Relying on a public health law intended to prevent the spread of an illness, the Trump administration said yesterday that it is implementing a national four-month moratorium on residential evictions, USA Today reported. The moratorium, announced by the Centers for Disease Control and Prevention, was the latest measure by the administration to get a handle on the economic fallout from the coronavirus pandemic absent an agreement with Congress on a more far reaching package that would have the force of law. To stop evictions, health officials are relying on the 1944 Public Health Service Act, which gives the administration broad quarantine powers. The moratorium, which will run through Dec. 31, applies to individuals earning less than $99,000 a year and who are unable to make rent or housing payments. The move drew a mixed reaction from housing experts: praise that it would potentially keep tens of millions of Americans in their homes but concern that it only moves back a deadline, potentially setting people up for evictions next year because they would continue to accrue back payments during the pause in evictions. It’s also not clear how the move affects landlords, who must continue to make their own payments. Read more.
In related news, California’s legislature passed a bill late on Monday granting renters who are financially affected by the COVID-19 pandemic a reprieve from evictions, which were set to resume today when prior relief expires, the Wall Street Journal reported. The bill passed with supermajorities in both houses of the Democratic-controlled legislature in the final hours of its two-year legislative session and addresses what advocates had said was a looming wave of evictions. Democratic Gov. Gavin Newsom, who crafted the compromise with legislative leaders, tenant advocates and landlord groups last week, immediately signed the bill into law. It takes effect immediately. Backers say it will help keep California’s 17 million renters housed as the state’s economy remains largely closed during the pandemic. The measure would forestall until Feb. 1 evictions for tenants who declare that they have lost income due to the impact of COVID-19 on the economy. All back rent owed by the tenant from March 1 through Aug. 31 of this year would be converted to consumer debt and couldn’t be used as grounds for eviction. To receive continued protection, a tenant would have to pay at least 25 percent of their cumulative rent between Sep. 1 and Jan. 31. The remaining balance would also become consumer debt, which landlords could pursue in small-claims court starting March 1 of next year. Even the bill’s strongest supporters said it was only a stopgap that leaves tenants treading water financially unless and until the federal government provides additional stimulus funds to keep families and landlords afloat. Read more. (Subscription required.)
