The bill extends temporary relief from Troubled Debt Restructuring under the CARES Act for an additional year, to January 1, 2022.
Finally, Congress has passed another stimulus measure, a $900 billion bill that includes several provisions beneficial to commercial real estate and, of course, the larger US economy.
CRE Finance Council has provided members with a rundown on the basics contained in the 5,593-page bill, which the White House has said President Trump will sign.
Here are the provisions that matter most to CRE, according to CREFC.
Troubled Debt Restructuring Relief Extended. CREFC has been advocating for months to extend the CARES Act’s temporary suspension of generally accepted accounting principles requirements for the Troubled Debt Restructuring classifications on loans so that banks and life insurance companies can continue to work with their CRE borrowers.
Sec. 5402 extends temporary relief from TDRs under the CARES Act for an additional year, to January 1, 2022. The legislation also clarifies that insurance companies are included in this relief. This is a major win for CREFC members, the organization says.
Rental Assistance. Sec. 5201(b) sets up a $25 billion rental assistance program to be distributed by state and local governments with populations of 200,000 or more. Each state shall receive no less than $200 million. Funds may be used for direct financial assistance, including current and past-due rent, utilities and home energy costs, utilities and home energy costs. Eligible households may receive up to 12 months of assistance, plus an additional three months if necessary. The relief is targeted to households that are at or below 50% of the area median income, or where one or more members of the household has been unemployed for 90 days or longer. Landlords may apply on behalf of tenants or tenants may apply directly for this assistance.
Eviction Moratorium. Sec. 5202 extends the rental eviction moratorium issued by the Centers for Disease Control and Prevention through January 31, 2021.
CECL Relief. Sec. 5401 extends temporary relief to financial institutions from complying with Current Expedited Credit Loss (CECL) accounting standard through January 1, 2022.
This update was originally written and published by By Erika Morphy | December 22, 2020 at 07:56 AM on Globest.com