CDC Issued a Nationwide Order Halting Evictions for Nonpayment

AANC News,
The CDC issued a nationwide order halting evictions for nonpayment of rent beginning Friday, September 4th. Set to expire December 31st, this order provides provisions for renters with annual income levels at or below $99,000 or $198,00 for dual income households.

This announcement was a surprise to the industry, and like AANC, NAA will analyze the language, monitor the development of this order, and gauge the impact this will have on the industry. Below you will find an outline detailing the parameters of the order.

  1. Applies to all properties;
  2. Is expected to take effect on September 4, 2020;
  3. Only applies to nonpayment related evictions;
  4. Expires December 31, 2020;
  5. Only protects residents who provide a declaration that they are a “Covered Person” by filing which is defined as:
    • “Covered person”5 means any tenant, lessee, or resident of a residential property who provides to their landlord, the owner of the residential property, or other person with a legal right to pursue eviction or a possessory action, a declaration under penalty of perjury indicating that:
      • The individual has used best efforts to obtain all available government assistance for rent or housing;
      • The individual either (i) expects to earn no more than $99,000 in annual income for Calendar Year 2020 (or no more than $198,000 if filing a joint tax return),6 (ii)was not required to report any income in 2019 to the U.S. Internal Revenue Service, or (iii) received an Economic Impact Payment (stimulus check) pursuant to Section 2201 of the CARES Act;
      • the individual is unable to pay the full rent or make a full housing payment due to substantial loss of household income, loss of compensable hours of work or wages, a lay-off, or extraordinary7 out-of-pocket medical expenses;
      • the individual is using best efforts to make timely partial payments that are as close to the full payment as the individual’s circumstances may permit, taking into account other nondiscretionary expenses; and
      • eviction would likely render the individual homeless—or force the individual to move into and live in close quarters in a new congregate or shared living setting—because the individual has no other available housing options.
  6. Beyond prohibiting a lock-out it is not clear at what point in the eviction proceeding the act takes effect as the Declaration set forth above is to be provided to a landlord who has a right to evict the resident or have them removed. In NC this right does not attach until a judgment for possession is issued.       

CDC’s Eviction Moratorium

NAA’s Official Statement