We need your help to confirm the status of your properties in relation to the CARES Act that was signed into law on March 27. What is needed as a result of the CARES Act requirements? For every property (for every client of ours), we need to know whether that property is financed with any loan(s) that meet the definition of Sec. 4024 of the Act as a “Federally backed mortgage loan” or a “Federally backed multifamily mortgage loan.”
URGENT UPDATE – Up-to-date information on the 9/4 CDC’s Order: A “Temporary Halt” for Nonpayment Evictions
For each property that DOES have that type of financing, the CARES Act’s 120 Day late fee and eviction “moratorium” would apply to the Property (i.e. the process for new non-payment eviction cases, and charging of late fees are suspended until after July 25th).
If you know your Property is a “Covered Property” under the Act, then please just send us a message telling us the property name and its status as “Covered” so we may note that in our system.
For Covered Properties, however, we are still offering our assistance: we have put in place a program to help you communicate with residents who have not yet contacted you, but may be experiencing COVID-19 related hardships. So, if you have residents who may need encouragement to engage with you in your new assistance programs (i.e. those who aren’t communicating with you), we have a plan to help. Please click here to submit a request for more information to us about this new (NO CHARGE) service.
For every property that is a “Covered Property,” please note that in the weeks ahead, you may see a new information request from us: we will ask clients to verify the status of their Loan anytime they ask us to file a Writ for any of their cases. The reason for this is that Sec. 4023 of the Act allows a Covered Property to ask the lender for “forbearance” from making the Property’s mortgage payments, for up to 90 days. If your property goes into “forbearance” status at any time, Sec. 4023 prohibits it from not only filing new eviction cases, but also from seeking a Writ on any Judgments for possession that you might have obtained along the way – all the way through the end of 2020, potentially. So, every Writ request for Covered Properties will be followed by a request from our Team that you first verify that the Property is not in forbearance, so we know you are allowed to proceed with the Writ before filing it.
For each property that does NOT have any “federally backed mortgage” financing, those properties are able to conduct business as usual (in NC, the Courts are expected to again be accepting new eviction filings and holding hearings on previous cases starting June 21). However, in each of our 3 service States (NC/SC/GA), the Courts now require additional documentation as part of all new eviction cases: a CARES Act certification/affidavit (each state has their own form) must be provided with each new case sent to the Courts for filing.
So, in order to proceed for you, we need all clients to reach out to their lender/servicer and ask them to provide a formal written confirmation of whether the Property has a “federally backed multifamily mortgage loan” as defined in the CARES Act. If the Property is backed with a loan covered by the CARES Act, then we will note it in our records; but, if the Property is either not federally backed or is owned free and clear, then we will need the following information so that we can provide it as part of the CARES certification documentation that is now required:
- For loans that are not federally-backed, we need a letter on letterhead from the lender/servicer that says:
Our Company is the [lender]/[servicer] of the loan(s) issued to or for the benefit of the Owner of the property known as [Property Name] – [Owner Legal Name]. As such we are familiar with the nature, backing and issuance information for all such loan(s). We hereby confirm that there are no loan(s) in place for this Property that meet the definition of the term “Federally Backed Multifamily Mortgage” as defined by Sec. 4024(a)(5) of the Act.
- For properties not subject to a mortgage:
We’ll need the Owner to provide us with an Affidavit confirming that it is not subject to financing, so that when we prepare and submit cases for any evictions that are needed during the Moratorium period; the Affidavit can be provided to the Court so that it is clear that the eviction filing is proper under the Law. For single family properties (as opposed to Multi-Family Apartment Communities), we ask that you use this affidavit instead.
Once you have that written confirmation, please upload it to our partners using the form below so that we can have all your properties properly entered into our system as soon as possible so we know whether we’ll be able to file an eviction case with the Court for you.