President Joe Biden is extending the rent and mortgage relief programs installed by the Trump administration through the end of June, the White House announced early Tuesday morning.
“The COVID-19 pandemic has triggered a housing affordability crisis,” senior administration officials said in a statement. “Today, 1 in 5 renters is behind on rent and just over 10 million homeowners are behind on mortgage payments. People of color face even greater hardship and are more likely to have deferred or missed payments, putting them at greater risk of eviction and foreclosure.” (RELATED: Biden Won’t Cut Down $1,400 Stimulus Checks: ‘That’s What The American People Were Promised’)
WASHINGTON, DC – FEBRUARY 12: U.S. President Joe Biden leaves the Oval Office prior to a Marine One departure from the South Lawn of the White House February 12, 2021 in Washington, DC. President Biden is spending his weekend at Camp David. (Photo by Alex Wong/Getty Images)
The current eviction forbearance and foreclosure moratoriums, established under 2020’s CARES Act stimulus plan, are set to expire at the end of March. Tuesday’s action extends those programs through June 30, 2021, and provides “up to six months of additional mortgage payment forbearance, in three-month increments, for borrowers who entered forbearance on or before June 30, 2020.” The move is a “coordinated” effort from the Departments of Housing and Urban Development, Veteran Affairs and Agriculture.
Administration officials added that it “is critical that Congress pass the American Rescue Plan to deliver more aid to struggling homeowners.”
“The rescue plan creates a Homeowners Assistance Fund which will provide states with $10 billion to help struggling homeowners catch up on their mortgage payments and utility costs. This relief is critical for homeowners with mortgages in the private market who are not able to take advantage of today’s actions and may face longer term challenges,” the statement continued. “The rescue plan creates a Homeowners Assistance Fund which will provide states with $10 billion to help struggling homeowners catch up on their mortgage payments and utility costs. This relief is critical for homeowners with mortgages in the private market who are not able to take advantage of today’s actions and may face longer term challenges.”
The president has maintained the need for Congress to pass immediate economic relief in the form of his $1.9 trillion stimulus plan. The text being produced by Democratic leadership makes good on Biden’s pledge for another round of direct stimulus checks to taxpayers and has received positive endorsements from local lawmakers in both parties in recent weeks.