On March 5, 2021 a federal judge struck down the current moratorium on evictions, as enacted by the CDC, and instantly created confusion regarding the liability of back rent and the potential of eviction for failure to pay rent as related to Covid related job loss. While the news is fairly fresh, without question landlords and property managers will have concerns, and a best practice remains to work with a well-qualified third-party tenant screening agency.
On Tuesday, March 5, 2021, a federal judge put the current federal eviction moratorium on hold, stating the CDC does not have the authority to impose such an action. Certainly landlords and property managers should take immediate note of this action, as a call-to-action to review tenant screening policies, and a best practice is to work with a third-party tenant screening agency to remain compliant with law.
News outlets across the country and around the world announced the halt of the CDC enacted federal eviction moratorium.
From USAToday.com on May 5, 2021:
A federal judge has thrown out a national moratorium on evictions enacted last year to help Americans who have fallen behind on their rent during the coronavirus pandemic.
U.S. District Judge Dabney L. Friedrich of the District of Columbia ruled Wednesday the federal government overreached in enacting the ban. usatoday.com/story/news/politics/2021/05/05/judge-strikes-down-covid-moratorium-eviction-rental-properties/4958924001/
It’s too soon to see how the cessation of the federal moratorium will affect the rental market, but landlords and property managers will certainly take note.
From Aljazeera on May 5, 2021:
The National Association of Realtors welcomed the judge’s decision, saying a better solution would be to help tenants pay rent, taxes and utility bills.
“With rental assistance secured, the economy strengthening and unemployment rates falling, there is no need to continue a blanket, nationwide eviction ban,” the group said.
As part of a $1.9 trillion COVID-19 relief bill passed earlier this year, the US Congress provided $30bn in rental and housing assistance for people at risk of eviction or losing their homes. aljazeera.com/news/2021/5/5/us-judge-throws-out-pandemic-related-moratorium-on-evictions
Seemingly the court took into consideration what the moratorium attempted to do.
From ABC11.com on May 5, 2021:
“The Court recognizes that the COVID-19 pandemic is a serious public health crisis that has presented unprecedented challenges for public health officials and the nation as a whole. The pandemic has triggered difficult policy decisions that have had enormous real-world consequences. The nationwide eviction moratorium is one such decision,”
“It is the role of the political branches, and not the courts, to assess the merits of policy measures designed to combat the spread of disease, even during a global pandemic,” …. “The question for the Court is a narrow one: Does the Public Health Service Act grant the CDC the legal authority to impose a nationwide eviction moratorium? It does not.” abc11.com/cdc-eviction-moratorium-federal-judge-rules-cannot-issue-moratoriums-evictions-covid/10584661/
Landlords and property managers should take note when big news affects their business, and this is big news. Reviewing tenant screening policies should be an absolute and a best practice remains working with a well-qualified third-party tenant screening agency.
To learn more about the consequences of a federal judge striking down the national eviction moratorium and what this means to renters and landlords in the USA read recent TenantScreeningUSA.com press release: Recent Ruling Strikes Down Federal Eviction Moratorium, Creates Potential of Confusion for Renters and Landlords; Opines TenantScreeningUSA.com