The Supremes have spoken: the federal eviction moratorium is no longer enforceable.
After months of working its way through lower courts and surviving a prior Supreme Court challenge in June 2020, the federal eviction moratorium has met its final end. In a divided decision, the highest court in the land rejected the moratorium imposed by the Centers for Disease Control (CDC), asserting the CDC does not have the authority to issue such sweeping orders.
In its prevailing opinion, the Court acknowledges the moratorium is in “the public interest” to slow the spread of COVID-19. But since the governing system is not designed to allow the CDC such broad authority, the Court will step in to end the moratorium.
If the U.S. eviction moratorium is ever to be reinstated, it will need to be under congressional orders, or otherwise be mandated at the state level.
This is the conclusion to the saga first introduced by state subsidiaries of the National Association of Realtors® (NAR) at the end of 2020. Representing their membership, NAR claims the eviction moratorium has cost landlords billions of dollars due to lost rents, ultimately more important to their membership than the need to keep individuals housed while the pandemic continues to rage.
California’s moratorium to continue
Here in California, an eviction moratorium remains in place through September 30, 2021.
California’s eviction moratorium prohibits landlords from evicting tenants under COVID-19-related financial distress for the nonpayment of rent.
14% of California renters were behind on their rent as August 2021, according to the U.S. Census. Meanwhile, California is still missing roughly 1.2 million jobs from the pre-recession peak as of July 2021. Until these jobs are regained, the end of these moratoriums will result in a devastating rise in rental vacancies.
Landlords seeking relief from nonpaying tenants — and tenants seeking help paying back missed rents — may apply for the Emergency Rental Assistance (ERA) program.
Related article:
Landlords, tenants in the dark about Emergency Rental Assistance
To apply, landlords and tenants may visit: http://housingiskey.com.
Landlords are eligible to receive assistance when:
- the tenant’s household is income eligible(the state will calculate this when the tenant applies);
- all payments received need to be used to satisfy the tenant’s unpaid rent beginning from April 1, 2020; and
- the tenant needs to verify they meet eligibility requirements and sign the application.
The state will send the tenant a notification for the tenant to complete these tasks. Without the tenant’s cooperation to complete the application, the landlord may take steps to evict the tenant beginning October 1, 2021. [Calif. Code of Civil Procedures §1179.11]
For more details on the state’s moratorium under California’s Rental Housing Recovery Act, see this firsttuesday article.
Hurray for the Supremes’! Finally reason has prevailed in this debacle. I do take issue with the author’s statement; “Until these jobs are regained, the end of these moratoriums will result in a devastating rise in rental vacancies.” That might or might not be true – it seems to me there are plenty of jobs out there that are not filled because people are receiving too much unemployment to be worth the effort of working. In any case, the process for Landlord’s to receive Covid relief payments is deeply flawed and essentially requires the tenant’s to initiate and complete the paperwork. In the absence of this, the Landlord does not get paid. That’s why even with all the available money only 15-20% has been used (paid) to Landlord’s.
It’s a nightmare and so ridiculous that you have to following up with the housing is key rental assistance program every couple of days on an application submitted by both the landlord and tenant only to find out that the tenant has not completed “their part” which you as the landlord are not allowed to be inform on what is missing, although when you do log in, it shows a “application submitted” status giving you a false sense that all is moving forward and going well. But it really isn’t.
You must call, because if you don’t, you will waste weeks or months waiting thinking everything is fine when it is not. So now on top of providing housing services, in order to get paid your back rent due, landlords must babysit the tenants application through the entire process or you won’t get your back rent. Landlords will have to inform their tenants to contact the “housing is key” rental assistance program because their application is missing information.
And the tenants get to stay in the rental (you can’t evict) as long as the “housing is key” rental assistance program status shows they applied. Too bad landlords can’t show this “ applied status” to the property tax assessor, fire insurance company, mortgage company, workers fixing tenant caused damages to wait indefinitely to delay their payments.
For California, September 30th offered no landlord relief. If your tenants apply for rental assistance, landlords are forced to play this game with the tenant and the rental assistance program Until the new date of March 31, 2022 ends (the day after the courts can issue a summons for eviction for non payment of rent). April 1,2022 the courts I expect will be flooded. This is absolutely heart breaking for landlords. Landlords have to keep telling themselves you are in it for the long haul and this too shall pass to keep your sanity.
Correction to the March 31st date indicated above::
Between October 1, 2021 and March 1, 2022, courts will only allow formal UNlawful detainer actions when the landlord has attempted to obtain rental assistance, and:
the application is denied; or
after 20 days have passed, there is no sign the tenant will cooperate. [CCP 1179.11(a)]
Glad you are back, did not see your postings for a while. I am not for or against the CDC but clearly the Supreme Court issued a correct ruling. The CDC does not have the authority to issue laws. Incidentally, were you aware that it has an annual budget of almost $7 billion; the current scope of therir programs has expanded exponentially and the current spirit of the program is totally different than when first created. Simply, it has become a beaurocratic/political arm of the political establishment.
Gentlepersons,
You all continue to write articles of interest and value for we readers.
Thanks – keep it up.
Courteous regards,
D LeMoine B