Temporary Forbearance of NRP Loan Payments
On March 30, in response to the COVID-19 national emergency, the City’s Finance Officer authorized a temporary forbearance related to most City-issued loans. You can read the two-page report here.
This directive allows borrowers of most NRP home improvement loans to stop making payments for six months – a period that could be extended to up to one year. The loan’s interest rate during this time will be 0%, and the repayment period will simply be extended. Borrowers who wish to continue making payments will have their entire payment applied to the loan’s principal and any required escrow payments. The directive applies only to loans where borrowers are making monthly payments – and not to deferred / “forgivable” loans. Borrowers are being notified by the organizations that service their specific loan.
One result of this directive is that neighborhood organizations will likely see a delay in program income from loan repayments being credited to your NRP and CPP plans. We hope that this action provides some temporary relief and breathing room for your residents who are financially affected by this crisis.