Surge in Eviction Expected As Moratorium Ends
The Centers for Disease Control (CDC) just announced that there will be one last extension on the nationwide Covid-19 related pause on evictions.
The eviction moratorium will end July 2021.
According to the CDC the pandemic presented an unprecedented threat to the nation’s public health. Therefore keeping people separate was a primary goal which in effect was achieved via the eviction moratorium. By prohibiting evictions, people remained in their homes, out of crowded and populated places (such as homeless shelters) which helped public safety. The eviction moratorium was enacted by the CDC order in September and subsequently extended by Congress and President Biden.
The eviction moratorium has faced several legal challenges from landlords and property owners since enacted, but the Supreme Court just rejected an appeal to end the CDC moratorium. Although some jurists felt the CDC overstepped its bounds by issuing the moratorium, they nonetheless voted (by a 5-4 decision) to extend it through July. The consensus is that the extra few weeks will allow for additional and more orderly distribution of congressional rental assistance funds.
To date Congress has allocated $46 billion for emergency rental assistance to help struggling tenants. Distributing the money, however, has been far from ideal as much of it has yet to make it to its intended recipients. According to some estimates, there may be close to an additional $26 billion that has yet to be authorized. An example of one such program is the New York State program called Emergency Rental Assistance Program (ERAP).
Renters are well aware of the impending situation as close to 3.2 million renters said there is a high likelihood they will need to vacate their home in the next two months due to eviction.
In order to avoid a court situation, many cities feel the next step is to implement mandatory eviction diversion programs. For example, last month, Philadelphia began requiring landlords to participate in such a program before they could file for eviction. The goal is to connect tenants and landlords so that they could work out a payment agreement and avoid court proceedings. In its early stages, the program was successful 70% of the time in reaching a positive agreement between tenant and landlord and avoiding court.
If court is unavoidable, many feel the judicial system needs to advocate more successfully for tenants. While 80% to 90% of landlords are usually represented by counsel in a landlord/tenant court proceeding, only 10% of the time does this occur for the tenant.
Finally consumer advocates feel the eviction records should be sealed so that when these tenants do apply for new housing they are not denied and possibly discriminated against based on Covid related issues. This will only serve as an additional barrier to these tenants going on with their lives.
On the other hand, policies to protect small landlords should also be enacted as many of the small property owners had few resources to fall back on during this crisis.
According to one study done by the National Rental Council, around 12% of landlords who owned at least one single family home were forced to sell this property amid the pandemic.
One reason to avoid this situation is that less available rental housing will create a shortage and drive the cost up to renters.
The Home Assistance Center can guide you through this tumultuous time and provide you with the assistance you need.
