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The historic $2 trillion stimulus package has passed the House of Representatives this morning by voice vote, after being approved by the Senate in a unanimous 96-0 vote on Wednesday. The next step for the 880-page rescue bill is to reach President Donald Trump’s desk.
The bill includes the Coronavirus Aid, Relief and Economic Security Act, which outlines terms of assistance for the real estate industry. Mortgage payment forbearance, as well stopping evictions and foreclosures on properties with federally backed loans, are among the focal points. This is largely in line with a previous HUD announcement, urging authorities to suspend foreclosures and evictions within public housing properties.
Multifamily owners that were on time on their mortgage payments as of February 1, but are now facing financial hardships due to the COVID-19 crisis, can seek temporary forbearance by submitting requests to their lenders.
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According to the new legislation, individuals and families will be eligible for direct payments as part of a $250 billion program. Additionally, the Department of Education can suspend student loan payments without penalty through September 30, CNN reported. Unemployment insurance benefits have also been expanded—the federal government can give jobless workers an extra $600 per week for four months, on top of their state benefits. Independent contractors and those with temporary jobs are also eligible to receive federal aid.
Jobless claims spike
The stimulus package includes specific measures to address soaring jobless claims, which skyrocketed to a record of almost 3.3 million last week. Figures from the U.S. Department of Labor show losses were heavily concentrated in services, particularly accommodation and food services. According to NBC News, the previous recorded high came in October 1982, when 695,000 people filed for benefits. In the coming weeks, analysts expect figures to soar further, as job cuts and bankruptcies continue, Politico reported.
As of Friday morning, the total number of confirmed coronavirus infections in the U.S. topped 85,000, according to data compiled by Johns Hopkins University. The U.S. had the largest numbers of cases across the globe, having surpassed China, Italy and Spain.
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