Over the last month, I’ve spoken with many multi-family housing investors and managers. Very few have reported issues collecting rent for April. Most said they expect May to be another story entirely.
In anticipation of this challenge, the Minnesota state legislature has been considering the creation of a bill that would either increase the amount of funding for the existing Family Homelessness Prevention and Assistance Program (FHPAP) or creating a separate fund to provide rental assistance for low-income Minnesotans.
The proposal, which has support from the Minnesota Multi-Housing Association, and Minnesota Housing Partnership calls for $100 million in state funding to FHPAP. If a tenant qualifies for assistance, rent will be paid directly from the fund to their landlord.
Many fear if tenants fall too far behind in rent they will never be able to catch up, leaving landlords holding the bag. For many of us, no matter how great our reserves, a prolonged period without rent will result in catastrophic losses.
The best thing we can do, for ourselves and our tenants is to reach out to our state legislators and senators to tell them how we feel.
To find contact information for Minnesota legislators, CLICK HERE.