Multi-family loan performance has held up relatively well despite the federal eviction ban, but the end of the July 31 national moratorium raises the question of whether this will continue.
The industry's ability to identify and resolve challenges in the population-based distribution of nearly $ 47 billion in government housing aid funds that the Treasury Department is donating to the states will play a huge role in whether that is the case. So it's worth noting that when analyzed by tenant share at the state level, money is a little incongruent – although recent estimates suggest it will be reasonable on an aggregated basis.
For example, nearly 13.5% of U.S. renters live in California, but it receives less than 11% of available funding, Freddie Mac researchers found in a report released Wednesday. In contrast, Vermont received 0.83% of the funding but is only home to 0.17% of the land's renters.
"About half of the states received less funding than their share of tenants would indicate, while the other half received more," said authors Corey Aber, a senior director of multi-family mission, policy and strategy, and Samantha Lerner, a political Employee who is studying.
Variations are generally minimal, with the exception of California and New York. The Empire State is home to 7.85% of the land's renters and receives 5.39% of the funds allocated by the Treasury Department.
The two states' discrepancies do not necessarily mean that the funds will be used up as there are mechanisms to resolve them, but they do point to additional challenges for New York and California after their respective eviction bans end. New York's will end on August 31st, and California has extended its moratorium to September 30th.
Freddie Mac has asked his network of multi-family mortgage companies to share information about helping tenants with property owners who manage loans, and those landlords, in turn, to inform their tenants.