Legal Update: Did the CARES Act Go Away or Not? | December 2025

So, Did the CARES Act Go Away or Not?

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If you’ve been asking this question, you’re not alone. And in the best lawyer response we can muster, the answer is: it depends. It depends on exactly what you mean by “go away.” But the better question, really, is how do the several developments related to the CARES Act over the last year or so apply to your properties, and to North Carolina landlords in general.

Of course, everyone reading this is aware of the CARES Act. And more specifically, the CARES Act’s 30 day notice period pertaining to eviction cases. Well, just a brief reminder: the CARES Act – enacted during the early days of the COVID-19 pandemic – did several things, not the least of which was to establish a 30 day “demand to vacate” requirement before a “covered” property can file for an eviction based on non-payment of rent. And while several states have upheld the Act’s 30 day notice provision – citing that it did not end after the “temporary” 120 day eviction moratorium period – recent developments may provide covered landlords with some relief.

One of the primary cases focusing on this notice provision came out of Virginia, where the Virginia Court of Appeals held that the 30 day time period contained in the CARES Act does not prohibit the filing of an eviction action prior to the expiration of the 30 day notice period, only the actual removal of the tenant via the execution of a writ. What this means is that the 30 day notice can run concurrently with the eviction filing. And while Virginia law is not binding on North Carolina courts, absent any contrary NC precedent, it is instructive.

Now fast forward to late last month, when on October 29, the National Apartment Association announced that “The Enterprises” (the Federal Finance Agency – and its subparts, Fannie Mae and Freddie Mac), would end their enforcement of CARES Act notice requirements. The ensuing celebration was widespread – but was it the miracle for which the industry had long hoped? Not particularly…

What this (fantastic as it may be) announcement did was to end the enforcement of a 2021 rule that mandated that covered Multifamily mortgages contain a “rider” which required the property to comply with the CARES Act’s 30 day notice period. Failure to do so could result in the property having their mortgage foreclosed upon. A frightening prospect to say the least.

So while this is a celebrated update in the continuing saga that is the CARES Act, unfortunately it is not the end. As many of you may recall, in order for a law passed by the Legislature to be amended, changed, or removed – it would take another act of the Legislature. A federal agency does not have the power or authority to do so (especially not in a post Chevron Doctrine world). So at this point, the industry must continue to deal with the Act’s notice provision unless and until Congress acts to remove it and nothing the Enterprises (or the NAA) announced does anything to stop tenants and their attorneys from raising noncompliance with the CARES Act as a defense to eviction actions

While this is likely not the news you had hoped for after reading the NAA’s update after over 5 years of dealing with the CARES Act, all is not lost. The momentum seems to be moving in a positive direction and the NAA and other groups continue their advocacy into seeing a possible future where the 30 day notice requirement is…finally…repealed.

In the meantime, should you have any questions related to anything contained in this Legal Update, please be sure to reach out to your attorneys.

*The information provided in this article does not, and is not intended to, constitute legal advice; instead, all information in this article is for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information. Viewers of this material should contact their attorney to obtain advice with respect to any particular legal matter. No viewer of this material should act or refrain from acting on the basis of information in this presentation without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.  Use of, and access to, this article does not create an attorney-client relationship between the reader and Brownlee Whitlow & Praet, PLLC, Loebsack & Brownlee, PLLC, or any contributing law firms. All liability with respect to actions taken or not taken based on the contents of this article are hereby expressly disclaimed.