For Immediate Release: May 5, 2020
Contact: Luz Martinez, Communications Director: (202) 262-8998; firstname.lastname@example.org
Councilmember Nadeau Introduces Foreclosure Moratorium To Protect Homeowners and Prevent Displacement
WASHINGTON, DC - Today, in an effort to pause foreclosures during the ongoing public health emergency and for 60 days after, Councilmember Brianne Nadeau introduced the Foreclosure Moratorium Emergency Amendment Act of 2020. The emergency legislation was passed unanimously by the full Council.
The mortgage relief previously passed by Council was not applicable to all homeowners, and the foreclosure moratorium included in the federal legislation Coronavirus Aid, Relief, and Economic Security (CARES) Act only applies to homeowners with federally backed mortgages. The legislation introduced by Councilmember Nadeau closes the existing gaps by providing explicit and clear language to broaden the protections to all homeowners. By enacting this measure, the District joins 15 other states that have passed similar protections.
“Housing stability is essential to the overall stability of our residents and the entire District of Columbia, said Nadeau. “We cannot abandon hard-working homeowners during this time of uncertainty, and we should not turn back the clock on the countless initiatives and programs the District has implemented to encourage homeownership, prevent displacement and create opportunities for housing equity.” By allowing homeowners an extended amount of time to take action after the stay-at-home order ends, the legislation safeguards homeowners from immediate foreclosure once the emergency ends, lowers the susceptibility of vulnerable homeowners turning to foreclosure rescue scams, and gives homeowners the option of a voluntary sale to recoup equity that would otherwise be lost through the likely depressed prices of a forced auction.
The legislation is co-introduced by Councilmember Anita Bonds, Chair of the Committee on Housing and Neighborhood Revitalization, and committee members, At-Large Councilmember Elissa Silverman, At-Large Councilmember Robert White, and Ward 8 Councilmember Trayon White, Sr.
Councilmember Nadeau worked in partnership with the Legal Aid Society of DC on this measure.
The Foreclosure Moratorium Emergency Amendment Act of 2020 will take effect immediately, bringing the District in line with other proactive jurisdictions.