Property Management Council

Navigating Residential Evictions During COVID-19

By: Liz Berry, Associate Advisor, SVN | Commercial Advisory Group

On September 4, 2020, a temporary moratorium from the Centers for Disease Control (CDC) took effect disallowing residential evictions to take place until January 1, 2021. This order was issued to prevent the continued spread of COVID-19 and provide extended protection of the American public against further transmission of the disease. The directive was sent out on September 2 to supplement the ending of the CARES (Coronavirus Aid, Relief, and Economic Security) Act, which ended on August 31, 2020.

ADDITIONAL CDC GUIDELINES

The CDC moratorium puts additional guidelines and protections in place along with a supplemental declaration for use as needed. The provided declaration is not mandatory but if not used a similar document must be used in its place. A PDF of the form is available to the public on the CDC website. The order makes it very clear that it does not take precedence over any other postponements regarding evictions by other municipalities. The order states, that “in accordance with 42

U.S.C. 264(e), this order does not preclude state, local, territorial, and tribal authorities from imposing additional requirements that provide greater publichealth protection and are more restrictive than the requirements in this order.”

The CDC makes very clear in its directive that it does not enable an individual to not pay rent it simply enables them to put off payment of rent and to not be evicted while not able to pay rent. Additionally, it provides for the landlord to charge interest and/or late fees for delayed compensation. It does not absolve the property manager or owner from fulfilling their debt service obligations. The moratorium implements stiff fines against violations of the policy by those seeking to evict tenants.

POSSIBLE VIOLATIONS “Under 18 U.S.C. 3559, 3571; 42 U.S.C. 271; and 42 CFR 70.18, a person violating this order may be subject to a fine of no more than $100,000 if the violation does not result in a death or one year in jail, or both, or a fine of no more than $250,000 if the violation results in a death or one year in jail, or both, or as otherwise provided by law. An organization violating this order may be subject to a fine of no more than $200,000 per event if the violation does not result in a death or $500,000 per event if the violation results in a death or as otherwise provided by law. The U.S. Department of Justice may initiate court proceedings as appropriate seeking imposition of these criminal penalties.”

Property managers are encouraged to have tenants seek supplementary funds to cover their rent payments. The Department of Housing and Urban Development (HUD) and the Department of Treasury have expressed their backing of the moratorium along with the use of government funds to support those needing rental assistance. The order will remain in effect until December 31, 2020, unless extended or modified beyond that. See below for links directly to the CDC moratorium available on the Federal Register. This article is meant to create awareness. Please consult your real estate attorney for direct legal advice on any evictions or suspected violations of the order. •

Source: www.federalregister.gov/documents/2020/09/04/2020-19654/temporaryhalt-in-residential-evictions-to-prevent-the-further-spread-of-covid-19