Minnesota Rep. Ilhan Omar unveiled a new bill on Friday that seeks to "institute a nationwide cancellation of rents and home mortgage payments through the duration of the coronavirus pandemic."

The bill is called the Rent and Mortgage Cancellation Act, and it is designed to help the millions of people who are in dire straits financially because of the coronavirus pandemic, which in just four weeks has shattered the economy.

In a statement on her website and in a longer document, Omar explained that the act includes full payment forgiveness, with no accumulation of debt for renters or homeowners and no negative impact on people's credit rating or rental history. It will also help out landlords and mortgage holders by creating a relief fund that will cover any financial losses that come from the canceled payments.

One of the more controversial aspects of the bill involves a program that would see the federal government give money to nonprofit groups, public housing authorities, cooperatives, community land trusts and states or local governments so that they can purchase private rental properties from landlords.

“The coronavirus crisis is more than just a public health crisis—it’s an economic crisis. Minnesotans are losing jobs, getting their hours reduced, and struggling just to put food on the table. We must take major action to protect the health and economic security of the most vulnerable, including the millions of Americans currently at risk of housing instability and homelessness,” Omar said in a press release.

“Congress has a responsibility to step in to stabilize both local communities and the housing market during this time of uncertainty and crisis. In 2008, we bailed out Wall Street. This time, it’s time to bail out the American people who are suffering,” she added.

The bill was backed by many progressive groups across the country and has been co-sponsored by Reps. Ayanna Pressley, Alexandria Ocasio-Cortez, Rashida Tlaib, Pramila Jayapal, Veronica Escobar, Jesús García, Mark Pocan and Grace Meng.

Omar held a virtual press conference to announce the bill through her Facebook page, explaining many of the provisions inside of it.

As reported by Bloomberg, unemployment numbers released by the federal government on Thursday show that almost all of the economic progress made since the financial crash in 2008 and 2009 has been wiped away by efforts to contain the virus. 

According to The Guardian,  31% of American renters could not pay rent for the month of April. Economic experts have said the situation will only get worse as more people are furloughed or fired and millions spend more weeks without employment.

"The Rent and Mortgage Cancellation act offers the only solution that can meet the scale and depth of our immediate needs related to housing, and establish a new framework for longterm recovery. Congress must act to suspend rents and mortgages, and to prevent a 2008-style disastrous real estate bonanza," said Tara Raghuveer, homes guarantee campaign director at People's Action.

Dianne Enriquez, co-director of community dignity campaigns at the Center for Popular Democracy, added in a statement on Omar's website that millions of tenants could not pay their rent on April 1. There are many families who have already been evicted because of it, ProPublica reported, and rent payments are coming up again in a short time. 

Dozens of states and cities have expressed interest in implementing a ban or moratorium on evictions until the crisis is over, and the CARES Act, passed on March 27, includes a moratorium on eviction filings for all federally backed rental units nationwide until the middle of May. But landlords have already flouted that rule, as reported by ProPublica, and millions have said their landlords are being less than forgiving about the crisis.

“With no clear end to this crisis in sight, it is impossible for families to prepare for the economic fallout that will come if we are expected to continue to pay rent while we are unable to earn income. Representative Omar’s bill to cancel rent and mortgages for the duration of the housing crisis would mean that the millions of families across the country who have lost their jobs are able to stay in their homes and not go into crushing debt during this crisis. Cancelling rent and mortgages also ensures that undocumented people who were locked out of federal relief have a level of reprieve. Relief cannot wait. We need Congress to pass this bill by April 30th,” Enriquez said.

There is already talk in cities like New York and Philadelphia of a rent strike on May 1 that has faced widespread opposition from local governments and landlords. 

Pressley added that housing is an integral part of keeping people healthy during the coronavirus pandemic, and if people are forced into the streets they will be more likely to contract COVID-19. She said "bold, urgent action" is needed to meet the needs of families struggling to survive during an unprecedented time like this. 

“By cancelling rent and mortgage payments for the duration of this public health emergency, the Rent and Mortgage Cancellation Act affirms that housing is a human right and ensures that no person or family is forced to choose between putting food on the table and keeping a roof over their head during this unprecedented crisis,” Pressley said.