Housing providers across the country are alarmed. Headlines are stating that President Trump Canceled Evictions, but that’s not quite what has happened.
Because Congress can’t come up with a “CARES Act II” and because President Trump and many citizens wanted something done to help renters affected by COVID that can’t pay rent, they turned to an obscure law that gives the CDC and Health and Human Services broad powers and with those broad powers, they issued a new Federal Eviction Moratorium that President Trump signed that goes into effect September 4th.
What does it all mean?
1st: The Moratorium Only applies to Cases of Non-Payment of Rent
The moratorium only applies to those cases for non-payment of rent due to a substantial loss of income caused by a Covid-19 reason. Evictions for reasons other than non-payment are not affected.
2nd: Tenant Must Sign an Affidavit
A tenant wishing to invoke the Order must sign an affidavit/declaration stating that:
1) He/she is not able to pay rent due to a Covid-19 reason;
2) An eviction would cause him/her to be homeless or to have to move into another residence shared by people who live in close quarters;
3) He/she made an effort to obtain other Governmental assistance to pay rent; and
4) He/she is paying as much rent as he/she can afford.
5) All parties in the house need to sign an Affidavit and certify they have pursued all avenues to get paid.
We highly recommend working with your Eviction Attorney to confirm that tenants are provided the form and that they have in fact turned it in to give yourself proof and protection should you face fines for non-compliance,
3rd: Does Not Relieve Tenants of the Obligation to Pay Rent
The moratorium is only for possession of the property. It does not relieve tenants of the obligation to pay the rent, utilities, late fees or other penalties. So if they invoke their rights and give you affidavits, you can’t set them out, but the rent will still be owed.
4th: Eviction Lawsuits Can Still be Filed
Landlords may continue to file eviction lawsuits for non-payment of rent but if a tenant invokes the Order, the eviction judgment and writ of restitution may not be entered until after December 31, 2020.
Evictions for other reasons other than non-payment of rent such as lease violations are not impacted by this regulation.
5th: Penalties for Violating the Order
- The Order outlines criminal penalties and fines for landlords who violate the Order.
- Many Courts are interpreting the Order to require the landlord to inform the tenant of his/her rights under the Order prior to the entry of a judgment for possession.
- Out of an abundance of caution and to prevent further Court delays, we are recommending you serve a COVID-19 TENANT(S) DECLARATION form on your tenant(s) with your eviction notices.
Note the recording of this event has been removed from the internet, we do however have a similar video recorded by our member association Mid-America Association of Real Estate Investors with Attorney Julie Anderson – one of our three panelists.