CARES Act
Public Law 116-136
SEC. 4023. FORBEARANC:E OF RESIDF.NTl/\1. MORTGAGE I.OAN l'/\VMENTS FOR MULTIFAMll,V l'HOPERTIES WITII l'EDERAU.V
BACKED LOANS.
(,1) I~ GEN I·. 1: ,1 I. .-Du1 ing llw cnvcn•d pe1 i11d, .i 111ullif,1111ily nrnng;ig,~ 10"11hun m1·,•1 ll'ilh ,1 F,•d,•rally h,11 lwd 11111ILif,1111ily
t•XpPriencmg a financial hardship dtll\ dirertly or indin•c1l.1·.
Lo Lhi• COVID-1 '' 1•111ergencv n1.1y n•qtll•sl ,1 forlw;11",111r,• 11ndl'r tlw terms \1•1
forth in lhis scdion.
(h) H1 11111 s·1 Foil RE 1.11: I.-/\ mullifamily horr11wt•r with a Feder;1lly hacked 11111lufamily 1w,ngagc• lu,111 that 11 .1s c11rrl!11l 1111 ils
pay11wrHs as of Fchr11.1ry
l, 2020, may s11b11111 s11hsP1 lio:1 [a) lo lhl' ho1Tow1•r's st•n•11·,•
1
;111oral or wrill<!ll rcq11Psl for fo1 lwara111:c 1111<h•r
affirmi11g that till' n111ltif,1mily hnrrow,·r is t•xperienring
a fi11,1nrial hardship dunng lht• COVIIJ-1 'I ,•111t•1-gi•ncv.
(c) Fo1rnE1\l!,\r.:t:E
PEIUOll,- .
f 1) IN c;r,:NEl{/\1..-IJpon ren•rpl of an oral or wrilt,•11 rl'q11,•s1 lor forhl',1r,111n•Irum ,1 11111llilamily ho1T<1w1~r.;r servicer shall-
(/\) docunw11l the tin;111ri,1l hardship:
(Bl provide tlw forbearance lor uµ lo :rndays: a11d
(Cl extend the forht•.trc111ce for up lo l ,1tldilional :rnday period, upon tlw niquesl 111th,• hnrn>w1•r providt•d that, tht• hor ro1wr\
rt•qul'.~I for an ext,·nsiun is madL• during the rnverl'd 1wrint.l, and,
,ll lc,1sl IS day, prinr In tlw ,•rul 111 till' lorlw,1r;111u• 1wriocl descrih,•d 11nd,•r
suhp,1r.igr;1ph
IB).
(2) RIG\ IT TO DISCONTINUE.-A muhil'amily hnrrmVL"r shall hav1• the oplit111 lo disrnnlinue
till' l11rhe.rr.111n•al nny linw.
ld I REl\ Tl:I< l'IWTEt:l JO I\' s D11 ll r r,;,; Fn IH!L\ I<,,r,;.:E I' ri;1 ,111.-J\ multifamily lwrrowL·r rh,H rl'rl!iv,•s a forlwarance 1111d1•rthis Sl'l'ti<111
111;1ynot, for till' tlur,llron
orthe fnrht•aranct•-
( 1) evict or initiate the ,•virlion of a tenant
frnm a dwelling uni I I01·;it('d in or nn the applirahll• properly sull'IV for nonp.1ymt•n1 ol 1 ,•nl
or other 1,•es or chJrgl's; or
(2) charge any late fees, pen,1llies, or nlher chargt•s In a ten,111t clcscrihl'd in par,1graph ( l) fur l,111•p,1ymcn1 nrrent.
(cj N 11T1
i: I .-/\ multil'arnily hurn,wcr lhal rt•ceives a lorhearan,·,• under this section-
( I) may not require
a tl'11,111lto v.ic.ill' ,1 dwelling unit lur,lll'd in or on the applir,1hlt• propPrtv lwfon· tlrl' dale that rs :rnd,,_\'\ ;1fler rill'
dale on which the horro\wr provides the te11.111twith a n111ice tu v,H·,1tc: and
(2) may not issue a notice to va1 ,lit• under par,1graph ( l) lllllil allt•r the e.,111r.1tion nl lhr• tnrhe;1r,111n·.
(I) Dl·TI NITIOl\'~.-ln this section:
( 1) /\1'1'I.IC/\BLE l'IWPERTY.-Tht> IL•rm "applirahl1• property", with re~perl to a Ft•d1•1-.1llyh,11·k1•dmull il.imily mongagi: loan, 111L•;111s
the rL"sidential multifamily property against wh1rh lhc morlgagP loan is s,•nrrcd hy a lien.
(l) FEDF.R/\1.1.Y BACKl·:D MlJI.TIFAMII.Y MOlff(;,\(.E 1.0/\N.-The 1,•rn1 "federally i11cl11d1•sb,1rked 11111\tilamily 111urtg;rgl' 111,111" ,my
lnan (other than tcrnpor;ir_v fina11rn1g such a~ a rn11stru1 lion loan) that-
(/\) is sernn·d hy c1 lirst or sulwrdin,llc lien on r<'sidcnlial mulliLunily real prope1·ty desig1wd p1 inrip.illy for llw n,rup,11u·y ol:, or
more farnilil•s, induding any such secured lo.111,the 1non•,•ds ol which
;u-1• usl'd lo prepay or pay ull':111 exi,ling 10;111sen1n•d hy th1• s;1111e
property:
amt
(ll) is made in whole or in part, or i11s11rccl,guManlced, supplemented, or assisted in ,lnV way, hy anv omccr '"' agency of tlw Feder.ii
1;overn111ent or 1111dL•ror in co1111eclio11 with
a housing or urban dl'v1•lop1111•n1program adminislcn•d hy till' s,,.:rl'tary ol !lousing and IJrhan
l)evt•lnpmcnl or a housing or rclatL•d program .1dmi11istercd
hy any olh<'r such officer or ag,•ncy. nr is p11n:hased or securilizl'd by tlw
Federal llome Loan Murtg.ige Curpor.1lio11 or the Fcclrral National Morlg,1gt• /\ssol'i,llion.
(]) MIJI.TIFAMII.Y llOHROWER.-tlll' borrower" me.111s a horrow,•r ol .1 n•sicl,•ntial 11111ng,1ge hyli•rm "111ul1if.1111ily loan th,H is s,•rnred
,1 lien ,1gains1 ,1 properly comprising:, or more 1hwlling units.
( 4) COVll)-1 'J EMEllGENCY.-Tlw lt•rm "COVIil- l <J1:merg,•11cy" 1111•,rns the n,llional 1•11w1g,•111·yrn111·c•rning th,· novel rnronaviru,
disc.1se
lCOVIi)- i <)) outbreak dcdarcd by till' l'residcnl 011 Marrh I], 2020 under thr N,11ional Enwrg,•ncies Act (SO U.S.C. 1601 l'I st•q.).
(S) COVERED PEIW >D.-The term "covered perincl" nw;111s the pPriod lwgin111ng
011 tlw date ol 1•11.1rtmcr11 nf I his Act and t•11d111gnn the
sooner
of-
(A) the termination date of the national emergency concerning the novel coronavirus disease (COVID-19) outbreak declared by the
President on March 13, ZOZO under the National Emergencies Act (SO U.S.C. 1601 et seq.); or
(ll) l)pcemlwr :{I. :rn:w.
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