On September 1st the CDC declared that effective September 4th 2020 there is a nationwide moratorium on evictions until December 31st, 2020. 

The Centers for Disease Control (CDC) seems like an unlikely source of an order like this, doesn't it? The CDC is part of the US Department of Health and Human Services and acted under authority of the Public Health Service Act.

The agency states that 

"evictions threaten to increase the spread of COVID-19 as they force people to move, often into close quarters in new shared housing settings with friends or family, or congregate settings such as homeless shelters.” To prevent those issues from compounding the spread of Covid-19 the CDC under authority of the Public Health Service Act issued the Agency Order. 

 

How does this affect YOU the landlord? 

The order covers certain residential evictions related to non-payment of rent caused by a Covid related event or situation. That means commercial evictions are not impacted. 

A tenant wishing to exercise their rights under this order has to be a "covered" person and has to provide the landlord with a Declaration.

In this cases "covered" means eligible. Any tenant, lessee or resident of a residential property that provides the landlord with the declaration is "covered". 

The Declaration requires the Tenant to make a legal statement that the tenant: 

  • Has made all efforts to receive government assistance for rent or housing

  • Expects to earn less than $99,000 as an individual in 2020

  • Is unable to make a full rental payment due to loss of work hours, wages, layoffs or extraordinary out of pocket medical expenses

  • Is using best efforts to make as close to the full rental payment as possible

  • Is likely to become homeless or move into another occupied residence if evicted

If your tenant calls you and says they can't pay because of the above, what should you do? First, ask them for their Declaration. Second, find out how much they CAN pay and work out a payment plan to help you both get through the next quarter. That plan should be in writing and should have clearly defined and stated goals and consequences. 

If your tenant is in non-compliance with their lease for other reasons: noise violations, trash or property conditions, parking violations etc., you can proceed with your normal eviction process. 

Tenants should know that rent is not waived, it remains due. A tenant that takes shelter under this order is just pushing rent off till a later time and under the order now it appears that all the rent that's been delayed will come due on January 1, 2021. That's good news for landlords in that rent is scheduled to be paid, but could be tough on tenants who are already carrying a financial load they can't meet and who are vulnerable to further loss of wages. 

What should you do? Think about a payment plan or other ways that you can help your tenant, particularly financially vulnerable tenants, keep their head above water while keeping your own mortgage paid. Call your attorney to help draft a strong payment plan that will protect your interests if you have a tenant in this circumstance. 

For more information see the following sources: 

To geek out on the actual rule, see the Federal Register here:

https://www.federalregister.gov/documents/2020/09/04/2020-19654/temporary-halt-in-residential-evictions-to-prevent-the-further-spread-of-covid-19

To read the AARP article see: https://bit.ly/35A51sB

To hear the NPR report: https://www.npr.org/2020/09/09/911093595/what-to-do-if-you-cant-pay-your-rent

For our more conservative readers, here's Fox News' take: 

https://www.foxnews.com/politics/trump-order-prompts-cdc-to-ban-coronavirus-related-evictions-through-end-of-2020