The U.S. Centers for Disease Control and Prevention (CDC) has issued a nationwide order that will halt millions of U.S. renters from being evicted through Dec. 31, 2020.
The eviction moratorium will take place on Sept. 4 and the CDC said the measure to temporarily halt residential evictions of any covered tenants for failure to pay rent is necessary to prevent the further spread of COVID-19.
NAHB is deeply concerned the CDC's rental eviction moratorium through the end of the year will result in negative economic consequences without dedicated funding for rental assistance.
"Therefore, it is imperative the White House works with Congress on a new coronavirus relief package that will protect tens of millions of renters and small business property owners who are suffering severe financial stress from the pandemic," said NAHB Chairman Chuck Fowke. "Absent rental income, these small mom and pop property owners must continue to pay their mortgage, property taxes, employees and cleaning/maintenance services. And without sufficient rental income, a number of properties would be pushed into foreclosure. Congress must act now to assist renters and property owners."
To be eligible for the eviction moratorium, a tenant must sign a form under penalty of perjury and send it to their landlord to qualify. By signing the form, the tenant is indicating they qualify for the following five stipulations, but they aren't explicitly required to prove that:
- The individual has used best efforts to obtain all available government assistance for rent or housing;
- The individual either:
- Expects to earn no more than $99,000 in annual income for calendar year 2020 (or no more than $198,000 if filing a joint tax return);
- Was not required to report any income in 2019 to the U.S. Internal Revenue Service; or
- Received an Economic Impact Payment (stimulus check) pursuant to Section 2201 of the CARES Act;
All other evictions such as criminal activity or threatening the health and safety of others is still permitted.
The CDC order "does not relieve any individual of any obligation to pay rent, make a housing payment, or comply with any other obligation that the individual may have under a tenancy, lease, or similar contract. Nothing in this order precludes the charging or collecting of fees, penalties, or interest as a result of the failure to pay rent or other housing payment on a timely basis, under the terms of any applicable contract."
For more information, contact Michelle Kitchen.