New Legislation: Rental Property Relief Fund

[Pratap Koppula]

If the legislation gets through, no debt will be accumulated for the tenants for next one year and the rent will be paid by Dept of Housing and Urban Development. 

The key point to note here is the recent proposals for (i) Payroll Protection Program (PPP) (ii) SBA Economic Disaster Injury Loss (EDIL):

(i) PPP loan of 650Bn the Congress vested the discretionary power to Banks under writer and they have given based on the their Clients balance on the line of Credit. Out of 10 loans we applied for PPP, only 3 loans got approved who has good bank relations.

(ii) We applied around 20 SBA Economic Losses, the Initial proposal was to help with $10K as an advance that can be waived for payment. Nearly 30M small Businesses applied for $350B fund and most of the Small businesses got a $1K or $2K depending on number of employee upto a maximum of $10K. Only half of the 20 got funded so far.

The reason why we are sharing the information is, the relief funds are not actually reaching the most impacted businesses.

How is your rent collections, reserves and contingency plan.?

If we buy the Property now, do we need to contingently reduced the price for next one year rent discount.?