The following information is provided by AZREIA Business Associate Zona Law Group P.C.

CDC MORATORIUM EXTENDED UNTIL JULY 31, 2021

As we expected, the CDC extended the eviction moratorium. This time it was extended until July 31, 2021. In the new Order, the CDC claims that this will be the last extension.

A few interesting things have been going on behind the scenes and resulted in this extension. First, 44 federal legislators wrote a letter to the Biden White House and to the CDC requesting that they extend the moratorium. Second, in the one federal case pending before the U.S. Supreme Court challenging the moratorium, 23 attorneys general for different states wrote a brief to the Court supporting the authority of the CDC and requesting that the moratorium be upheld.

The foregoing items are legally noteworthy for a number of reasons, but we will not analyze those. In a nutshell, evictions continue to be an ongoing political hot-button issue and we expect more change to come, even after the CDC Order eventually expires.

According to a report from the New York Times, in addition to the one-month extension, the White House plans other actions to address evictions, which it sees not only as a health issue, but also a racial justice issue. It was reported that “Other initiatives include a summit on housing affordability and evictions, to be held at the White House later this month; stepped-up coordination with local officials and legal aid organizations to minimize evictions after July 31; and new guidance from the Treasury Department meant to streamline the sluggish disbursement of the $21.5 billion in emergency aid included in the pandemic relief bill in the spring.”

In its Order, the CDC argued that “communities with high rates of eviction may currently have lower coverage of COVID-19 vaccination.”

The CDC further wrote: “Although this order is subject to revision based on the changing public health landscape, absent an unexpected change in the trajectory of the pandemic, CDC does not plan to extend the Order further.” Therefore, July 31, 2021 should theoretically be the end of the federal moratorium.

REVIEW CDC EVICTION ORDER MORATORIUM

WHITE HOUSE FACT SHEET ON EVICTIONS

While the moratoriums may end at the end of July, this does not mean that evictions will revert to pre-pandemic procedures. As noted above, the White House will be pursuing different actions to abate evictions. They have published a fact sheet to lay out some of these plans.

A few of the highlighted items that the White House noted regarding their plans:

1. Urge State and Local Courts to Participate in Eviction Diversion Efforts.
2. Strongly encourage partnerships with courts to actively prevent evictions and develop eviction diversion programs
3. Convene a White House Summit for Immediate Eviction Prevention Plans

Another important item that the White House has published is the desire to continue to require federally-backed properties to use 30-day notices.

The administration published the following:

“Ensure that the 30-day Eviction Notice Requirement for Federally-Backed Properties is Enforced. HUD/FHA and USDA will ensure that no landlord (public or private) whose underlying financing is backed by the federal government (e.g., HUD/FHA or USDA), purchased or securitized by the Federal Home Loan Mortgage Corporation (Freddie Mac) or the Federal National Mortgage Association (Fannie Mae), or that is receiving assistance from the federal government may require a tenant to vacate their unit for non-payment of rent until 30 days after the landlord has provided the tenant with a notice to vacate.”

This coincides with the advice we gave in a previous newsletter. We strongly suggest that all such federally backed properties use 30-day notices until further clarification regarding whether such notices are legally required. Make sure you confirm with your lender whether you have such a loan and whether such terms apply to your property.

READ THE FULL FACT SHEET HERE

Zona Law Group P.C.