Eviction - Federal CARES Act Notice
Overview
In March 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which included a temporary 120-day moratorium of evictions due to nonpayment of rent. This was applicable to federally-backed and federally-assisted housing, impacting approximately 40% of the U.S. rental housing market.
The CARES Act also instituted what should have been a temporary, federal notice procedure, requiring at least 30-days’ notice prior to filing for eviction due to nonpayment in covered housing (e.g., Section 8 and Fannie Mae or Freddie Mac-backed housing), while states’ established notice procedure is 6 days on average.
Because of ambiguous language in the statute, the Biden Administration enforced the COVID-era eviction notice requirement for covered housing contrary to Congressional intent that the requirement was a temporary, emergency measure.
During the Biden Administration, the Department of Housing and Urban Development (HUD) also adopted a Final Rule, making the 30-day notice permanently required for properties receiving project-based rental assistance (PBRA) and setting a dangerous precedent for federal interference into states’ authority.
Industry Position
Federal policymakers must eliminate any ambiguity in federal laws and regulations about the requirement’s expiration in 2020. The National Apartment Association (NAA) urges Congress to pass the Respect State Housing Laws Act (H.R. 1078/S. 470), striking the temporary, federal notice language from the CARES Act.
Additionally, Congress or the Trump Administration should rollback the HUD rule through available channels. This action is necessary to reduce financial strain on housing providers and protect HUD-assisted renters in PBRA housing who are increasingly unable to repay mounting debt as a consequence of enforcement.
As an Owner or Operator, How Does this Affect My Business?
The federal CARES Act notice remains a contested issue in already-backlogged courts today nearly five years after its expiration in 2020. This confusion leads to more lost, potentially unrecoverable rent for housing providers, while impacted renters become increasingly unable to repay mounting rent debt. This situation is particularly damaging for “mom-and-pop” and affordable housing providers, and ultimately hurts residents’ long-term housing opportunities.
Ninety-three cents of every rent dollar cover necessary operational expenses. Based on an NAA member survey, the average cost of eviction is $6,767, inclusive of legal fees, court fees, lost rental income, turnover costs and marketing costs. Even a small imbalance of income and expenses can upend an apartment community’s financial health, and the economic impacts touch housing providers and residents alike.
When the Respect State Housing Laws Act eliminates the notice language from the CARES Act statute, tenant protections in states’ landlord tenant and eviction laws remain unaffected. Renters can continue to avail themselves of legal avenues to avoid eviction. Learn more about the eviction process for nonpayment.
Contact Information
To learn more about this issue, please contact NAA's Public Policy team.