CARES Act Provisions for Homeowners & Renters in Hawaii

The United States Senator Brian Schatz’ website recently announced details regarding government assistance for Hawaii renters and homeowners. According to its most recent update, dated April 4, 2020, the U.S. Congress has established several types of relief available to Hawaii residents facing economic and housing pressures due to the novel coronavirus (COVID-19).

The programs are designed to help with residents’ financial needs. They fall into three categories:

1. Income Relief
2. Assistance for Homeowners
3. Assistance for Renters

1. Income Relief Programs

The federal government’s income relief programs include direct payments, unemployment benefits, support for small businesses, and finally, tax relief. Some highlights:

• The U.S. Congress has extended eligibility for unemployment benefits and increased the amounts people can receive.
• Small business loans are being made available to small businesses to help cover payroll and operating expenses. These may also apply to independent contractors, sole proprietors, or self-employed individuals.
• The federal government has postponed the deadline to file and pay 2020 taxes.

2. Assistance for Homeowners

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides relief for homeowners with government-guaranteed mortgages. Some highlights:

• Mortgages backed by FHA, USDA, VA, HUD Sec 184, Fannie Mae, or Freddie Mac are eligible for interest and penalty-free forbearance for at least 6 months and up to one year. Payments will be put on pause for the period of eligibility.
• A foreclosure eviction moratorium is in effect until May 17, 2020.

3. Assistance for Renters

The CARES Act also has provisions for renters. Some highlights:

• A moratorium on evictions from March 27, 2020, through July 25, 2020, for tenants renting from a homeowner who has a federally-backed mortgage or federally-supported multi-family property.
• Landlords of eligible properties are prohibited from filing for eviction or charging any fees for unpaid rent and fees during the moratorium and must issue a notice to tenants to vacate 30 days before an eviction once the moratorium ends.