Congressional leaders have reached a deal to authorize a $900 billion COVID-19 targeted relief package. The legislation authorizes a new round of economic stimulus payments to most households and extends enhanced unemployment benefits related to the pandemic into 2021.

Paycheck Protection Program LoansExtended Eligibility to Include Housing Cooperatives
It appears condominium associations and homeowners associations organized as nonprofit corporations are not eligible for the Paycheck Protection Program (PPP) loans/grants.  Condos and HOAs that have a unique IRS tax determination (501c3 or 501c6) may be eligible, but the majority remain ineligible. CAI is pleased that housing cooperatives have become eligible for the PPP program.

Critical for CAI business partners, management companies, and CAI chapters, the legislation renews the Paycheck Protection Program (PPP) through March 31, 2021, extending forgivable loans to businesses for payroll and operational costs. Expenses newly designated as forgivable include supplier costs for existing contracts and purchase orders, costs for personal protective equipment and those to adapt spaces for social distancing, and technology services that support business operations like payroll and inventory management.

Severely distressed small businesses that received a PPP loan earlier in 2020 will be allowed to apply for a second PPP loan. To receive a second PPP loan, a business must have no more than 300 employees, has (or will have) used all proceeds from the prior PPP loan, and show a minimum 25% reduction in gross revenues between comparable quarters in 2019 and 2020.  Second PPP loans have a maximum amount of 2.5 times average monthly payroll costs in the prior year, up to $2 million. Borrowers may elect a period between 8- and 24-weeks post-loan origination that will serve as the covered forgiveness period.

The legislation excludes PPP loan amounts from a borrower’s taxable gross income. This tax treatment also is extended to Economic Injury Disaster Loan Grants. Additionally, businesses may deduct expenses funded through forgiven PPP loans.

Click here to access CAI’s updated guide for members on PPP.

Economic Injury Disaster Loans (EIDL)
Additional funding is available to community associations, including condominiums, homeowners associations, and housing cooperatives along with other small for-profit businesses.  The EIDL loan program is a low-interest loan program that can help communities and small businesses that have suffered economic injury due to the pandemic.

Click here to access CAI’s updated guide for members on EIDL.

Families First Coronavirus Response Act Tax Credits for Paid Sick & Family Leave
The Families First Coronavirus Response Act required companies with 500 or fewer employees to provide 12 weeks of partially paid public health emergency leave to care for children under age 18 and sick leave to care for other family members affected by COVID-19. Congress is extending the tax credits available to employers to finance employee paid leave through March 31, 2021.

Rental Housing Assistance Fund & Eviction Moratorium Extension
Rental housing is prioritized in the relief package, making $25 billion in rent relief available to low-income households experiencing unemployment. Payments may be directed to past due rent, utilities, and other property charges. As of December 7, 18% of renters are behind at least one month on rent and 14% of renters report they will be unable to make their next rental payment, according to the U.S. Census Bureau.

The rental assistance program also will provide vital relief to small landlords leasing a condominium unit or home in a community association that have received no rent payments for months. Finally, the agreement extends the federal government’s ban on evictions through January 31, 2021.

In addition to this legislation, it is important to remember that there is a moratorium on foreclosures for all federally backed and insured mortgages through Fannie Mae, Freddie Mac, and HUD’s Federal Housing Administration (FHA).  The Fannie Mae/Freddie Mac mortgage foreclosure moratorium extends through January 31, 2021, and HUDs FHA foreclosure moratorium extends through February 28, 2021.

CAI has extended the community association moratorium on foreclosures actions through January 31, 2021.  

For more details on this targeted relief package and other COVID-related government actions impacting community associations, click here.

C. Scott Canady

C. Scott Canady

Scott Canady's 13 year record of public service includes experience gained in the U.S. House of Representatives and in the U.S. Department of Housing and Urban Development.

In Congress, Scott served as chief policy and political aide to a senior member of the House Financial Services Committee, working to reform the National Flood Insurance Program and improve the regulation of housing finance giants Fannie Mae and Freddie Mac.

Following his time in the Congress, Scott was appointed Deputy Assistant Secretary for Legislative Affairs at the U.S. Department of Housing and Urban Development. Scott served as a key legislative liaison with members of the House Financial Services Committee and the Senate Banking Committee.

In 2009, Scott began his partnership with Community Associations Institute by launching Tambala Strategy. Through this partnership, Scott has worked with CAI's members and leadership team to advance the views of common interest communities on a variety of issues including federal condominium standards, federal disaster assistance for community associations, and community association lien priority.

Scott is a graduate of Louisiana State University where he earned a Bachelor of Arts in Political Science and History.

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