Housing Ecosystem Hit by Historic Government ShutdownCommentary by Desirée Patno
At the time of this writing, the longest government shutdown in U.S. history ended after 35 days, lasting from Dec. 22, 2018 to Jan. 25, 2019. While the shutdown has ended, there's always the potential for another as political unrest remains.
Regardless of what the future holds, many government agencies have been affected, causing federal employees to either be furloughed or work without pay. In addition, national parks were forced to close, and affordable housing funding has come to a halt, among other effects that will continue to be felt during the course of the year. Government Shutdown Impact
When these workers are unable to pay their rent, this affects their landlords who depend on rent payments, and they might face eviction. At the same time, homeowners risk foreclosure when they miss their mortgage payments. Democrats introduced legislation titled the "Federal Employee Civil Relief Act" that would protect workers and their families from foreclosures, evictions and loan defaults during the course of the government shutdown and for 30 days following. While still in the introduction phase, if passed, it will also protect workers from having their car or property repossessed, falling behind on bills and student loan payments, and losing their insurance due to missing premiums. Small businesses also suffered from the shutdown as the SBA halted its 7(a) loan program for working capital and 504 loans for commercial properties—capital that these businesses rely on to operate and pay their employees—during the course of the shutdown. As the SBA manages nearly 200 7(a) loans and 120 SBA 504 loans per day, this amounted to $200 million worth of loans for small and mid-size businesses that were not being distributed each day. Professionals in the housing industry should know how these effects will likely affect them and their clients today and after the end of any subsequent shutdown. Desirée Patno is the CEO and president of Women in the Housing and Real Estate Ecosystem (NAWRB) and Desirée Patno Enterprises, Inc. (DPE), as well as chairwoman of NAWRB's Diversity & Inclusion Leadership Council (NDILC). With 30 years of experience in housing, Patno is a champion for women's economic growth and independence. In 2017, Entrepreneur.com named her the Highest-Ranking Woman and 4th Overall Top Real Estate Influencer to Follow. For more information, please visit www.nawrb.com. |
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