Rent and Mortgage Cancellation Act Proposed During Pandemic
This could be the answer many people need during the coronavirus pandemic.
A Representative from Minnesota has proposed a bill that could benefit many people nationwide during a time when many families are being affected due to their employer being closed for business or on extremely limited hours of operation. These unfortunate events have yielded millions of Americans being laid or furloughed.
Here's how it would help with tenants and homeowners,
The bill would constitute a full payment forgiveness, with no accumulation of debt for renters or homeowners and no negative impact on their credit rating or rental history.
Landlords and mortgage holders would benefit too,
The legislation will establish a relief fund for landlords and mortgage holders to cover losses from the cancelled payments and create an optional 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.
According to WOIO (Cleveland), if the bill passes it would be a one-year deal.
If approved, the bill would be in effect for up at one year, retroactive to March 13.
It'll be interesting to hear the arguments from both sides over this idea.