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May 8, 2020 REAL ESTATE ROUNDUP

CHFA streamlines forbearance for multifamily borrowers

PHOTO | Contributed CHFA CEO Natarajan can temporarily grant up to 90 days of forbearance for multifamily borrowers.

As a result of the COVID-19 pandemic, the Connecticut Housing Finance Authority (CHFA) anticipates that some multifamily borrowers may experience financial hardship beyond their control, as some renters may not be making rent payments due to their own coronavirus-related financial hardships.

To allow for expedited relief to multifamily borrowers, CHFA’s board of directors has granted Chief Executive Officer Nandini Natarajan temporary authority to approve forbearance agreements of up to 90 days for multifamily borrowers. Under normal circumstances, the board must approve mortgagor requests for loan modification or forbearance, a process that itself can take 30 days or more.

“The board felt it was important for CHFA to be able to respond to borrowers’ COVID-19 forbearance requests immediately,” said Seila Mosquera-Bruno, commissioner of the state’s Department of Housing and chair of CHFA’s board. “In this difficult business climate, providing temporary financial relief is critical to keep the economy moving.”

“CHFA multifamily borrowers who are experiencing financial hardship should submit a written request for a 30-day forbearance period,” explained Natarajan. “Borrowers who are current and in compliance with their regulatory obligations will be approved.”

“CHFA will require a detailed application review after the initial approval and borrowers may request up to two more 30-day forbearance periods,” Natarajan added. To provide additional relief, CHFA will waive processing fees for such applications.

CHFA, a quasi-public agency, has been working with its borrowers, lenders and partners on issues relating to affordable housing since the COVID-19 pandemic began in March. CHFA reached out to its home mortgage customers immediately, alerting them to forbearance and loan-modification options, as well as the suspension of foreclosure proceedings.

CHFA is in contact with lenders on changes to federal mortgage programs and compliance issues. Property owners and managers have been notified of protections for renters as well as how to comply with changes in requirements.

Information and resources on housing related COVID-19 issues are posted on CHFA’s website which is updated regularly.

TRANSACTIONS

A 1,700-square-foot commercial condominium at 185 Broad Street, Unit D, Milford has been sold for $215,000. The unit is in a mixed-use building on a 0.65-acre parcel. The sellers, Donald Jr. and Beverly Anderson, were represented by John Bergin of H. Pearce Commercial. The buyer was represented by Fred Messore, senior vice president of Colonial Properties in Milford.

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Mike Richetelli, president of Colonial Properties, represented landlord Leo Zygelman in the leasing of a 1,200-square-foot office suite at 370 Boston Post Road, Orange. The office space was leased for a five-year term to naturopathic physician Michelle Hessberger of Your Natural Dr LLC. Hessberger was represented by Tony Vitti, also of Colonial Properties.

 

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