Some lawmakers want to cancel rent and mortgage payments for all Americans during the coronavirus pandemic.
Rep. Ilhan Omar, D-Minn., introduced legislation Friday that would cancel rent and mortgage payments for all residents regardless of income or employment status. It also would create a fund for landlords and mortgage holders to cover losses from the canceled payments, Fox News reports.
The Rent and Mortgage Cancellation Act received support from Democrat Reps. Alexandria Ocasio-Cortez of New York, Rashida Tlaib of Michigan and Ayanna Pressley of Massachusetts.
“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,” Omar said in a statement. “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.”
The bill would be a full payment forgiveness plan, with no accumulation of debt for renters or homeowners and no negative impact on their credit ratings or rental histories, Omar said.
It also would create an optional fund to finance the purchase of private rental properties by non-profits, public housing authorities, cooperatives, community land trusts and states or local governments in order to make affordable housing available.
“Congress has a responsibility to step in to stabilize both local communities and the housing market during this time of uncertainty and crisis,” she said. “In 2008, we bailed out Wall Street. This time, it’s time to bail out the American people who are suffering.”
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