A new nationwide eviction moratorium has been ordered through the Centers for Disease Control (CDC) to halt residential evictions through the end of December.
However, the new ban on evictions of tenants does not offer any relief for landlords to be able to recoup unpaid rent.
“We are disappointed that the administration has chosen to enact a federal eviction moratorium without the existence of dedicated, long-term funding for rental and unemployment assistance,” said National Multifamily Housing Council President Doug Bibby in a statement.
“An eviction moratorium will ultimately harm the very people it aims to help by making it impossible for housing providers, particularly small owners, to meet their financial obligations and continue to provide shelter to their residents,” Bibby said.
Owners face financial crisis
“Without direct rental assistance, rents cannot be paid, and owners face a financial crisis of their own by not being able to maintain properties and pay their mortgages or property taxes,” said National Apartment Association President & CEO Bob Pinnegar in a release.
“This action risks creating a cascade that will further harm the economy, amplify the housing-affordability crisis and destroy the rental-housing industry. This global housing crisis cannot be blamed on the rental-housing industry, nor can the industry bear the brunt of the pandemic alone. We need balanced, reasonable solutions for all Americans,” Pinnegar said.
Bibby added, “Not only does an eviction moratorium not address renters’ real financial needs, a protracted eviction moratorium does nothing to address the financial pressures and obligations of rental-property owners. Without mortgage-forbearance protections and protections from other property-level financial obligations such as property taxes, insurance payments, and utility service, the stability of the entire rental-housing sector is thrown into question.”
Moratorium decisions should be left to state and local officials
“We believe renter protections are best left to state and local officials, who better know their housing markets and can tailor protections to the varied and unique eviction laws and judicial processes across jurisdictions,” Bibby said.
At the federal level, Bibby said, “We agree with Secretary (Steve) Mnuchin, Speaker (Nancy) Pelosi and Leader (Chuck) Schumer that policymakers need to come back and negotiate a strong rental-assistance program.”
National Rental Home Council Rips National Eviction Ban
“President Trump’s eviction moratorium might work in a fantasy world. But in this one, it only kicks the problem down the road. Once the moratorium expires, renters will owe back rent for several months, and their landlords may no longer be in business, the National Rental Home Council said in a statement.
“Over half of all rental properties in the United States, 23 million, are single-family homes. Ninety-seven percent of these properties are held by “mom-and-pop” landlords, who own between one and three properties. At the end of this year, many of these landlords will have foregone rent for nine and a half months.
“It’s not quite clear how the administration expects these landlords to cover their mortgage payments, property taxes, community fees, and maintenance costs. With no corresponding ban on foreclosures, mortgage holders still can and will foreclose on landlords who can’t meet their financial obligations.
Go deeper in debt or sell
“The order leaves landlords with two grim options — go deeper into debt, or sell.
“This moratorium also capitalizes on the false narrative that landlords are lining up at the courthouse to file eviction notices. The exact opposite is true. Many landlords have created flexible payment plans, allowed tenants to access security deposits, and waived fees.
“The federal government has failed to provide genuine financial assistance to renters and landlords alike. We urge Congress and the Trump administration to change that state of affairs.
“America needs sensible, well-constructed rental assistance programs that provide immediate relief to both renters and landlords. That’s the only way to bring any sense of certainty to the rental housing market.”