Rep. Ihan Omar (D-Minn.) introduced a bill last week calling for the cancellation of rent and mortgage payments through the end of the coronavirus pandemic.
"The bill would constitute a full payment forgiveness, with no accumulation of debt for renters or homeowners and no negative impact on their credit rating or rental history," according to a press release.
The legislation will establish a relief fund for landlords and mortgage holders to cover losses from the cancelled payments and create an optional fund to fully finance the purchase of private rental properties by non-profits, public housing authorities, cooperatives, community land trusts, and states or local governments—in order to increase the availability of affordable housing during this downturn," the press release added.
The Rent and Mortgage Cancellation Act also calls for any rent already paid to be reimbursed to the tenant.
The measure also calls for the renters not to be penalized by credit agencies for not paying rent.