Eviction Moratorium due COVID-19

On March 27, 2020, Congress passed, and the President signed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) into law. The law includes immediate protections for tenants including a federal eviction moratorium for tenants with certain types of tenancies and living in certain types of housing. 

The eviction moratorium restricts certain residential landlords from filing new eviction actions for non-payment of rent, and also prohibits “charg[ing] fees, penalties, or other charges to the tenant related to such nonpayment of rent.” The 120-day federal moratorium also provides that a landlord (of the particular covered property) may not evict a tenant after the moratorium expires except after 30 days’ notice to the tenant—which may not be given until after the day moratorium period. 

What the New Federal CARES Act Eviction Moratorium Means for Landlords 

  1. The Act only applies to residential properties.
  2. A landlord who has a federally backed mortgage on the property is barred from evicting a tenant for non-payment of rent.  Please note that an estimated 90% of mortgages in the US are Federally backed.
  3. A landlord who participates in a federal program, such as section 8, is barred from evicting a tenant for non-payment of rent.
  4. A landlord who is barred from evicting under the Act should not serve a rent demand notice and cannot charge late fees or other penalties.
  5. A landlord who owns the property free and clear and who does not participate in any federally backed program CAN evict a tenant.
  6. A landlord who wants to evict for reasons other than non-payment of rent, such as lease violation, holdover tenancy, and termination of month to month tenancy, will still be able to proceed with an eviction.
  7. After the Act expires on July 25, 2020 the landlord must serve a 30 day rent demand notice, instead of the standard 3 day notice, on the tenant.

Written by attorney Jerron Kelley from the Law Firm of Kelley & Grant, P.A.

You can also watch this very informative interview with Jerron Kelley & Dan DeMott of Home Source, Inc.