Emergency Housing Protections and Relief Act of 2020

Emergency Housing Protections and Relief Act of 2020

This bill addresses various housing issues in response to the COVID-19 (i.e., coronavirus disease 2019) public health emergency, including housing assistance programs and moratoriums on evictions and foreclosures.

The bill authorizes additional housing assistance, including rental assistance, for (1) low-income individuals with families, including those who are homeless or at risk of homelessness; (2) the elderly; (3) individuals with disabilities; and (4) rural renters.

In addition, the bill establishes a 12-month moratorium on evictions covering all tenants, whereas the previously enacted moratorium covered only tenants of federally assisted properties.

Similarly, the bill establishes a 12-month moratorium on foreclosures that covers all tenants, whereas the previously enacted moratorium covered only federally backed mortgages.

The bill also establishes an automatic 60-day forbearance (i.e., suspension of mortgage payments) for a single-family mortgage that becomes delinquent by 60 days during the public health emergency. Under current law, the borrower must request a forbearance. This automatic forbearance also applies to certain reverse mortgages.

The bill extends the maximum period of forbearance for multifamily mortgages from 90 days to 12 months.

Additionally, the bill establishes a six-month moratorium on the repossession of personal property used as a dwelling.

The bill also provides additional bankruptcy protections by (1) increasing the homestead exemption (generally, the equity in a residence that is protected from creditors in a bankruptcy proceeding) from $15,000 to $100,000, and (2) expanding eligibility for Chapter 13 bankruptcy.