Iowa Gov. Kim Reynolds announced that home foreclosure and rent evictions moratoriums will not be extended, according to the Quad City Times.
The Governor, instead, said a program will be established to provide financial assistance to borrowers in Iowa who have lost income or faced foreclosure eviction.
Reynolds, according to the Quad City Times, had temporarily suspended foreclosures and rental evictions as a part of her administration’s responses to COVID-19.
This was done to offset the closures of Iowa businesses, which caused unemployment levels to spike to record highs. This order expired on Wednesday.
The report states the proposed program will be funded by federal money designed for pandemic response efforts by the Iowa Finance Authority—a state agency that operates housing assistance programs.
Reynolds said she plans for the program to be operational by the end of the week.
“We’ll take a look at the numbers and take a look at who qualifies, then we’ll set aside the appropriate amount of funding to meet the needs of Iowans during this really difficult time,” Reynolds said. “We’re just changing the parameters in which we’re providing the assurance that individuals aren’t thrown out of their homes in these really difficult times.”
The Federal Housing Finance Agency (FHFA) announced in May that foreclosure and eviction moratoriums for loans backed by Fannie Mae and Freddie Mac have been extended to June 30. Deadlines were set to expire on May 17.
“During this national health emergency, no one should be forced from their home," said FHFA Director Dr. Mark A. Calabria. “Extending the foreclosure and eviction moratoriums protects homeowners and renters with an Enterprise-backed mortgage and provides certainty for families.”
The FHA announced that it would halt all new foreclosure actions and suspend all foreclosure actions currently in process, excluding legally vacant or abandoned properties. Also, the Administration will cease all evictions of persons from FHA-insured Single Family properties, excluding actions to evict occupants of legally vacant or abandoned properties.
“We made it clear at the beginning of this pandemic that no American should have to worry about losing their home amidst a crisis. Today’s announcement ensures that commitment,” said U.S. Department of Housing and Urban Development (HUD) Secretary Dr. Benjamin Carson. “While we have made great strides in fighting this virus, the fact remains that many Americans are still struggling as we work diligently to get our economy back on sound footing, which I have full confidence we will do through the leadership of the President."