RISMedia's Real Estate Magazine

MAR 2019

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

Issue link: http://remag.rismedia.com/i/1086125

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Page 30 of 126

26 March 2019 RISMedia's REAL ESTATE Regardless of what the future holds, many government agencies have been affected, causing federal em - ployees to either be furloughed or work without pay. In addition, na - tional 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 • More than 800,000 federal em- ployees were affected by the shut- down. Over 420,000 were required to work without pay (e.g., prison guards, TSA employees, border pa - trol, etc.) and more than 380,000 workers were furloughed. • Almost $200 million in small busi - ness loans were blocked each day as the Small Business Administra - tion (SBA) halted its loan program. • The U.S. Department of Housing and Urban Development (HUD) only had a few essential workers to oversee public housing while making voucher payments for low-income families. Ninety-five percent of HUD employees were furloughed. • Over 1,000 affordable housing contracts expired since the shut - down, representing 5 percent of project-based rental assistance, which subsidizes rent and utilities for 1.2 million low-income families. As federal workers went 35 days furloughed or working without pay, they missed paychecks that they relied on to pay for their food, rent and other bills. When the shutdown temporarily ended, President Trump signed a bill guaranteeing back pay for the hundreds of thousands of federal employees who were fur - loughed. However, another shutdown will cause these employees to miss more paychecks. When these workers are unable to pay their rent, this affects their land - lords who depend on rent payments, and they might face eviction. At the same time, homeowners risk foreclo - sure when they miss their mortgage payments. Democrats introduced legislation titled the "Federal Employee Civil Relief Act" that would protect work - ers and their families from foreclo- sures, 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 work - ers from having their car or property repossessed, falling behind on bills and student loan payments, and losing their insurance due to miss - ing premiums. Small businesses also suffered from the shutdown as the SBA halt - ed its 7(a) loan program for working capital and 504 loans for commer - cial 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 busi - nesses that were not being distrib- uted each day. Professionals in the housing in - dustry should know how these ef- fects will likely affect them and their clients today and after the end of any subsequent shutdown. RE 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 chair- woman of NAWRB's Diversity & Inclusion Leadership Council (NDILC). With 30 years of experience in hous- ing, Patno is a champion for women's economic growth and independence. In 2017, Entrepreneur.com named her the Highest-Ranking Woman and 4 th Overall Top Real Estate Influencer to Follow. For more information, please visit www.nawrb.com. Housing Ecosystem Hit by Historic Government Shutdown Commentary by Desirée Patno A t 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.

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