The Biden regime was supposed to fork out about $47 billion in rent relief to cover landlords’ losses, however, a slow rollout has plunged many “mom and pop” landlords into insolvency. Consequently, many of them have had to sell their land holdings to wealthy investors.
Showing no concern whatsoever for middle-class white landlords, Bloomberg focused not on the fact that ordinary Americans of all skin colors are suffering due to the CDC’s rent moratorium. Instead, the fake news outlet chose to focus on the plight of “minority” landlords only.
“Like their tenants, these landlords are more likely to be nonwhite or to be immigrants using real estate for their economic foothold,” Bloomberg lamented, paying no regard to suffering white landlords.
“Now, mortgage, maintenance and tax bills are piling up, putting landlords in danger of losing their buildings or being forced to sell to wealthier investors hunting for distressed deals.”
China Joe, meanwhile, has failed to get struggling landlords the help they need. If the CDC is going to be allowed to play the role of America’s landlord by prohibiting evictions due to the Wuhan coronavirus (Covid-19), then the regime owes it to these landlords to protect their assets.
“The fact that we’re over a year into the pandemic really puts a lot of these landlords at risk,” says Rick Sharga, executive vice president of RealtyTrac. “It doesn’t take much to fall behind if income stops coming from one tenant in a small building. With each passing month, the problems get bigger and harder to solve.”
No matter what happens next, the situation is going to be tumultuous. Renters and landlords are being encouraged to try to work things out in such a way as to avoid landlords getting stuck holding the bag.
Many landlords do not even qualify for federal Chinese virus mortgage forbearance because less than one-third of them have mortgages backed by Fannie Mae, Freddie Mac, or another federal agency. Many local governments are also unable to let landlords pause their property taxes because they, too, have suffered due to restrictions put in place for the Wuhan flu.
“The long-term concern here, over the course of a few years, is that a growing share of mom and pop landlords will be forced to sell and rents will go up,” suggests a Rutgers University assistant professor of sociology who researches housing inequality. “There’s a lot of private equity interest and a real possibility of growing consolidation.”
To make matters worse, Congress allocated landlord relief payments in such a way as to prioritize smaller states with low renter populations. Meanwhile, bigger states where the situation is much more dire will see fewer relief dollars, leaving them to suffer the consequences.
In New York, for instance, the $2.4 billion that was allocated there will only cover less than 80 percent of back rent, utilities and late fees owed as of March. In Illinois, only 45 percent of the same will be covered by that state’s allocation.
In Vermont, meanwhile, where there are very few renters, the $350 million allocated by Hunter’s dad to cover back rent, utilities and late fees is more than nine times what the state actually needs.
“Bad time to be a landlord,” wrote one commenter at Zero Hedge.
“Bad time to be an American,” responded another.
More related news stories about the disastrous economic fallout triggered by the government’s response to the Wuhan coronavirus (Covid-19) can be found at Collapse.news.
Sources for this article include: