Thursday, May 14

NYSAFAH Spring Virtual Symposium

Deborah VanAmerongen

Nixon Peabody212-940-3054

dvanamerongen@nixonpeabody.com

David Gasson

Boston Capital617-624-8896

DGasson@bostoncapital.com

Robert Moss

CohnReznick617-648-1400

Bob.moss@cohnreznick.com

Emily Cadik

Affordable Housing Tax Credit Coalition832-515-9975

emily.cadik@taxcreditcoalition.org

Stimulus Funding for Rental Assistance

Tenant-Based Rental Assistance

$1.25 billion

These funds will preserve Section 8 voucher

rental assistance for seniors, the disabled,

and low-income working families who will

experience loss of income from the

coronavirus.

Project-Based Rental Assistance

$1 billion

This additional funding will make up for

reduced tenant payments as a result of

coronavirus. Preserving this critical housing

assistance will prevent low-income families

and individuals from being at risk of

homelessness.

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For more information on this topic, please see Nixon Peabody’s alert:

Housing related provisions in “Phase 3” coronavirus stimulus

— Up to three 30-day requests, 90-day total

— A federally backed multifamily mortgage loan (FannieMae; Freddie Mac; or FHA-insured,

guaranteed, supplemented, or assisted in any way, by any officer or agency of the federal

government, HUD, or ”related program administered by any other such officer”)

Mortgage must have been current as of February 1, 2020

— Oral or written request — HUD Multifamily can use MBA Forbearance Agreement

— Owner must be experiencing a financial hardship during the COVID–19 emergency

— Authority from March 27, 2020, and sooner; end of emergency as declared by the president; or

December 31, 2020

— Eviction moratorium provision tied to forbearance (forbearance period plus 30 days) is similar,

but doesn’t match up exactly with the eviction protections in the law

Federal Mortgage Forbearance

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Eviction moratorium of 120 days starting March 27, 2020, and runs through July 24 — plus 30

days' notice.

Prohibits noticing or filing for eviction for nonpayment of rent and prohibits assessing

penalties/fees.

Applies to:

— Tenants with or without leases

— In occupancy in a covered property

— Condos and coops

— Direct, insured, guaranteed, supplemented, assisted in any way

— FHA

— Fannie, Freddie

— Rural Housing Vouchers

— VAWA

Federal Eviction Moratorium

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VAWA Programs:

— Low-Income Housing Tax Credits

— Section 8 Project-Based Rental

Agreements

— Section 8 Mod Rehab SRO

— Housing Choice Vouchers

— Public Housing

— Section 202 Housing

— Section 811 Housing

— Section 236 Housing

— Section 221(d)(3) (BMIR) Housing

— HOME

— HOPWA

— McKinney-Vento Homeless Assistance

Title IV programs

— Rural Rental Housing

— Housing Trust Fund

Federal Eviction Moratorium (cont’d)

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The Federal Eviction Moratorium does not:

— Cover evictions for reasons other than nonpayment of rent

— Cover evictions in process when the Act was passed

— Change the fact that rent is owed

Note: The moratorium relief for tenants is far broader in time and scope than the

mortgage forbearance relief.

NEED TO check state or local law, as well as whether courts are open and taking

new cases in your jurisdiction.

Federal Eviction Moratorium (cont’d)

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Type of impact Properties receiving

Section 8 or other

HUD/RD-funded rental

assistance (202, 811, 515, etc.)

Properties with “federally

backed” mortgages (Fannie, Freddie, FHA)

Properties withconventional financing

LIHTC

Properties/properties

participating in HOME program

Rental income sustainability

(ability to maintain pre-COVID-19 rental revenues)

Should experience limited

reduction in rental income

(mostly reduction in tenant share of income)

May experience significant

income shortfalls (tenants unable/unwilling to pay rent)

May experience significant

income shortfalls (tenants unable/unwilling to pay rent)

May experience significant

income shortfalls (tenants unable/unwilling to pay rent)

Eviction Moratoriums Subject to CARES Act/state/local moratoriums

Subject to CARES Act/state/local moratoriums

Not subject to CARES Act

moratoriums but are subject to state/local moratoriums

Subject to CARES Act/state/local moratoriums

Mortgage Forbearance Depends on financing, if

Federally-backed then covered

Mortgage forbearance available

Mortgage forbearance N/A;

negotiation specific to each

lender and property possible

Depends on other financing,

covered if federally backed

SBA/PPP Assistance – Provides “forgivable” loans to small businesses to maintain payroll, pay mortgages, etc.– SBA interim rule overrides CARES Act, limits availability for multifamily housing purposes

EIDL program Expands existing SBA Economic Injury Disaster Loan program

Main Street Lending New Federal Reserve program for loans to small/medium businesses; not “forgivable”

Overview of Stimulus Impacts

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Additional Resources

⎯ Nixon Peabody Affordable Housing Website

⎯ Nixon Peabody Coronavirus Response Team

⎯ Nixon Peabody’s COVID-19 Affordable Housing Update 2.0 Webinar

– April 13th

⎯ Nixon Peabody’s COVID-19 Affordable Housing Update Webinar –

March 31st

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Extensions of key deadlines to accommodate construction and lease-up

delays during the crisis

A minimum 4 percent Housing Credit rate to support the development of

affordable housing at a time when the "4 percent" Housing Credit rate has

fallen to an all-time low of 3.08 percent as a result of federal borrowing rate

cuts

— Would finance 126,000 more affordable homes over the next decade

Lower the “50 percent test” threshold for private activity bond financing

required to access 4 percent Housing Credits

Allocate substantial appropriations to be used for rental assistance,

operating expenses, replenishing reserves, and other emergency measures

COVID-19 Response: Immediate Relief

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Increase the annual 9 percent Housing Credit allocation by 50 percent,

phased in over two years at 25 percent per year, and adjusted for inflation,

beginning in 2021

Provide the additional basis boosts if needed for the financial feasibility

— 30 percent basis boost for developments financed using Multifamily Private

Activity Bonds,

— 50 percent basis boost for developments serving extremely low-income tenants,

— 30 percent basis boost for developments in rural areas, and/or

— 30 percent basis boost for developments in Native American communities

Other Proposals Under Consideration

— Address adjuster issues

— Increase cap on investment in credits

COVID-19 Response: Future Recovery

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Thank you