February 09, 2021

As relief package is crafted, lawmakers propose ways to support homeowners

Capitol domeAs Congress pursues additional coronavirus relief measures, the House Financial Services Committee tomorrow is set to markup its portion of the next coronavirus relief bill with provisions to support workers, homeowners and renters, and more. In addition, senators have reintroduced legislation to provide financial assistance to homeowners to help them make mortgage and other payments.

The Senate bill, the Homeowners Assistance Fund (S. 254), introduced by Sen. Jack Reed, D-R.I., Senate Banking Committee Chairman Sherrod Brown, D-Ohio, and Sen. Patrick Leahy, D-Vt., would create a $75 billion Homeowner Assistance Fund, which would provide funds to state housing finance agencies to help individuals impacted by the pandemic make home-related payments. The funds could be used toward mortgage relief, utility payments, and other areas to prevent eviction, mortgage delinquency, default, or foreclosure.

"NAFCU applauds Senators Jack Reed, Sherrod Brown and Patrick Leahy for introducing legislation creating a $75 billion homeowner assistance fund to help struggling homeowners and communities amid the coronavirus pandemic," said NAFCU President and CEO Dan Berger. "This bill will help prevent undue economic hardships for Americans during this difficult time, and we look forward to supporting this legislation in our advocacy efforts."

In the House Financial Services Committee, the budget resolution bill directed the committee to draft laws within its jurisdiction to help achieve priorities within President Joe Biden's $1.9 trillion coronavirus relief plan. Some of the provisions in the committee's proposal include:

  • just over $9.9 billion for emergency homeowners assistance;
  • $25 billion for emergency rental assistance; and,
  • $10 billion to states to provide funds to establish or support small business loan participation programs.

NAFCU will be following tomorrow’s markup, as well as work this week by additional committees, of the new relief package.  Stay tuned to NAFCU Today as the association's advocacy team provides feedback on how these provisions could impact credit unions and their members.