If you haven’t yet gotten frustrated and angry as a duplex or rental property investor yet, what I am about to share might end your happy state.
A few days ago Representative Ilhan Omar of Minneapolis sponsored a proposal in the U.S. House of Representatives called the Emergency Rent and Mortgage Cancellation Legislation.
The proposed legislation calls for a suspension of rent and mortgage payments for the duration of the current national emergency declaration. It would be retroactive to April 1 and continue until 30 days after the emergency ends. All rent and mortgage payments for April would be refunded.
Now hang on to the top of your head, because here’s where it gets ugly.
The proposal states: “The federal government will provide relief funds to landlords and lenders, allowing them to recoup their losses, so long as they agree to abide by a set of fair renting and lending practices for a period of five years.”
What are the standards investors who avail themselves of the relief fund will be held to?
If any of the conditions are violated, the federal government can demand repayment of all of the relief aid.
There is no mention of how landlords would pay for insurance, utilities and property maintenance during this time.
According to a poll taken by Data for Progress, which is a progressive-leaning organization, there is Bipartisan support for this legislation, which received majority support in their poll from women, men, college and non-college educated works, people under age 45, and both African American and white voters.
Omar’s link to download the bill seems to be broken. If you would like to read it, contact me at [email protected]
I would be glad to send it to you.
A proposal is a long way to a full-on bill passed by both the House and Senate. However, left unchecked, some variation of it may work its way through Congress and pass.
To contact your representative and voice your opposition (or support) of this bill, you can find them here.