Rep. Ilhan Omar (D-MN) reintroduces legislation that would cancel and forgive nationwide rent and mortgage payments throughout the coronavirus pandemic.
As it stands now, many outstanding payments during the coronavirus are in forbearance, which are fully owed payments due in the future. Under Omar’s plan, such forbearance would be totally forgiven, with no negative impact on credit ratings or rental history.
Additionally, the legislation establishes a “Landlord Relief Fund,” overseen by the Department of Housing and Urban Development to reimburse landlords for the loss of rent payments.
According to a press release, Omar also wishes to:
…create an optional buyout fund to fully finance the purchase of private rental properties by non-profits, public housing authorities, cooperatives, community land trusts, and states or local governments—in order to increase the availability of affordable housing during this downturn.
“While the American Rescue Plan extends the national rent moratorium—this is not a longterm solution. People across this country will be forced to pay tens of thousands of dollars in back rent when it ends,” Omar said.
“No one should be forced to choose between putting food on the table and keeping a roof over their heads,” said Rep. Mondaire Jones (D-NY), a co-sponsor of the bill.