Is the Federal Eviction Moratorium Over? How Much Longer Will the State’s Last?
Thanks to a U.S. Supreme Court decision in June and a lack of Congressional action last month, the federal freeze on pandemic-related residential evictions ended July 31, but it may be reborn. California’s moratorium will come to a close by the end of September unless it’s extended again. The federal government’s willingness to pay residential rent for those impacted by COVID-19 has come to an end.
Whether you’re a landlord or a tenant, if you have questions about eviction or need legal representation, call Anthony Burton at (949) 244-4207. We can talk about your case, how California law would apply, and your best options are moving forward.
Court Ruling Puts Federal Moratorium’s Fate in the Hands of an Unwilling Congress
The ban expired after the U.S. Supreme Court ruled in June the executive branch didn’t have the authority to continue the eviction freeze without Congressional authorization. An effort to extend it failed in the House of Representatives, according to the Associated Press.
On August 3 President Biden stated his administration would try to find a way to keep the moratorium going in areas where COVID-19 is spreading more rapidly. This appears to be more a political move than one that will stand up in court, but the CDC acted this week to extend the moratorium through October 3, 2021. The order does provide for various exceptions including evictions that were completed before issuance of the newest CDC order or other evictions unrelated to non-payment of rent including violations of the tenant’s contractual obligations, damaging the property or engaging in criminal activity.
California’s eviction moratorium continues, thanks to another $5 billion in federal rental assistance for tenants and small landlords, according to the Governor’s office. Parts of the agreement between the Governor and legislature include 100% reimbursement for past rent due plus future payments. Another $2 billion will help tenants pay utility bills.
One reason why the federal eviction stoppage ran out of steam may be that states haven’t spent more than $20 billion set aside to pay landlords. State and localities only spent about $3 billion of the first $25 billion in federal funding through June. Despite this, another $21.5 billion will be on the way. Though disbursements increased in June, some states have distributed close to nothing.
California started paying rental assistance earlier this year with federal money. As of late June, 54,520 tenants asked for $616.4 million in assistance, but the state has disbursed only $61.6 million to them, reports ABC News. Gov. Gavin Newsom admits the state hasn’t responded quickly enough, and the application process is sluggish, but blamed the federal government for being slow in getting money to state governments.
Millions of Americans Are at Risk of Eviction in the Coming Months
The original federal moratorium was put in place by the federal Centers for Disease Control and Prevention in September to try to prevent COVID-19’s spread. It’s estimated it’s kept about 2 million people in their homes. About 15 million Americans owe as much as $20 billion in back rent, according to the Aspen Institute. Roughly 3.6 million people face eviction in August and September, according to the U.S. Census Bureau’s Household Pulse Survey.
Next month the nation’s first foreclosure proceedings are expected to start. About 1.75 million homeowners, occupying 3.5% of all homes, are involved in a forbearance plan with their mortgage holders, according to the Mortgage Bankers Association. That’s roughly 8 million fewer homeowners who lost their homes through foreclosure after the recession of 2008.
The Pandemic Economy Increases the Gap Between the Haves and Have Nots
We’re currently living in a bizarro world where real estate prices continue to climb to record highs while millions of Americans can’t afford to pay rent. Many of us left city living to move to the suburbs and rural areas, leaving apartments vacant and homes for sale. That’s reversed with vacancy rates diving.
Future homeless tenants face more than financial consequences. Studies show evicted families have higher rates of infant mortality, high blood pressure, and suicide. The costs of pandemic-related homelessness could be astronomical. The University of Arizona’s National Low Income Housing Coalition and Innovation for Justice Program at estimates all the costs of COVID-19-related evictions might be as high as $129 billion. You could pay every person in California nearly $3,300 with that much money.
We’re Here to Help
Anthony Burton represents tenants and property owners in eviction actions. Whether you want to know whether you can prevent or delay in losing your apartment or need to have a tenant removed due to a lack of payment or breach of lease, we can help. Eviction is a very technical legal area. The process must be done correctly or it’s subject to an appeal by the losing side.
Call us at (949) 244-4207 or fill out our online contact form today. We can talk about your cast and what you should do next.
