WASHINGTON, D.C. (KLFY) — While the federal moratorium on evictions expires July 31, homeonwners of properties financed or guaranteed through the U.S. Department of Agriculture (USDA) will get an extra two months of protection.
The USDA announced that it has extended the moratorium through Sept. 30. USDA also reminded servicers that the Single-Family foreclosure moratorium will also expire on July 31. After this date, no new foreclosure filings should occur until homeowners are reviewed for new options to reduce their payments and stay in their homes. USDA released new COVID-19 Single Family Housing Guaranteed Loan Program loss mitigation options on July 23.
“The United States is still reeling from a nationwide housing affordability crisis brought on by the COVID-19 pandemic,” USDA Deputy Under Secretary for Rural Development Justin Maxson said. “USDA is taking this important action today to allow individuals and families who face eviction from homes purchased with USDA Single-Family Housing loans more time to maintain safe and stable housing, whether it’s in their current homes, or by obtaining alternative housing options. Actions like the one we’re announcing today are part of President Biden’s strategy to ensure a stable and equitable recovery from the disruptions of the COVID-19 pandemic and will provide continued protection for thousands of individuals and families in rural America.”
Beyond Sept. 30, USDA will continue to support homeowners experiencing financial hardship due to the pandemic by making loss mitigation options available to help keep them in their homes. Homeowners and renters can also visit www.consumerfinance.gov/housing for up-to-date information on their relief options, protections, and key deadlines from USDA, the Department of Housing and Urban Development, the Department of Veterans Affairs, the Federal Housing Finance Agency, and the Consumer Financial Protection Bureau.
The American Rescue Plan Act implements funding that invests in the people of rural America now and beyond the July 31 moratorium extension. It provides:
- $100 million through September 2022 in rental assistance for very-low-income tenants.
- $39 million in Budget Authority (BA) through September 2023 to help refinance direct loans under the Single-Family Housing Loan Program and the Single-Family Housing Repair Loan program.
- $500 million in Community Facilities Program funds to help rural hospitals and local communities broaden access to COVID-19 vaccines and food assistance.
Under the Biden-Harris Administration, Rural Development provides loans and grants to help expand economic opportunities, create jobs, and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety, and health care; and high-speed internet access in rural, Tribal, and high-poverty areas. For more information, visit www.rd.usda.gov. If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.