allocations of federal grant funding for state and local governments would eventually be used to support rental assistance programs . Even with some challenges with program requirements implemented by states and localities , these resources helped housing providers fill growing gaps in rental income .
Expanded mortgage forbearance options for housing providers with federally backed loans and temporary business loans through the Small Business Administration ’ s ( SBA ) Paycheck Protection Program ( PPP ) were on their face helpful . Unfortunately , both would prove only marginally beneficial as time went on , as the latter excluded segments of the multifamily industry from eligibility .
Of most concern , the CARES Act imposed an eviction moratorium for residents at properties with federally-backed mortgages or that receive funding from federal housing programs , regardless of actual impact from the pandemic and without any other guardrails . The legislation also failed to set aside dedicated emergency rental assistance funding , a crucial federal resource that NAA and many other housing groups urged Congress to deploy . Ultimately , not being able to agree on the right structure to deploy rental assistance , Congress opted for direct payments to individuals .
QUICK LESSONS LEARNED AND LEANING INTO ADVOCACY
From the passage of the CARES Act going forward , NAA ’ s advocacy efforts would ramp up dramatically and were defined by two factors . First , we learned more about how the pandemic and economic instability was truly impacting our members and what they really needed to survive the crisis and ensure industry viability in the long-term . We would learn that using programs like mortgage forbearance or PPP loans to fill the hole left by unpaid rent were at best weak band-aids and that the only true way to address the crisis was rental assistance . Only financial assistance could stabilize renters experiencing financial challenges and provide quick relief directly to struggling housing providers who needed help to cover their expenses in light of rental payment shortfalls . Second , we quickly saw the direct impact of eviction moratoria on industry operations . Housing providers , especially small firms , were steadily draining reserves and even personal savings to keep their businesses afloat . They could not be asked to carry the burden of the pandemic alone . Funding robust rental assistance and ending eviction moratoria would form the core of our efforts going forward .
THE HOUSE ACTS : A VERY MIXED BAG
As NAA and the apartment industry bombarded Congress almost nonstop from April through October ( nearly 75,000 letters were sent over this period ), partisan fighting stopped any real negotiating by policymakers , even as NAA continued to educate them on the need for rental assistance and further relief for the rental housing industry and the dire consequences of continued extensions of the federal eviction moratorium . Lost was the unified voice that had marked Congress ’ initial legislating in March .
40 | TRENDS FEBRUARY 2021 www . aamdhq . org