Some federal moratoria on evictions in the US are the CARES Act Eviction Moratorium, the FHFA Mortgage and Eviction Moratorium, and the CDC Temporary Evictions Moratorium. The CARES Act and the FHFA moratoria expired on July 24 and August 31, respectively, while the CDC Eviction ban is expected to expire on December 31, 2020.
The CARES Act Eviction Moratorium
- The over $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress and signed into law by President Trump on March 27th, 2020.
- The CARES Act featured an eviction moratorium to protect renters living in rental properties with federal assistance or financing related to the federal government.
- According to the moratorium, which expired on July 24, 2020, “prohibits landlords of certain rental covered dwellings from initiating eviction proceedings or charging fees, penalties, or other charges against a tenant for the nonpayment of rent.”
- The moratorium applied to renters in federally-subsidized housing, and it “covered between 12.3 million and 19.9 million households, or 28.1 to 45.6 percent of all renter households.”
- The dwelling rental units covered by the Act are “subsidized, financed, insured, guaranteed, or otherwise supported by the federal government.”
- The CARES moratorium also protected renters whose mortgages are “owned, securitized, or insured by Fannie Mae, Freddie Mac, the Department of Housing and Urban Development (HUD), USDA, or other federal agencies.”
- Once the moratorium expired on July 24, landlords were allowed to give tenants a one-month eviction notice.
FHFA Mortgage and Eviction Moratorium
- To help protect renters from evictions occasioned by the COVID-19 pandemic, the Federal Housing Finance Agency implemented a foreclosure and eviction moratorium that applied to renters and homeowners of “single-family homes with mortgages through Fannie Mae or Freddie Mac.”
- The original moratorium expired on June 30, 2020, but it was extended to August 31, 2020.
The CDC Temporary Evictions Moratorium
- The latest federal moratorium on eviction went into effect on September 1 and is set to expire on December 31.
- Unlike the CARES Act moratorium, which only covered federally-subsidized housing units, the CDC moratorium protects renters in the 43 million rental households in the United States.
- The order was issued by the Center for Disease Prevention (CDC) as a measure to mitigate the spread of COVID-19 since residential evictions, homelessness, and crowded places are key contributors to the spread of the virus.
- According to the moratorium, ” 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 to which this Order applies during the effective period of the Order.”
- While the order halts evictions for non-payment of rent, it does not prohibit late fees or penalties, does not forgive rent, and does not offer any financial assistance to help tenants pay their rent.
- For tenants who have fallen back on rent to be covered by this order, they must fulfill the following conditions:
- They must declare that they’ve tried their best to raise the rent.
- They don’t expect to earn more than $98,000 or ($198,000 if filled jointly) in 2020.
- They cannot pay their full rent due to lost income or extraordinary medical expenses.
- They’ve proved that they’ve tried to pay as much of their rent in as timely a manner possible.
- If evicted, they have to prove that they’ll end up in a homeless shelter or some crowded place.
- Tenants and renters who meet the above requirements must sign a declaration form and leave it with their landlords.
- The CDC ban on evictions could prevent up to 40 million Americans from losing their homes.