other date changes and expansions apply to loan processing flexibilities, borrower requests for forbearance, borrower eligibility for loss mitigation, and more.
  • Some flexibilities related to new single-family mortgage loans, put in place by Fannie Mae and Freddie Mac earlier in the pandemic, have been extended until April 30. These include alternative appraisals, alternative methods for documenting income and verifying employment before loan closing and expanded use of power of attorney.
  • Forbearance options for owners of rental property whose mortgages are held by Fannie Mae or Freddie Mac are extended through June 30. Landlords who are experiencing financial hardship because of the pandemic can request mortgage forbearance and must agree to certain tenant protections. For more information, contact a mortgage lender or servicer.
  • The Federal Housing Administration has extended some temporary policies through June 30, 2021. The policies provide flexibility in using exterior-only appraisals, re-verifying employment, verifying self-employment income, verifying rental income and use of escrow accounts for some borrowers in forbearance.
EXPIRATION
  • One of the Federal Housing Administration’s temporary policies expired on March 31, 2021. Mortgagee Letter 2020-16, issued in June 2020 and then extended, allowed FHA-approved lenders to endorse mortgages that had received forbearance because of the pandemic. FHA explained that fewer than 3 percent of FHA-approved mortgagees had requested endorsement of such mortgages, so it expected little impact from the provision’s expiration. Homeowners with FHA-insured mortgages can still request forbearance; currently that policy is in place through June 30, 2021.
OTHER TENANT-RELATED ANNOUNCEMENTS
  • The Federal Trade Commission and Consumer Financial Protection Bureau announced in a joint statement that “both agencies will be monitoring and investigating eviction practices, particularly by major multistate landlords, eviction management services, and private equity firms, to ensure that they are complying with the law.” Evictions that violate the moratorium, as well as other unlawful debt collection practices, can be reported to the CFPB at www.consumerfinance.gov/complaint/ or 855-411-2372.
  • USDA reminded owners and managers of USDA-financed multifamily properties that the CARES Act instituted a required 30-day notice before evicting a tenant, and that provision has no expiration date. The agency also noted that a lease cannot be terminated or not renewed as an alternative to eviction. USDA has also mailed letters to all Section 514 and 515 tenants about the Emergency Rental Assistance Program support that is being distributed through states and localities. For more information, contact an RD state office.
  • USDA’s multifamily housing office reminded stakeholders that tenants displaced by disasters are eligible for priority access to available units at RD rental properties. Their status may be documented by either an RD-issued Letter of Priority Engagement (for tenants from RD properties) or a registration letter issued by FEMA (for tenants from any properties). For more information, or to request a temporary waiver, property owners and management agents should contact their RD servicing representative (on the linked page, click the Contact tab). Tenants impacted by disasters can locate RD properties here and register with FEMA here or at 800-621-3362.

HAC and NEA team up to celebrate rural stories – in photos

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With support from the National Endowment for the Arts, HAC is launching “There is More Work to Be Done,” a virtual exhibition celebrating the work of acclaimed photographer George “Elfie” Ballis (1925-2010), a long-time friend of HAC and rural housing, along with photos and stories from contemporary photographers who worked with our local partners in California, Kentucky, and Mississippi to capture our collective progress while exposing the work that must continue. As HAC approaches 50 years, these photos are a perfect opportunity to both reflect and look forward.

There is More Work to be Done

Our thanks to the partner organizations and photographers who shared their communities and talents with us.

Coronavirus news

CDC Eviction Moratorium Extended through June

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On March 29, 2021 the Centers for Disease Control extended its moratorium on evictions for non-payment of rent. Tenants will now be protected through June 30 so long as they meet the moratorium’s requirements, including providing their landlord with a declaration form about their inability to pay rent.

The moratorium was first imposed in September 2020 and has faced several expiration dates but has been renewed repeatedly. The most recent deadline was March 31.

The ban’s applicability in USDA Rural Development rental housing was confirmed in a March 29 press release.

Federal consumer protection agencies now seem to be willing to take a more active role in enforcing the moratorium than they have previously. A statement from the Federal Trade Commission and Consumer Financial Protection Bureau, issued on March 29, asserts that “both agencies will be monitoring and investigating eviction practices, particularly by major multistate landlords, eviction management services, and private equity firms, to ensure that they are complying with the law. Evicting tenants in violation of the CDC, state, or local moratoria, or evicting or threatening to evict them without apprising them of their legal rights under such moratoria, may violate prohibitions against deceptive and unfair practices.”

Low-income tenants who cannot afford their rent because of the coronavirus epidemic’s impacts may wish to seek help from a legal aid office.

Coronavirus news

HAC Celebrates Signing of American Rescue Plan Act

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March 11, 2021 – Today is a historic day as President Biden signed a $1.9 trillion coronavirus relief and economic stimulus plan into law. The Housing Assistance Council is proud that Congress included significant and desperately needed housing aid—including rural housing assistance—in this new plan.

