Ilhan Omar has reintroduced a bill that will forgive and cancel all rent and mortgage payments from coast to coast because of the pandemic. The bill would also create a fund that would fully reimburse landlords for the money they will never collect.
Just think how totally impossible what she is proposing is. How much money would need to be set aside to cover landlord losses?
Add up the number of people who pay rent or a mortgage and then figure out what 12 months worth of rent and mortgages would be. Just how much money would that amount to? The number must be staggering.
There is no place to go for the exact numbers but it is easy for us to comprehend that the government could not possibly put together a fund large enough to reimburse everyone.
Currently, all of the back rent you owe must be paid but under Omar’s plan, you owe nothing, and credit reporting agencies cannot hit your credit score for the delinquent payments.
The government cannot force you to forgive the money that’s owed to you because the 5th Amendment includes a clause that says when the federal government seizes private property they must pay the owner a fair price for what they took.
Ayanna Pressley said:
“With the economic impact of this pandemic worsening and the threat of eviction and homelessness looming large for families nationwide, we must take every measure possible to keep families safely housed, forgive all rental debt, and ensure that the credit scores of hard hit families are not forever tarnished.”
Additionally, the legislation establishes a “Landlord Relief Fund,” overseen by the Department of Housing and Urban Development to reimburse landlords for the loss of rent payments.
According to a press release, Omar also wishes to:
…create an optional buyout fund to fully finance the purchase of private rental properties by non-profits, public housing authorities, cooperatives, community land trusts, and states or local governments—in order to increase the availability of affordable housing during this downturn.
“While the American Rescue Plan extends the national rent moratorium—this is not a long-term solution. People across this country will be forced to pay tens of thousands of dollars in back rent when it ends,” Omar said.