Democrats in both chambers have proposed legislation that would provide federal aid to cover emergency residential rental assistance during the COVID-19 pandemic.
A House version, proposed by Rep. Ilhan Omar, a Minnesota Democrat, the Rent and Mortgage Cancellation Act, would create full rent payment forgiveness with no increase of debt for renters or homeowners, irrespective of income.
The legislation, which is co-sponsored by fellow House Democratic far-left “Squad” members Reps. Alexandria Ocasio-Cortez of New York and Rashida Tlaib of Michigan, would also institute a relief fund for landlords and mortgage holders to cover losses from the canceled payments.
In a May 2 tweet, Omar said, “If Congress doesn’t #CancelRent and mortgage payments now, even more Americans will face mass displacement and homelessness once eviction moratoriums are lifted and this crisis is over. #RealReliefNow.”
The proposals are among many aimed at relieving mushrooming unemployment and lost wages from the coronavirus pandemic, which has virtually shut down the economy. Economists estimate the unemployment rate could reach above 20%, rivaling the Great Depression.
But support on Capitol Hill for federal aid for housing costs has limits.
Sen. Marco Rubio, a Florida Republican, told the Washington Examiner Wednesday he thinks Omar’s bill will exacerbate the current circumstances.
“I don’t know how that would work because we don’t want to see people evicted from their home, especially if you’re asking them to stay home. But creating a bankruptcy crisis in the real estate market, it’s also not going to be positive for the country,” he said. “So, you’ve got to balance the equities there and figure out a way to help people without hurting another group of people.”
Sen. Kevin Cramer, a North Dakota Republican, told the Washington Examiner that he could not see how forcing a landlord to forgive rent could be legally enforced, citing the first coronavirus stimulus law enacted, the CARES Act.
“The CARES Act has a six-month forbearance for federally backed mortgages. That’s about half of the mortgages probably in the country. On the private side, it’s a little more difficult to do that. It’s certainly more difficult to force something on a landlord that has to also meet the bills,” he said.
Sen. Sherrod Brown, an Ohio Democrat, proposed $100 billion in rent relief in a bill on Monday.
“We cannot leave behind the millions of Americans who could be facing eviction without #RentReliefNow,” Brown said in a tweet. “I’m introducing a bill that provides $100 billion in emergency rental assistance to help people pay their rent during and after this pandemic.”
Sen. Jack Reed, a Rhode Island Democrat, is working on this bill with Brown.
“The bill that will provide significant resources to state housing authorities and helping people,” Reed told Washington Examiner. “We did something like this in 2010.”
Reed said the bill is intended to help tenants and landlords.
“If [landlords] are getting their rent, they’re more likely to make their mortgage payment and maintain the building. If they’re not getting their rent, [the tenants] get evicted,” he said. “That doesn’t put money into their pocket, necessarily. Probably not. And they can’t maintain their mortgage payment, so this is something that will help the entire economy.”