With more than 4 million reported cases and 78,000 deaths outside metropolitan areas, the coronavirus pandemic has raged in rural America. It has driven an economic downturn, as countless rural families have lost jobs and struggled to make rent and mortgage payments. The plan’s $100 million in rural rental assistance will help keep a roof over their heads. The plan also includes $39 million in rural mortgage relief, helping rural families prevent foreclosure.

Housing is vital to public health and economic opportunity and is a cornerstone of community and family. We are glad that the American Rescue Plan recognizes the importance of housing to our nation’s health and economic recovery.

Summary of Relevant Provisions

The American Rescue Plan Act includes two provisions specifically for USDA rural housing programs. The Section 521 Rental Assistance program will get $100 million for tenants in USDA-financed properties who are not already receiving RA and have lost income because of the pandemic. Protections for homeowners will be provided through $39 million for new Section 502 direct mortgage loans and Section 504 repair loans. Because of restrictions imposed by the budget reconciliation process that was used to pass the bill, it could not include funds to refinance loans for current USDA borrowers who are struggling, but USDA will be able to assist them with previously appropriated funds.

The Act also does not include an extension of the eviction moratorium that is currently scheduled to expire on March 31. It, too, had to be excluded under budget reconciliation. The Centers for Disease Control, which imposed the moratorium, can extend it.

The largest portion of housing aid in the bill is $21.55 billion for Treasury’s Emergency Rental Assistance program, along with $5 billion for emergency HUD vouchers, $750 million for HUD’s Native American, Native Hawaiian and Indian CDBG programs, $5 billion for homelessness assistance, $9.96 billion for homeowner assistance, and $100 million for housing counseling. Utility assistance is funded at $4.5 billion and $500 million is provided for water assistance.

The package expands the Earned Income Tax Credit and Child Tax Credit, and also extends expanded unemployment benefits through Labor Day .

More than $5 billion will pay off debts and provide other assistance to socially disadvantaged farmers and ranchers.

Our Work

A celebration of Black history and Black families

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February is Black History Month. At HAC, we observe this important time by reflecting on the history of Black Americans and the contributions they’ve made to our communities for more than 400 years . Black history matters. Tragically, just as America has silenced and ignored Black voices, we have omitted Black history.

Even today, we often leave Black Americans out of our conception of rural America. Racial minorities represent 23% of rural America, yet they make up almost 60% of the population of rural counties with persistent poverty. These are the communities HAC serves, and we stand steadfast in our commitment to them. Every day, our work helps the most underserved rural communities meet their housing needs.

The Association for the Study of African American Life and History, the founders of Black History Month, have named this February’s theme to be The Black Family: Representation, Identity, and Diversity. While community developers build houses, it’s families that make them into homes. Our work has supported Black families build community and access the safe, affordable housing they deserve for decades.

We’re excited to take this month to celebrate Black families and their contributions to rural America. This month, we’ll be highlighting our work with Black communities and sharing more about our ongoing commitment to them. For 50 years, HAC has helped build homes in the most rural and poorest places in America. Our work is driven by a commitment to making the more just and equitable world we dream of. Still, there is much work to be done to realize that dream of true equity and justice. We hope you’ll join us in that work.

Our Work

HAC Awarded Nearly $1.3 Million in SHOP Funding

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Last week, the US Department of Housing and Urban Development announced it has awarded the Housing Assistance Council almost $1.3 million under its Self-Help Homeownership Opportunity Program (SHOP). Under the self-help model, homebuyers contribute hundreds of hours of labor as “sweat equity” instead of a down payment, making their new home more affordable.

HAC will lend this $1.3 million to organizations around the country building affordable self-help homes in rural communities. In fact, our lending will help finance the land purchase and infrastructure improvements necessary to build at least 69 self-help homes for low-income families.

If the borrowers meet their production goals, up to 90% of the loan can be forgiven.  This forgiveness frees up more funding for the organization to make the homes even more affordable, establish a revolving loan fund, or fund future self-help housing development. We are thankful for the opportunity to continue investing in the organizations making more affordable housing for rural America.

USDA Issues Reminder on Tenant Evictions

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December 30, 2020 – The newest federal coronavirus relief bill includes a provision extending for one month the nationwide moratorium on eviction of tenants for nonpayment of rent. The moratorium, issued by the Centers for Disease Control in September 2020, protects tenants who provide certifications to their landlords, including tenants in assisted housing. It now applies through January 31, 2021 rather than the original termination date of December 31, 2020.

USDA has issued a reminder about the moratorium’s applicability to tenants in USDA-financed rental housing. The text of the reminder is incorporated in a December 29 update of USDA’s summary of coronavirus relief actions and is also reproduced below.

For more information, contact a USDA Rural Development Service Center.

