Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
Hey BP,
Congress is thinking about passing another stimulus check for the American people. There are two proposals, one outlines 2000/month for each individual and the other stops rent and mortgage cancellation for 1 year on primary residents. Landlords are receiving an emergency fund in lieu of the CoronaVirus effects. What does everyone think about this new proposal?
Rental Property Investor · Newport Beach, CA · Member since 2017 · 218 posts · 138 votes
6y
@Nick Rutkowski Pretty sure this is just a couple representatives looking to get credit for trying to give out free money, for when they need to run for reelection. No way would it really be considered in Congress.
Interesting idea. I wonder how much extra work it will create for landlords who are still working full time and now have to apply for money to get their rent. On the other hand, landlords would know that they are going to get paid.
Rental Property Investor · Batavia, IL · Member since 2018 · 452 posts · 672 votes
6y
The landlord relief bill comes with a lot of strings attached to it. The stipulations to receive these funds 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.
The 1200 dollars cost us (the government) 290 billion. An increase to $2000 is an additional 116 billion for an approximate cost of 406 billion a month for 12 months for a total of about 5 trillion dollars not counting funding mortgages and landlords. Not sure there is enough money in the world to cover this. This is a an economic meltdown. I agree another round of stimulus money is needed. Maybe 3 months. Don’t forget the bailout for the banks. You don’t think there not getting something either. The banks always make out. It’s good to be the bank. We probably need over 20 trillion. Lets put more money into research to fund a vaccine.
Rental Property Investor · New Castle, DE · Member since 2017 · 95 posts · 102 votes
6y
Just read up on it. I’m not sure what “10% equity to tenants” means in this scenario but it’s interesting. A lot of moving parts with that proposal. It would make a lot more sense to extend and/or raise the stimulus checks than attempting that proposal.
The landlord relief bill comes with a lot of strings attached to it. The stipulations to receive these funds 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.
Whoa whoa whoa. Hold it. Stop. Who is proposing this? I can't be the only person to see how bad of an idea this is.
Just my luck, I finally get enough money, the promotion I need to start investing, the unfortunate luck of prices coming more reasonable in my target market and now this. I've been reading all the books and listening to all the podcast I can lay my hands on, I guess I'll have to keep studying and waiting until we have some confirm hold on whats going to happen over the next year or so...
Rental Property Investor · Raleigh, NC · Member since 2016 · 396 posts · 995 votes
6y
I quickly skimmed through the proposal, (not wasting my time reading something until it's passed into law), but I didn't see anything about a 10% equity to tenants or anything similar.
Biggest things I noticed during my quick glance was a 5 year rent freeze, mandatory to open up to section 8 if the current tenant leaves creating a vacancy, and no discrimination based on prior law enforcement convictions.
Owners of multifamily units will be required to notify and get approval from HUD to sell or transfer the property.
Sounds like a sh*t show. Assistance shouldn't be conditional on adhering to their agenda. I'm not interested in having a nationwide rent control moratorium.
Rental Property Investor · Newport Beach, CA · Member since 2017 · 218 posts · 138 votes
6y
@Nick Rutkowski Pretty sure this is just a couple representatives looking to get credit for trying to give out free money, for when they need to run for reelection. No way would it really be considered in Congress.
The 1200 dollars cost us (the government) 290 billion. An increase to $2000 is an additional 116 billion for an approximate cost of 406 billion a month for 12 months for a total of about 5 trillion dollars not counting funding mortgages and landlords. Not sure there is enough money in the world to cover this. This is a an economic meltdown. I agree another round of stimulus money is needed. Maybe 3 months. Don’t forget the bailout for the banks. You don’t think there not getting something either. The banks always make out. It’s good to be the bank. We probably need over 20 trillion. Lets put more money into research to fund a vaccine.
That is a textbook example of the cure being worse than the disease.
Investor · shawnee oklahoma · Member since 2017 · 194 posts · 148 votes
6y
This proposal is a fraud!
For posterity
“First Right of Purchase – For a period of 5 years, private rental property owners seeking to sell their property must first notify HUD. HUD will notice the availability to purchase through this acquisition fund. If an eligible purchaser does not come forward and apply to the fund within a period of 60 days, the property owner is permitted to make a private sale.
d. Eligibility – Non-profits, public housing authorities, cooperatives, community land trusts and states, municipalities, counties or parishes, or other unit of general local government are eligible to apply to this fund. e. Limitations – Any proposed sale must be entered into by both parties voluntarily and purchases must be made at the current fair market value at the time of the sale. f. Requirements – Purchasers who take advantage of this fund must agree to the following: i. permanently reserving a portion of rent-restricted units for lower-income households; ii. just cause evictions; iii. mandatory documentation with just cause evictions; iv. no source of income discrimination; v. no a 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. vi. democratic control by residents vii. Purchasers must also agree to provide residents with free, voluntary wrap- around services that help address the needs of those experiencing chronic homelessness or housing instability – like access to healthcare, employment or education assistance, childcare, financial literacy class and other community-based support services. If the conditions are violated, the federal government can seek to recoup the funding.”
Rental Property Investor · San Anselmo · Member since 2015 · 659 posts · 600 votes
6y
This is an immediate injection of socialism. I am all for helping the consumers and tenants. Incentivizing people to not go back to work (or pay taxes) by giving free rent and checks above their work rate is not ideal.
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
6y
@Kenneth Garrett
So now who is going to pay for all of this money distribution? IMO, the US doesn’t create much production at a cheaper price than other nations. I dont see us being able to pay this off.
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
6y
@Tyrone Jackson
I don’t see that passing or being enforced. If it does who would be in charge running the department? The state or the local municipalities, my county can barely enforce landlords to comply with occupancy permits.
The general idea is meant to be helpful, but the fine print being posted creates many more problems. The first right of refusal for sales (locked in for 5 years), can't use credit history to , rent, rent freezes for 5 years, '10% equity to tenants", and this posted by someone else "Purchasers must also agree to provide residents with free, voluntary wrap- around services that help address the needs of those experiencing chronic homelessness or housing instability – like access to healthcare, employment or education assistance, childcare, financial literacy class and other community-based support services. If the conditions are violated, the federal government can seek to recoup the funding".
I don't even know what the last part means. Who is the purchaser?
Much of this further pits the tenants against the landlords rather than trying to get people working together and helping each other.
Real Estate Broker · Chicago, IL · Member since 2015 · 1k+ posts · 2k+ votes
6y
Wacko bills are proposed/introduced all the time. That's the way its always been. Then they get shut down quickly in committee. The only difference is this fits the liberal media's agenda, so suddenly we are hearing about a proposed bill, which has ZERO chance of even reaching a house or senate vote, as if its going to be entered into law tomorrow.
No need to read it in detail, this wish list is going nowhere.