CDC Issues Temporary Eviction Order
On Tuesday, the Centers for Disease Control (CDC) announced an order to temporarily halt residential evictions to prevent the further spread of COVID-19. You can find the CDC order here.
The order begins on September 4, 2020 and ends on December 31, 2020.
Important points about the order:
- The order applies to all rental properties – not just CARES Act properties - and prohibits eviction only if the renter provides the required declaration to the housing provider. The required declaration is located on pages 33-37 of the order.
- The burden is on the resident to provide the declaration to the owner/manager of the property.
- In order to be eligible for the order’s protections, the resident (and each adult on the lease) must provide the following information and meet all of the following criteria, under penalty of perjury:
- The individual has used best efforts to obtain all available government assistance for rent or housing;
- The individual either (1) expects to earn no more than $99,000 in annual income for the calendar year 2020 (or no more than $198,000 if filing a joint tax return), (2) was not required to report any income in 2019 to the U.S. Internal Revenue Service, or (3) received an Economic Impact Payment (stimulus check) pursuant to Section 2201 of the CARES Act;
- The individual is unable to pay the full rent or make a full housing payment due to substantial loss of household income, loss of compensable hours of work or wages, a lay-off, or extraordinary out-of-pocket medical expenses;
- The individual is using best efforts to make timely partial payments that are as close to the full payment as the individual’s circumstances permit, taking into account other non-discretionary expenses; and
- Eviction would likely render the individual homeless –or force the individual to move into and live in close quarters in a new congregate or shared living setting—because the individual has no other available housing options.
- It will be up to the court to review the legitimacy of the resident’s declaration and allow property owners/managers the right to challenge any inaccuracies in the declaration.
- The order can impact existing cases. If a resident provides a completed declaration, you need to halt the eviction process and review the declaration.
- Late fees, penalties, or interest can still be charged for nonpayment of rent. Outstanding balances will become due when the order ends.
- Residents are still obligated to pay rent and comply with their leases – the CDC order is not rent forgiveness.
- This order is not a complete ban on evictions. Non-monetary lease violations are not protected under this order.
- Unlike the CARES Act, the CDC order includes criminal penalties. A person violating the order may be subject to a fine of up to $500,000 or one year in jail.
- Engaging in criminal activity;
- Threatening the health or safety of other residents;
- Damaging or posing an immediate and significant risk of damage to property;
- Violating any applicable building code, health ordinance, or similar regulation relating to health and safety; or
- Violating any contractual obligation, other than the timely payment of rent or similar housing-related payment (including non-payment or late payment of fees, penalties, or interest).
AAGD will continue to keep our members updated on any changes to this order or any other policies affecting our industry. AAGD is working with TAA, NAA, and other affiliates across the country to advocate for emergency rental assistance and an end to eviction bans.
We urge you to continue to work with residents who may have been impacted by COVID-19, directly or indirectly. And please consult with your own legal counsel before making decisions on how to handle an eviction case involving a resident declaration under the CDC order.
To learn more about the CDC order and frequently asked questions, read the NAA/TAA guidance.
*you must be logged in as an AAGD member to access the NAA/TAA Guidance.
Free 75-minute webinar: Understanding the CDC Eviction Moratorium
Hosted by: NAA & TAA
When: Thursday, September 10 at 2 p.m. CDT.
The webinar features NAA Senior Vice President, Government Affairs Greg Brown, NAA Vice President, Legal Affairs and Counsel Scot Haislip, NAA Senior Staff Attorney Ayiesha Beverly, NAA Director of Public Policy Nicole Upano, TAA General Counsel Sandy Hoy and Hoover Slovacek Equity Partner Howard Bookstaff, who will provide the latest updates on the CDC Order.