The Los Angeles Housing Department (LAHD) recognizes the COVID-19 pandemic as an unprecedented threat to the affordable housing that serves lower-income  residents of the City. During this crisis and beyond, it is essential that we keep lower-income residents  stably housed while supporting the long-term financial health of our affordable housing communities.  In response to the hardship, LAHD created a COVID-19 Forbearance policy in April 2020 to assist  borrowers experiencing financial hardship due to loss of rental income. 

LAHD recognizes that property owners have implemented safety protocols compliant with the Centers for Disease Control and Prevention’s safety guidelines and launched COVID-related emergency programs. These new procedures have increased operating expenses for property owners. To support affordable housing properties and borrowers, LAHD has amended its COVID-19 Forbearance policy. For expenses explicitly defined in each property’s City loan agreement, LAHD will continue its practice of deducting those expenses in the residual receipts analysis. For COVID-19 emergency expenses not explicitly defined in each property’s City loan agreement, LAHD will consider classifying these as “reasonable” and “customary” expenses and deduct them in the residual receipts analysis. LAHD may request submission of service contracts and invoices to verify COVID-19 emergency expenses.

This addendum to the COVID-19 Forbearance policy will apply to all 2020 RRAs and remain in effect until the pandemic has subsided.

For more information, please contact (213) 809-8939 or hcidla.assetmgmt.covid19@lacity.org.