Bill Summary for S 728 (2019-2020)

Summary date: 

May 13 2020

Bill Information:

View NCGA Bill Details2019-2020 Session
Senate Bill 728 (Public) Filed Wednesday, May 13, 2020
AN ACT TO ESTABLISH A LOAN PROGRAM WITH THE NORTH CAROLINA HOUSING FINANCE AGENCY TO ASSIST CERTAIN SMALL-SCALE LANDLORDS DUE TO THE COVID-19 EMERGENCY.
Intro. by Murdock, Waddell, Nickel.

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Bill summary

Directs the NC Housing Finance Agency (Agency) to provide loans to eligible landlords experiencing economic hardship caused by the COVID-19 pandemic. Defines eligible landlord to mean a landlord of residential property who has no more than 25 existing tenants residing in property situated in the State and who relies on rents received from rental properties as the landlord's primary source of income. Details limitations and requirements of the loans, including that the loans have a 0% interest rate; capping the term and amount of loans at 66 months and $5,000 per eligible landlord; limiting application to one individual per household (though spouses can be listed together); requiring repayment upon the occurrence of a triggering event (defined to include the expiration of the State of Emergency period, breach of the loan agreement, notice of housing code or rental property ordinance violations, and failure to keep the premises in a fit and habitable condition); and prioritizing landlords with current tenants who are displaced students or individuals unable to pay rent as a result of the COVID-19 pandemic. 

Appropriates $3 million in nonrecurring funds from the General Fund to the Agency for the 2019-20 fiscal year for the loan program. Requires the Agency to exhaust any federal funds received for the same purpose before using any State funds.

Requires the Agency to submit a quarterly report to the specified NCGA committee on the number of loan applicants, loans issued, loan amounts, location of loans, loan repayment, and defaulted loans, loans with triggering events, and recapture.

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