Proposed legislation that affects real estate

[Bill O'Donnell]

https://omar.house.gov/media/press-releases/rep-ilhan-omar-introduces-bill-cancel-all-rent-and-mortgage-payments-during?fbclid=IwAR1G3Hdu5MOl8_MelVLYoTxMF2IkK5sO0N6ajxefuE1UjGZ4bmwP6f74SR8

Has anyone seen this proposed legislation by the squad? I'm furious at the very idea that the federal government would even consider putting all lease contracts to the side, and give away the use of private property.

Hopefully it won't happen, but it upsets me that it is even possible...

If you have information on this topic, please share.

[Michael Plaks]

The proposal includes a clause to establish a fund to reimburse landlords and lenders...

[Bill O'Donnell]

@Michael Plaks

That sounds good, but after I saw how quickly the recent loan program went broke, I don't trust that.

Couldn't they just set that cash aside and help the tenants that have a need?

One of my tenants is an essential worker. He has never made more money in his life than the past month.

The rest are on unemployment benefits making close to,and in one case more than, when they worked.

Im certain some are desperate. Help them. But don't pretend that the rest are sinking...

Sorry if that sounds hard. But I am beyond frustrated. ..

[Christopher Smith]

Did you notice who is presumably one of the bill's sponsors? It's my guess this is more about optics than anything else, not to mention the fundamental underlying question of constitutionality. 

[Bill O'Donnell]

@Christopher Smith

Yes, I see that. However, with the way things are going, so many would like to buy votes at the expense of others. Scary times

[Scott Passman]

@Michael Plaks  Did you noticed the stipulations to receive these funds?  They are as follows:

Requirements – Landlords who receive relief funds through the HUD program must agree to the following fair renting terms for a period of 5 years:

 i. a rent freeze; 

ii. just-cause evictions; 

iii. mandatory documentation with any just-cause eviction; 

iv. no source of income discrimination; 

v. coordination with local housing authorities to make new vacancies eligible to voucher holders; 

vi. provision of 10 percent equity to tenants; and, 

vii. no admissions restrictions on the basis of: 1. sexual identity or orientation, 2. gender identity or expression, 3. conviction or arrest record, 4. credit history, or 5. immigration status. 

viii. Additionally, landlords cannot attempt to collect any back-rent when the moratorium is lifted, 

ix. they cannot retaliate in any way against residents and 

x. they cannot report residents to debt collectors or debt services to harm their credit. e. Recoupment – If any of the conditions of Section III(d) are violated, the federal government can recoup the relief funding.

Number 9 is of particular concern, but I don't know the details about what exactly provision of 10% equity to tenants entails.  I won't be taking the gov't up on this offer should this pass and I would guess that any property owner who can make the payments without the assistance wouldn't voluntarily shackle themselves to these restrictions either.  

[Bill O'Donnell]

@Scott Passman

This whole thing is, in my opinion, a way to socialize our property without the need to be honest..

They have me furious. Especially since government is by a large margin my biggest expense as a landlord. Waive all taxes, fees, licenses and such and see how far down rent goes..

[Michael Plaks]

Originally posted by @Scott Passman:

@Michael Plaks  Did you noticed the stipulations to receive these funds?  They are as follows:

No, I did not. I do not pay much attention to proposals that are DOA. But yes, these stipulations are something.