Highlights of the CARES Act Affecting the Real Estate Industry
March 30, 2020
On Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law.
The CARES Act provides economic stimulus and economic, tax and regulatory relief for both businesses and individuals. Key among those provisions are relief for investors and consumers in the real estate industry, including:
- a temporary moratorium on foreclosures and evictions for certain commercial and residential properties receiving federal assistance;
- a right to request a forbearance in connection with certain federally backed single-family and multifamily mortgage loans;
- potential aid to the hotel and restaurant industries in the form of direct loans and through Small Business Administration loan programs; and
- potential tax benefits for property owners.
On March 28, 2020, Cleary Gottlieb published an alert memorandum summarizing and providing our observations on the key CARES Act provisions providing assistance to businesses and supporting financial stabilization, the full text of which can be found here.
In this alert, we identify some of the key provisions of the CARES Act that may be relevant to the real estate industry. Please click here for the full alert memorandum.