April 2, 2020 – The USDA has released further information regarding the CARES ACT and RD515 loan forbearances which states all RD515 properties have the opportunity to defer loan payments up to 3 months, for those experiencing financial hardship from the COVID-19 pandemic. The deferred payments will be added to the final payment when the loan matures. Additionally, you will have the option to forego your monthly reserve deposits for up to 3-months.
Click here to view the statement from Nancie-Ann Bodell, Deputy Administrator, Multifamily Housing
Click here to view the Sample USDA Rural Development “COVID-19 Relief Workout Agreement”
It is also important to note that the CARES Act prohibits evictions due to non-payment of rent for the next 120 days, and does not allow owners to charge late fees or otherwise penalize tenants who are unable to pay rent. This eviction prohibition became effective upon enactment of the CARES Act (March 27, 2020) and is effective for 120 days for Section 514, Section 515 and Section 538 loans, as well as Multifamily voucher holders. As stated in 7 CFR §3560.452(c)(8), failure to comply with this Federal law is considered a non-monetary default.