Owners of multifamily properties will see impacts from COVID-19 increase in April and subsequent months. Freddie Mac Multifamily (Freddie Mac) has announced it will offer a COVID-19 Forbearance Agreement for borrowers with Freddie Mac loans to obtain payment relief for three months. Deferred principal and interest must be paid back over a period of twelve months following the forbearance period. Borrowers must comply with covenants contained in the form agreement, including, among other things, adjourning all tenant evictions based on non-payment of rent resulting from the COVID-19 crisis and compliance with the CARES Act. Freddie Mac is agreeing to cover its own legal fees. Fannie Mae is expected to roll out a similar agreement.
Please contact Hirschler’s real estate and restructuring teams to discuss your options, the forbearance terms and this program.
Kristen M. Chatterton