Stockton Williams: What Happens when the Payment Comes Due?

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Stockton Williams is Executive Director of National Council of State Housing Finance Agencies. Their staff have been teleworking to serve the HFAs who are considered essential business members, State Housing Finance Agencies who are active in single family and rental housing. There are aspects of housing finance that affect developers, mortagers, and others to get an affordable housing buyer financed. In almost every state, the pipeline has continued except in some smaller states. The homebuying and homebuilding, including multifamily, early on, is still thriving. There are warning signs which may affect them in the future.

He feels the unemployment statistics of those people out of jobs and other low-income families will face enomous economic challenges in the months ahead. The stimulus packages will not last forever, and as we get into summer and fall, they expect a jump in deliquencies and foreclosures. He also anticipates a stress on renters who are temporarily protected but when the forebearance period ends, all the rent will become due.

Stockton and Nan discussed the impact of the coronavirus pandemic on the already-long waiting lists for assisted housing. When the economic pain increases, it will become critical. We are already having a hard time producing multifamily apartments and rents now are high in many localities. However, rental owners may have a problem finding tenants who can pay the higher rents as the economic aspects of the pandemic continue.