Cares Act – Evictions

Recently, the world has been turned upside down at the hands of the COVID-19 pandemic. To minimize the impact of the economic shutdown, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was passed into law on March 27, 2020. Ironically, a section of the CARES Act has added additional stress to those involved in rental properties. Specifically, Sec. 4024, which places a temporary moratorium on eviction proceedings. Section 4024 of the CARES Act prohibits a landlord from commencing or proceeding with evictions for a period of 120 days (the “Moratorium”). That’s tough to swallow for those landlords who rely on the rental income for their survival.
As a landlord, it is critical to understand exactly how the Moratorium is applied. The CARES Act only prohibits evictions against those tenants of multi-family and single-family properties that:

• Have a mortgage on the real property that is (1) insured or otherwise supported by Housing and Urban Development (HUD); (2) any other federal agency; or (3) through Fannie Mae or Freddie Mac;
• Participate in the rural housing voucher program; or
• Participate in the Violence Against Women Act of 1994 (VAWA) housing program

Only those landlords with properties subject to the criteria above are subjected to the Moratorium. Such landlords will have to wait until the Moratorium is lifted on July 25, 2020 before:

• Commencing eviction proceedings;
• Charging tenants any late fees and other charges incurred as a result of non-payment of rent; and
• Serving a tenant with a 30-Day Notice to Vacate until the Moratorium is over; at which time, the tenant will then have the 30 days to vacate the property

It is important to note that the CARES Act does not require a subject landlord to make rent concessions. It is advised that such landlords (1) continue to charge rent as it becomes due; (2) inform tenants that all unpaid rent will come due at the end of the Moratorium; and (3) advise tenants of Section 4024 of the CARES Act to help them understand their rights.

Please contact Michael C. McClure at Brian Webb Legal for a consultation to determine if the CARES Act Moratorium applies to you.