Administration Issues Nationwide Eviction Moratorium Through Dec. 31
Citing the need to “prevent the further spread of COVID-19,” the Trump Administration issued an order temporarily halting residential evictions through Dec. 31.
The order (https://s3.amazonaws.com/public-inspection.federalregister.gov/2020-19654.pdf), issued by the Centers for Disease Control and Prevention and the Department of Health and Human Services, says a “landlord, owner of a residential property or other person with a legal right to pursue eviction or possessory action, shall not evict any covered person from any residential property in any jurisdiction” through the end of the year.
“In the context of a pandemic, eviction moratoria–like quarantine, isolation, and social distancing–can be an effective public health measure utilized to prevent the spread of communicable disease,” the order said. “Eviction moratoria facilitate self-isolation by people who become ill or who are at risk for severe illness from COVID-19 due to an underlying medical condition. They also allow State and local authorities to more easily implement stay-at-home and social distancing directives to mitigate the community spread of COVID-19. Furthermore, housing stability helps protect public health because homelessness increases the likelihood of individuals moving into congregate settings, such as homeless shelters, which then puts individuals at higher risk to COVID-19. The ability of these settings to adhere to best practices, such as social distancing and other infection control measures, decreases as populations increase. Unsheltered homelessness also increases the risk that individuals will experience severe illness from COVID19.”
Mortgage Bankers Association President and CEO Bob Broeksmit, CMB, issued the following statement in support of the order (https://www.mba.org/2020-press-releases/september/mba-statement-in-response-to-the-hhs-and-cdc-agency-order-on-a-residential-eviction-moratorium-through-december-31-2020):
“MBA appreciates the intent of today’s executive order to ensure that renter households facing financial hardship from the ongoing COVID-19 pandemic can stay in their homes. Protecting families experiencing or soon to be threatened with severe housing instability is a must during these challenging times.
“Although an eviction moratorium through the end of the year is important for renters, it is not a complete or long-term solution. If tenants are unable to pay their rent, then millions of our nation’s housing providers – many of whom are individual landlords and small business owners – will be unable to meet their mortgage obligations, make payroll to their own employees, maintain a safe and healthy living environment for their tenants, and pay their state and local government property taxes. The result would be a cascading reaction that would only exacerbate the current economic crisis, leading to more job loss, financial pain, and long-lasting economic effects. “That is why we continue to call upon Congress to work with the administration and pass legislation – as called for by a growing bipartisan group of policymakers – as quickly as possible to provide direct financial support and emergency rental assistance with workable mechanisms to ensure it reaches tenants in need. Rental assistance is a major tool that should be used to keep families in their homes, while also protecting the safety and soundness of the entire multifamily finance market. The time to act is now.”
MBA plans a CREF member call to discuss the Executive Order at 3:00 PM ET on Sept. 3. Speakers will include
–Richard Michael Price, Partner, Nixon Peabody
–Bruce Oliver, AVP, Commercial & Multifamily Policy, MBA
–Bill Killmer, SVP Legislative & Political Affairs, MBA
–Mike Flood, SVP, Commercial & Multifamily, MBA
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Please contact Kelli Burke for additional information.