Proposal #2: Cancel Rent & Mortgage Payments Through The Coronavirus Emergency

A U.S. Representative has introduced the Rent and Mortgage Cancellation Act. This Act, if approved, would call for a nationwide cancellation of rents and home mortgage payments through the duration of the coronavirus pandemic, or up to one year.

The bill would include:

• Full rent payment forgiveness for your primary residence
• Full mortgage payment forgiveness for your primary residence
• No accumulation of debt for renters or homeowners
• No negative impact on their credit rating or rental history. 
• It would establish a relief fund for landlords and mortgage holders to cover losses 
• It would create an optional fund to finance the purchase of private rental properties to increase the availability of affordable housing.

The bill would be retroactive to March 13, 2020, and would last for one year, unless extended. Renters and homeowners who made payments during April 2020 would be reimbursed for their payments.

No Double-Dipping Allowed. The bill would only allow taxpayers to receive coverage for their primary residence. It would not cover second homes, vacation homes, or other non-primary residences. Those who have both a mortgage and also rent a home would have to choose the home for which they would want to receive financial relief.

The Department of Housing and Urban Development would create a relief fund for lenders and landlords to cover the lost rental and mortgage payments they would have received.