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Proposed bill would cancel all rent, mortgage payments during COVID-19 pandemic

Posted at 12:39 PM, Apr 20, 2020
and last updated 2020-04-20 12:39:49-04

A U.S. representative in Minnesota has proposed a bill that would cancel all rent and mortgage payments through the rest of the coronavirus outbreak.

According to Democratic Rep. Ilhan Omar's office, the bill would constitute full payment forgiveness, with no accumulation of a debt for renters or homeowners and no negative impact on their credit rating or rental history.

The "Rent and Mortgage Cancellation Act of 2020" would also establish a landlord relief fund. The fund would be to cover losses from the canceled payments and "create an optional fund to fully finance the purchase of private rental properties."

“The coronavirus crisis is more than just a public health crisis—it’s an economic crisis. Minnesotans are losing jobs, getting their hours reduced, and struggling just to put food on the table. We must take major action to protect the health and economic security of the most vulnerable, including the millions of Americans currently at risk of housing instability and homelessness,” said Rep. Omar. “Congress has a responsibility to step in to stabilize both local communities and the housing market during this time of uncertainty and crisis. In 2008, we bailed out Wall Street. This time, it’s time to bail out the American people who are suffering.”

Under the act, the property owner cannot refuse rent or discriminate based on the income of such household.

To read the full proposed bill, visit Rep. Omar's website.