Timely Rent Impacts Possible If Federal Debt Ceiling isn't Increased by June 1
Dear Multifamily NW members,
Our leadership is closely monitoring the negotiations between the White House and House Republicans regarding the debt ceiling increase. We understand that the uncertainty is likely causing many of our members to think about potential consequences if negotiations should fall through.
As I am sure you are aware, if a deal is not reached, this could lead to delays in government assistance payments for many of your renters, including social security and disability checks. The Treasury Department has indicated that a default could happen as soon as June 1.
As an association that represents residential property managers, we understand the importance of paying rent on time. However, if government assistance payments are delayed due to a potential or actual shutdown, many tenants could experience financial hardships that may impact their ability to pay rent.
Given this possibility, we want apartment managers to be aware of this situation and to consider being flexible with renters who may experience difficulties paying their rent due to delays in government assistance. By working together, we can find solutions that will ensure that our community continues to thrive and that all our neighbors are able to remain in their homes.
In order to be prepared for this chaotic situation, we ask that you consider sending a letter (see below) to your renters, informing them on how to proceed if they are impacted by this. This letter has been drafted by our legal counsel.
We will continue to monitor this circumstance and update you accordingly. Thank you for your understanding during this challenging time!
As you may be aware, there is some uncertainty whether the federal debt limit will be increased. If it is not raised, our residents who directly rely upon their wages, benefits, or assistance from the federal government may experience delayed payments that are necessary for rent. If you are unable to pay your rent because of delayed payments related to the debt ceiling negotiations, please reach out to the office as soon as possible. We will offer repayment plans and do our best to help our affected residents during this challenging time.