An eviction ban was first put into place when the Trump administration suspended the possibility of eviction for those who suffered job loss due to the coronavirus pandemic along with the CDC also announcing it as an emergency action that was necessary under law. Since the placement of the original ban in September of 2020, a new eviction ban has been put into place but will expire early this fall which is promising for landlords and property owners.
Understanding The Current Eviction Ban
Based on the Public Health Service Act of 1944, the Department of Health and Human Services has the authority to declare and respond to public health emergencies and aid in controlling communicable diseases. CDC is a part of the Department of Health and Human Services which allows them to make authoritative decisions during this current pandemic. Based on the concern of transmission of Covid-19 the CDC announced eviction bans as an emergency action necessary under law. Since the original ban, CDC has extended the eviction bans for counties with high transmission Covid-19 numbers until October 3rd 2021 whereas the old bans applied to those who lost their jobs due to the pandemic if they could provide proof that their individual or joint income would not prevent them from becoming homeless. However, under Supreme Court ruling, this second eviction was thrown out but for some, local and state government has decided to continue relief programs for tenants.
Which States Are Still Honoring Eviction Bans
Many states are still in need of assistance as Covid-19 continues to cause spikes in case numbers particularly in areas with the least amount of resources and defenses. States like Louisiana have a huge population of people who are struggling to keep afloat. Here is a current list of areas that are continuing to offer extensions of the eviction bans during this pandemic crisis.
Illinois- Honoring extension until October 3rd
New Jersey- Those applicable based on low income
New Mexico- Provided proof in court of inability to pay rent
New York- Extended through January 15th 2022
Washington- Extension through September 30th 2021
What Other Programs Offer Tenant Relief
Freddie Mac and Fannie Mae– This government supported mortgage buyers program prohibits landlords of multifamily properties with these specific types of mortgages from evicting tenants until September 30, 2021.
Emergency Rental Assistance– This dashboard leads to hundreds of sites that may be currently offering assistance
Benefits.gov– Resource help center
Consumer Financial Protection Bureau– specific to renters
State Specific Covid-19 Resources– list of resources per state
Private and Non-Private Covid Related Resources– organizations providing assistance
So What Does This Mean For Property Owners And Landlords
Property owners and landlords have not been as fortunate when it comes to getting the assistance they need. There seems to have been a faster transaction for tenants needing assistance versus landlords and property owners even though over 50 million was intended to be allocated and dispersed to them. This has been partly due to the overwhelming process of paperwork that renters are required to fill out if they are in need of assistance which allows landlords to then get paid. Unfortunately, much of that paperwork was never finished and possibly never started as other relief funds were distributed to tenants in need of assistance. The PPP and EIDL were two of the common relief programs available to tenants giving them the support they needed but neither of these programs were available to property owners or landlords. Unless renters filled out all the paperwork for rental assistance, landlords were at a loss. In a study issued by the Urban Institute, an estimated 8.4 billion to 52.6 billion is averaged as back rent.
With the end of eviction bans drawing near, property owners and landlords are starting to see the light at the end of a very long tunnel. In the meantime, encouraging and assisting tenants to file their rental assistance paperwork could prove to get landlords and property managers their paychecks sooner than later. The Covid Relief Program is a 2.3 trillion dollar package with only 3 billion dollars of that fund having been currently distributed to landlords as of August 1st. Most would say that’s a lot of money still sitting there waiting to be used.