 

Extention of CDC Temporary Halt in Residential Evictions

The Consolidated Appropriations Act, 2021 enacted on Dec. 27, 2020, contains provisions extending new relief to those affected by the ongoing COVID-19 pandemic.

Section 502 of the Act contains an extension of the Temporary Halt in Residential Evictions originally issued by the Centers for Disease Control and Prevention on September 4, 2020. Residential evictions for nonpayment of rent are now halted through January 31, 2021.

As a reminder, this halt applies to all tenants in Rural Development MFH properties who certify that they meet the CDC criteria, such as:

  • All adults in the household have attempted to obtain any available government assistance for rent
  • The household meets income limits of $99,000 per individual or $198,000 per couple
  • The household is unable to pay full rent due to a loss in household income or extraordinary medical expenses
  • Timely partial payments have been attempted
  • Eviction would likely make the household homeless or force them into an unsafe shared living arrangement

The CDC guidance contains a sample certification form for tenants. It is our understanding that all adult members of the household must certify eligibility.

Early Information on Paycheck Protection Program Round 2

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Following is a summary of what we know as of December 29, 2020 regarding the second round of the Paycheck Protection Program (PPP2) approved in the coronavirus relief bill signed into law on December 27, 2020. The Small Business Administration (SBA) and Treasury Department will likely provide additional information and guidance in the new year.

PPP2 Funding

  • The maximum loan amount for PPP2 is $2 million (down from $10 million in the CARES Act).
  • The coronavirus relief bill allocates just over $284 billion for PPP2 loans.

PPP2 Loan Categories

  • First time PPP loans for businesses who qualified under the CARES Act but did not get a loan
  • Second draw PPP loans for businesses that obtained a PPP loan but need additional funding
  • Additional funding for businesses that returned their first PPP loan or did not get the full amount for which they qualified

PPP2 Loan Eligibility

Eligible small businesses may include:

  • Small businesses, nonprofit organizations, veterans organizations, Tribal business concerns, and small agricultural cooperatives that meet the SBA size standards
  • Sole proprietors, self employed individuals or independent contractors
  • New: Certain small news organizations, destination marketing organizations, housing cooperatives, and 501(c)(6) nonprofits may now also be eligible

Previous PPP recipients may apply for another loan of up to $2 million, if they:

  • Have 300 or fewer employees
  • Have used or will use the full amount of their first PPP loan
  • Can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019 (note: there are instructions for business operating by 2/15/2020 that did not exist in early 2019)
  • Returned all or a part of a previous PPP loan

PPP2 will permit first-time borrowers that are:

  • Nonprofit organizations, including churches
  • Businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans
  • Sole proprietors, independent contractors, and eligible self-employed individuals.

Calculating a 25% Reduction in Revenue

Compare gross receipts (before expenses are subtracted) for any quarter in 2020 to the same quarter in 2019 to determine if revenues decreased by at least 25% (note: there are instructions for business operating by 2/15/2020 that did not exist in early 2019).

For Small PPP2 Loans (of up to $150,000)

  • For loans of up to $150,000 the organization can simply certify the revenue loss in the application. Before the organization can apply for forgiveness, however, it will have to produce documentation of the revenue loss. Please look for additional guidance from SBA in the weeks to come.
  • The statute creates simplified forgiveness for loans of $150,000 or less. The SBA Administrator has 24 days after the law’s enactment on December 27 to release a new one-page forgiveness application for loans of $150,000 or less — which includes loans under both the first round and the new PPP2.

PPP2 Loans and Payroll Costs

  • A business may qualify for up to 2.5 times average monthly payroll costs.
  • Borrowers will need to spend at least 60% of loan proceeds funding on qualified payroll expenses.
  • Payroll is defined essentially the same way as in the CARES Act.
  • An individual employee cannot earn in excess of $100,000 annually, as prorated for the covered period.
  • Borrowers may spend up to 40% on other qualified non-payroll expenses, during the covered period. The list of eligible non-payroll expenses includes:
    • Rent
    • Mortgage interest
    • Utilities
    • Covered operations expenditure
    • Covered property damage cost
    • Covered supplier cost
    • Covered worker protection expenditure

PPP2 Loan Forgiveness

  • It appears that PPP2 loans may be entirely forgiven if spent for the proper purposes during the permitted time period.
  • There are currently three PPP loan forgiveness applications (Form 3508, Form 3508EZ, and Form 3508S)
  • SBA is likely to revise or provide new loan forgiveness applications for PPP2.

Other Information

Like the original PPP under the CARES Act, there is no credit check required, there is no personal guarantee, and normal SBA collateral requirements are waived.

The President signed the legislation on December 27, 2020 and the SBA Administrator has ten days to issue regulations. At this time, we expect these loans to be available in early January.

Other resources approved in the bill include:

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50 Years for Rural America

Over 50 years HAC has worked in every U.S. state and the territories. Learn more about what our work means for rural communities.

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