Section 4023 of the Act relate to forbearance of loan payments for multi family homes and a moratorium on certain evictions. Here is what you need to know:
- If you have a federally backed multi-family mortgage loan and are experiencing a financial hardship because of COVID-19, you can request a forbearance for up to three 30 day periods on your mortgage and should reach out to your lender for relief. To do so, you had to have been current with your mortgage as of February 1, 2020. However, these sections apply only to properties designed for 5 or more dwelling units
- If you receive a forbearance on your mortgage, during the time of the forbearance you cannot evict a tenant for non-payment of rent or other charges, nor can you charge any late fees, penalties or other charges.
- You also cannot send a notice to quit to that tenant, for any reason until at least 30 days after the forbearance expires.
Nearly 2/3 of mortgages are federally backed, so you should check with your lender and find out if you might qualify for forbearance.
Finally, remember that forbearance does not mean forgiveness. You are still responsible for the payments, but you have a break from paying.