Does the rental market need its own Paycheck Protection Program?
In today’s Daily Download episode, HW+ Managing Editor Brena Nath discusses why some believe the housing sector needs its own version of the Paycheck Protection Program for businesses that own and operate multifamily housing.
The one-third of American households who rent their homes are facing unprecedented pressure from the economic fallout of the coronavirus pandemic. Without immediate help, families will face either eviction or crippling unpaid rent bills. The owners of rental properties will increasingly find themselves without the money needed to pay regular expenses including for health and safety measures, utilities, property taxes and payroll.
If ignored, the problems will get worse. Without federal support, the country will suffer cascading negative impacts throughout the economy.
There is a solution. We propose a program like the Small Business Administration’s Paycheck Protection Program (PPP), but directed specifically at the businesses that own and operate rental housing. It would be structured to provide funds, on an ongoing monthly basis, to substitute for lost rental income for as long as it is needed.
Following the main story, HousingWire Digital Producer Alcynna Lloyd covers Freddie Mac’s Primary Mortgage Market Survey data that reveals U.S. mortgage rates have now fallen to a new all-time low, the Labor Department’s report that indicates the nation’s jobless claims have spiked to 30 million during the COVID-19 pandemic, and the Federal Reserve’s decision to slow the pace of mortgage purchases.
The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.
HousingWire articles covered in this episode:
- [PULSE] Renters need help now – Here’s how to deliver it
- Mortgage rate hits all-time low after Fed rescue
- S. Jobless claims topping 30 million during the COVID-19 pandemic
- Fed is slowing the pace of mortgage purchases