It has been approximately one month since the “COVID-19 emergency” was declared by President Donald Trump. It still is too early to fully understand the impacts the COVID-19 emergency will have on multifamily real estate, but matters should become clearer once May rents come due. Asset types and classes are expected to be affected differently, and much will depend on the scope and type of governmental aid offered to tenants. What currently is known, however, is that the $2.2 trillion stimulus bill known as the Coronavirus Aid, Relief and Economic Security Act, signed into law on March 27, includes two provisions that directly affect owners and managers of multifamily properties: certain forbearance rights under federally backed loans and a temporary moratorium on certain residential eviction filings. In addition to the federal moratorium under the CARES Act, many state and local jurisdictions have passed their own moratoria (or other tenant protections) on evictions and the imposition of penalties associated with the late payment of rent (the vast majority of which are limited to residential leases).
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