What Does the CDC Eviction Moratorium Mean for Tenants?
Overview
There is some good news for residential tenants. Recently, the Centers for Disease Control and Prevention (CDC) issued an Order temporarily banning residential evictions nationwide. The Order comes as tenant advocacy groups indicated millions could face eviction without government intervention.
Since the CARES Act moratorium expired in July 2020, various housing groups reported a surge in eviction filings. In response, the CDC warned of potential coronavirus spread if tenants are evicted and forced into shelters or other crowded housing.
The Order
The Order prevents landlords, residential property owners, or other persons with eviction rights, from evicting any covered person from residential property. The Order is effective now through December 31, 2020.
However, Tenants may still be evicted for violations unrelated to rent. So, tenants must continue to comply with their lease terms and rules of their residence.
Additionally, the moratorium does not suspend rent or housing payment obligations individuals may have under their lease or similar housing agreement.
Also, nothing in the Order prevents landlords from charging interest or collecting fees from tenants who fail to pay rent or other housing payment on a timely basis.
Though the legality and enforceability of the Order are uncertain at this time, it certainly can serve as a defense to eviction if you meet the Order’s requirements.
How to apply for coverage:
1. Complete the CDC Declaration form or a similar declaration.
2. Tenants must sign the Declaration in front of a Notary Public and send a copy of the signed Declaration to their landlord.
Declaration Form Guidelines
Tenants seeking coverage under the Order must indicate on their Declaration form whether:
· They used best efforts to obtain all available government assistance for rent or housing;
· They either expect to earn no more than $99,000 in annual income for Calendar Year 2020 (or no more than $198,000 if filing a joint tax return), was not required to report any income in 2019 to the U.S. Internal Revenue Service, or received an Economic Impact Payment (stimulus check) under Section 2201 of the CARES Act;
· They are unable to pay the full rent or make a full housing payment due to substantial loss of household income, loss of compensable hours of work or wages, a lay-off, or extraordinary out-of-pocket medical expenses;
· They are using best efforts to make timely partial payments that are as close to the full payment as tenant’s circumstances may permit, taking into account other nondiscretionary expenses; and
· Eviction would likely render them homeless or force the tenant to move into and live in close quarters with unfamiliar individuals or shared living space because the individual has no other available housing options.
Each adult listed on the lease or other housing contract should complete and provide a Declaration to avoid eviction.
Criminal Penalties
Any violations under the Order will result in criminal penalties listed below.
· A person violating this Order may be subject to one year in jail, a fine ranging from $100,000 and $250,000 depending on whether the violation results in death.
· An organization violating this Order may be subject to a fine of no more than $200,000 per occurrence or $500,000 per occurrence if the violation results in a death or otherwise provided by law.
Helpful Resources:
For access to the Order’s Declaration form visit: https://www.cdc.gov/coronavirus/2019-ncov/downloads/declaration-form.pdf
For access to the official Order visit: https://www.federalregister.gov/documents/2020/09/04/2020-19654/temporary-halt-in-residential-evictions-to-prevent-the-further-spread-of-covid-19
For program support, including technical assistance, please visit www.hudexchange.info/programsupport.
For further information on HUD resources, tools, and guidance available to respond to the COVID-19 pandemic, State and local officials are directed to visit: https://www.hud.gov/coronavirus.
