The Rural Housing Service (RHS) is proposing to publish a final rule with comment to update 7 CFR part 3560, subpart D, to implement changes related to the Multi-Family Housing (MFH) Direct Loan Program.  The updates to the regulation would provide that, during the COVID-19 pandemic and any other public health emergencies, the Secretary may require that section 515, 514 and 516 MFH program borrowers provide tenants with information on any available emergency funding specific to the emergency prior to initiating a lease termination or eviction action. 

Additionally, the expected outcomes of this regulation update, will provide that in such circumstances, the Secretary may extend the time period before lease termination for nonpayment of rent to 30 days after the tenant has received such information. Currently, MFH section 515, 514 and 516 tenants must vacate the property within 30 days of notice of occupancy termination. This extension will provide adequate opportunities for tenants to overcome impediments to secure emergency funding and will prevent unnecessary evictions. The programs covered by this part are authorized by title V of the Housing Act of 1949, as amended. 

The changes are expected to broaden the level of assistance that is available- during times of natural national emergency for low- and moderate income families to continue to assist with their rent payments. Tenants can remain in their housing and continue their rental payments which gives them the resources to pay their bills and ultimately impacts the economy in positive way.  Customer experience will also be enhanced by making additional resources available to tenants in time of need.