Tonight, the Centers for Disease Control issued this proposed Order that will prohibit most residential evictions nationwide. The Order is scheduled to take effect on September 4, 2020, this Friday, and last through the end of the year.
Previous rulings by the federal government limiting evictions were limited to projects financed with special HUD loans, which were few and very large projects. In contrast, this ruling applies to almost all residential tenants in all States and US Territories (except American Samoa) with the following exceptions:
- Engaging in criminal activity while on the premises;
- 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 other 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).
The Order also will not apply to residents who earn more than $99,000 individually or $198,000 if filing jointly.
In order to qualify for the protection, the resident must sign a CDC-prescribed form that says:
- The individual has used best efforts to obtain government assistance for the payment of rent.
- The individual falls below the above-income thresholds.
- The individual can’t pay rent due to loss of income or medical expenses.
- The individual is using best efforts to pay the rent or as much of it as he can.
- Eviction would render the individual homeless.
The Finney Law Firm sees this as a significant shift in the balance between landlords and tenants in fulfilling leasehold obligations through year’s end. It will cause economic hardship for many landlords, and could force many projects into default.
Contact Chris Finney (513-943-6655) for more details and to learn how we can help.