A new temporary eviction moratorium extension by the CDC prevents any evictions because of missed rent payments due to the financial hardships renters are facing during the pandemic. We’ve dug into the new requirements of this recent moratorium extension to help you understand the details.
The Center for Disease Control (CDC) just instated its third extension to the nationwide eviction moratorium, working to protect roughly 11 million Americans who are behind on rent due to the COVID-19 pandemic.
Here’s everything you need to know about what the CDC eviction moratorium extension is, who is protected, and how to get access to federal rental assistance aid for help.
What Is the CDC Eviction Moratorium Extension?
This temporary eviction moratorium extension by the CDC prevents any evictions because of missed rent payments from occurring due to the financial hardships renters are facing during the pandemic.
The extension will last until October 30, 2021. During that time, there can be no evictions because a renter is unable to pay rent, pay their late rent fees, penalties, or interest, so long as said renter meets the eviction protection requirements.
The reason for extending the moratorium is, in part, to give more landlords and renters time to apply for and access federal Emergency Rental Assistance program funds set aside to assist renters in paying their monthly rent and utility bills.
Where Does the Eviction Moratorium Extension Apply?
According to the CDC order, the extension is meant to “temporarily halt evictions in the hardest-hit areas.” In line with this, the moratorium will only be effective in counties with a “substantial” or “high” level of COVID-19 transmission as determined by the CDC. According to the agency, a substantial transmission rate is more than 50 new COVID-19 cases per 100,000 people in the past seven days. A high transmission rate is more than 100 new cases per 100,000 people in the past seven days. This is currently 80% of counties across the U.S.
The moratorium will be lifted from individual counties after their transmission levels are below a “substantial” rating by the CDC for 14 consecutive days. If there is another increase in cases in said county, the order will be reinstated.
This eviction moratorium extension is not applicable in areas with the same or greater levels of COVID-19 eviction protections, nor does it prevent local and state governments from instating more eviction protections.
Who Does the Extension Protect?
Currently, this moratorium protects roughly 90% of renters in the U.S. Those who are considered “covered” renters will need to provide their landlords with a signed declaration stating their qualification for eviction protection.
- A renter is considered covered by the extension if they are an individual who: 1. Earned less than $99,000 (or $198,000 if filed jointly) in 2020 or expect to make that amount in 2021, or an individual who was not required to provide an income to the IRS in 2020 or received a stimulus check during the pandemic.
- Is unable to pay their full monthly rent because of a loss of employment, of income, or a decrease in income due to the pandemic, or if they are facing extraordinary expenses that need to be paid.
- Are continuing to make partial rent payments despite financial hardships.
- Would be homeless or would have to move into close living conditions (move in with family, friends, to a shelter or other housing situation) if they were to be evicted.
- Resides in a county with a “substantial 9” or “high 10” COVID-19 transmission rating by the CDC.
What Evictions Are Allowed During the Moratorium?
Landlords can still evict tenants during the moratorium period, so long as said evictions are not because of a failure to pay rent. Evictions that are allowed during this moratorium include those that involve:
- Criminal activity on the rental property.
- Threatening the health and safety of other residents.
- The damaging of the property.
- Violating any building codes or health and safety regulations.
- Violating any lease obligations other than making timely rent payments or other similar housing payment obligations.
What Are the Penalties for Landlords Who Ignore the Moratorium?
The Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) are monitoring evictions and will enforce the moratorium where necessary. For landlords caught violating the eviction moratorium, there will be a penalty of up to $100,000, one year in prison, or both. If the eviction results in the renter’s death, the fee will increase up to $250,000, a year in prison, or both.
Housing organizations or companies caught violating the moratorium will be charged a fine of up to $200,000 per violation and $500,000 if the violation resulted in the death of the renter.
What About Evictions Started Between August 1st and 3rd?
Because there was a multi-day break between the end of the last CDC eviction moratorium and this current eviction moratorium, any eviction filings that were initiated between August 1 and 3 of 2021 are covered by the new extension. However, the current moratorium will not protect those eviction filings that were finalized during that same time period.
Learn More About the Emergency Rental Assistance Program
The best way to lessen your financial hardships as a renter or landlord is to apply for your local COVID-19 Emergency Rental Assistance Program. Made up of $46 billion in federal aid funding, these ERA program distributors — such as the Local Rental Owners Collaborative (LROC) in Southern Los Angeles — are designed to help eligible renters pay their monthly rent and utility bills for up to 12 months. Learn more about ERA funding, eligibility requirements, and how it can help you in our latest FAQs article.
For more information updates and other helpful rental investors tools Click Here. We offer coronavirus-specific updates and resources for landlords, data from our survey findings, and details of our work with Urban Institute and other like-minded organizations that are looking at a variety of issues the rental industry is facing.