CDC Declares Temporary Eviction Moratorium
This week, the Center for Disease Control and Prevention (CDC) announced that to help mitigate against the further spread of Covid-19, it will be enacting an eviction moratorium for qualified renters until the end of the year. The Order follows an Executive Order made by President Trump in August, which directed the CDC to evaluate whether temporarily halting evictions for failure to pay rent would be reasonably necessary to prevent the further spread of COVID-19. The CDC has concluded that such a temporary ban on evictions would be an effective measure to prevent the spread of Covid-19. The Order has been officially published this morning in the Federal Register and is effective September 4, 2020 until December 31, 2020.
Based on the Order, renters must fill out a Declaration Form that validates they meet a specific set of criteria to receive coverage through the eviction moratorium. The moratorium does not forgive rent or prohibit landlords or property owners from charging late fees and stipulates that tenants are still responsible for rent payments and will need to pay back rent in full once the temporary eviction moratorium expires. The moratorium does allow for evictions under certain circumstances, including damage to property or engaging in destructive and/or criminal conduct, and it will still be up to local courts to adjudicate and proceed with eviction filings. If an individual or organization seeks an eviction that violates the order, they will be subject to criminal penalties ranging from $100,000-$500,000.
In response to the Order, House Financial Services Committee Chairwoman Maxine Waters (D-CA) stated that the order does nothing to protect families across the country who are struggling to make their rent payments through no fault of their own during the pandemic crisis. The Chairwoman stated that without emergency rental assistance, millions of families will be faced with paying many months of accrued back rent in a lump sum, meaning that evictions are only being delayed, not prevented.
NAHMA, along with other stakeholder groups, also expressed immediate concerns to Congressional leadership that the eviction moratorium imposed by the Administration, together with Congress’ failure to act on a robust emergency rental assistance plan, places the stability of the entire rental housing sector in danger. The response made clear that federal and state unemployment assistance benefits have helped keep many renters stably housed without undermining the stability of the housing market and the financial health of our communities. As Congress deliberates, NAHMA will continue to advocate for direct financial support and emergency rental assistance for residents and housing providers alike to help those with financial hardships.
To view the CDC’s Temporary Halt in Residential Evictions to Prevent the Spread of COVID-19 Order, click here.
To view House Financial Services Chairwoman Water’s full remarks, click here.
To view NAHMA’s Joint Industry letter expressing concerns over the CDC’s eviction moratorium and requesting passage of a robust emergency rental assistance program, click here.
Treasury Secretary Testifies on Federal Response to COVID-19
On September 1, Treasury Secretary Steven Mnuchin testified on the federal response to the COVID-19 pandemic before the House Oversight and Reform Select Subcommittee on the Coronavirus Crisis. During his testimony, Secretary Mnuchin voiced support for increasing rental assistance and voiced his support to restarting negotiations with House Speaker Nancy Pelosi (D-CA) on a massive coronavirus relief package, emphasizing that both he and President Trump support more emergency aid for workers, schools, small businesses and testing.
Secretary Mnuchin, along with several Democratic lawmakers, discussed areas of broad agreement such as extending enhanced unemployment benefits and more economic impact payments, which Secretary Mnucghin cited as critical to the economic recovery. Secretary Mnuchin stated that he’s willing to negotiate with Democratic leaders to craft a bill based on shared priorities without a topline figure hampering the process. The Treasury Secretary testified that while there may be differences on the amount, he agreed with the Democrats on the idea of providing additional funding for rental assistance. He also mention his support for providing funding for schools, testing, vaccines, the Paycheck Protection Program for small businesses, continued enhanced unemployment benefits, childcare, nutrition, agriculture, and the U.S. Postal Service, along with liability protection for universities, schools, and business.
Secretary Mnuchin also testified that there’s still $130 billion left in Paycheck Protection Program, and mentioned that Congress should take up a standalone action to repurpose this money in order to offer broader support to small businesses that have not been able to access the funding in the program. The secretary also voiced his concerns regarding the current path of the economy and warned lawmakers of the threats facing certain industries such as travel, restaurants, entertainment, and hotels.
To view the full House Oversight and Reform Select Subcommittee on the Coronavirus Crisis hearing on the federal response to COVID-19, click here.
Senate Republicans Plan Scaled Down COVID-19 Proposal
With no signs of a breakthrough, negotiations between Democrat and Republican leadership for additional COVID-19 supplemental emergency funding have continued this week. Speaker Pelosi’s most recent proposal included capping the proposed COVID-19 relief bill at $2.2 trillion, which would be $200 billion less than her previous proposal. Senate Democratic leader Chuck Schumer has also insisted that Senate Republicans and the Trump Administration agree to at least $2.2 trillion in relief for schools, state and local governments, small businesses, food security, unemployment and eviction assistance, and front-line worker aid. In return, Mr. Meadows said President Trump would support a $1.3 trillion package, up from a $1.1 trillion proposal made in August.
Barring a compromise, the Senate is expected to introduce a slimmed down supplemental emergency COVID-19 relief bill next week. The bill is not expected include funding for rental assistance, but is expected to include:
- $300 in weekly federal unemployment benefits through the end of the year;
- less stringent requirements for small business loans to be forgiven;
- an additional $258 billion for the Paycheck Protection Program loans designed to allow those who have already borrowed to do so again;
- $29 billion for Health and Human Services to assist in the development and distribution of vaccines, therapeutics and diagnostics, and a plan for how the vaccine distribution plan will focus efforts on high-risk, underserved and minority populations;
- $16 billion for testing and contact tracing; and $105 billion for schools.
Senate Majority Leader Mitch McConnell expressed his doubts regarding whether Congress will actually reach a consensus and vote to pass any additional COVID-19 relief related legislation, stating that any effort toward a bipartisan deal dwindles as the election draws nearer. This may explain why Speaker Pelosi and Treasury Secretary Mnuchin reached a tentative agreement this week, seeking to use a short-term spending bill to avoid a government shutdown at the end of September. Their tentative agreement would seek to avoid a potentially dangerous stalemate on more economic stimulus coupled with a government shut down and vital services grinding to a halt in the middle of a global pandemic.