CDC Issues New Residential Eviction Moratorium Through Oct. 3
The Centers for Disease Control and Prevention issued a new order temporarily halting residential evictions through October 3 in U.S. counties with “heightened levels of community [COVID-19] transmission.”
The new order comes after the most recent nationwide eviction moratorium expired on Saturday, July 31.
The CDC’s initial eviction moratorium, first implemented in September 2020, faced numerous legal challenges. This included a majority of the U.S. Supreme Court agreeing in late June that the CDC exceeded its authority. However, the Court declined to lift the D.C. Federal District’s stay, which allowed the moratorium to remain in place until the end of last month to allow for more distribution of rental assistance funds. Supreme Court Justice Kavanaugh, while providing the tie-breaking vote to keep the moratorium in place, said Congress would need to authorize an extension of the eviction moratorium past July 31, 2021.
Following unsuccessful efforts to pass legislation in recent days, House and Senate Democrats urged the Biden administration to act. This new CDC eviction moratorium is intended to “target areas specific areas of the country where cases are rapidly increasing, which likely would be exacerbated by mass evictions.” Given current COVID-19 case counts, this would cover a substantial part of the country.
The Mortgage Bankers Association opposed any potential attempts by Congress last week to legislatively extend the CDC’s evictions moratorium and does not believe yesterday’s ruling is needed, given the $46 billion in Emergency Rental Assistance available.
Last Wednesday, the Biden administration and Consumer Financial Protection Bureau launched a call to action to raise awareness about the ERA resources available to tenants and landlords. These efforts include the CFPB’s new rental assistance tool, which allows tenants and landlords to find detailed information on rental assistance programs in their area. Following the announcement, MBA released a press statement of support from President and CEO Bob Broeksmit, CMB, and shared CFPB-recommended social media posts. MBA is also working closely with multifamily loan servicing members to communicate to borrowers that billions of dollars are available to help tenants and landlords in need.
MBA will follow developments regarding the CDC’s new eviction moratorium, including any challenges by state and federal courts. We will continue to partner with the Biden administration, the CFPB, state-level policymakers, and industry stakeholders to help tenants and landlords, including the continued push for states to distribute rental assistance more efficiently. Rental assistance will help keep families in their homes, while also protecting the safety and soundness of multifamily markets.
For more information, contact Grant Carlson at (202) 557-2765.
