The National Apartment Association (NAA) is leading the rental housing industry’s advocacy to eliminate any ambiguity that the federal CARES Act’s notice to vacate requirement ended, as Congress intended, in 2020. In addition to longstanding and bipartisan advocacy in both chambers of Congress, efforts continue across federal agencies to urge withdrawal of rules, guidance and notices that enshrine this temporary, federal extension of notice as permanent and the issuance of legal guidance affirming its termination.
Background
In March 2020, Congress passed the CARES Act, imposing a temporary 120-day moratorium on evictions due to nonpayment of rent for federally-backed and federally-assisted housing. The moratorium included what should have been a temporary, 30-day extension of states’ required notice procedure prior to filing for eviction. Also known as a “notice to vacate”, states’ required notice is 6 days on average. Due to a drafting error in the legislation, however, this temporary emergency measure has remained in place long past the moratorium’s expiration. It remains a disputed issue and contributes to the backlog in courts today.
Because of ambiguous language in 15 U.S. Code § 9058 (c), the Biden administration continued to enforce this requirement for covered housing contrary to Congressional intent that it terminated in 2020. Now, documentation from federal agencies is being used as evidence in court to challenge housing providers who did not provide 30-days’ notice in this subset of eviction cases, instead of states’ established notice procedure, or the local equivalent, which should apply uniformly to all rent-related disputes.
Tenant protections in states’ landlord-tenant and eviction laws remain unaffected by this change to federal policy. Entirely separate from notice to vacate requirements, renters receive notice guaranteed by state law prior to the execution of an eviction order, and they can continue to avail themselves of legal avenues to avoid eviction.
Regulatory Efforts
NAA is encouraging agency heads across the Trump Administration to rescind, withdraw or eliminate rules that inaccurately interpret the requirement contrary to Congressional intent.
-
Rescind U.S. Department of Housing and Urban Development (HUD) Final Rule, 30-Day Notification Requirement Prior To Termination of Lease for Nonpayment of Rent, RIN 2501-AE09. HUD mandated a 30-day notice before lease termination due to nonpayment of rent in Project Based Rental Assistance (PBRA) properties. This rule makes the flawed CARES Act notice procedure permanent for some HUD-assisted housing, setting a dangerous precedent for federal interference into states’ authority. HUD should rescind this rule to reduce the financial risk for housing providers and renters.
-
Rescind US Department of Agriculture Rural Housing Service (RHS) Final Rule, 30-Day Notification of Nonpayment of Rent in Multi-Family Housing Direct Loan Programs, RIN 0575-AD25 RHS issued a final rule to amend its regulations for the Multi-Family Housing Direct Loans and Grants Programs to require that Section 515, 514, and 516 Multi-Family Housing program borrowers provide tenants with at least 30 days’ notice prior to a lease termination or eviction action for nonpayment of rent, which the Agency asserts as statutorily required by the CARES Act. USDA/RHS should rescind this rule to reduce the financial risks to rural housing providers and their residents due to continued enforcement of this policy.
-
Withdraw FHFA’s CARES Act Notice Directive In its capacity as conservator of Fannie Mae and Freddie Mac and without the opportunity for public comment, the Federal Housing Finance Agency (FHFA) unilaterally required the Enterprises to enforce its directive arguing that multifamily borrowers have a strict obligation to adhere to the CARES Act 30- day notice requirement as part of the terms of their loan documents. FHFA should withdraw this directive immediately.
-
Eliminate FHFA’s 2025 Scorecard Requirement FHFA should also withdraw its 2025 Scorecard requirement which sets the expectation that the Enterprises must “[e]nhance resident-centered practices, such as tenant protections, at Enterprise-backed multifamily properties”. Pursuit of federally mandated landlord-tenant requirements, including notice to vacate requirements, conflict with states’ established laws to protect both parties to leasing transactions and convolute housing providers’ compliance.
-
Clarify that the CARES Act notice to vacate requirement is no longer in effect for FHFA, HUD & USDA Covered Housing The Federal Housing Finance Agency (FHFA), U.S. Department of Housing and Urban Development (HUD) and USDA’s General Counsels should issue a legal opinion clarifying that the CARES Act 30-day notice requirement ended and enforcement actions should not be taken against covered properties.
Congressional Action
Earlier this year, NAA – working alongside partners from across the rental housing industry, collaborated with lawmakers to secure the introduction of the Respect State Housing Laws Act (S. 470/H.R. 1078) in both the U.S. House and Senate. The bill was reintroduced by Representatives Barry Loudermilk (R-Ga.-11) and Vicente Gonzalez (D-Texas-34) and Senators Bill Hagerty (R-Tenn.) and Cindy Hyde-Smith (R-Miss.).
“Though evictions are a measure of last resort, this necessary legal process is thoroughly regulated at the state and local levels, and the federal government’s intrusion continues to cause confusion and operational challenges for housing providers and renters that are not without consequence,” NAA and the National Multifamily Housing Council said in a joint statement. “This prolonged disturbance to operations ultimately harms housing affordability and availability, as 93 cents of each rent dollar pays the expenses that keep communities running.”
The Respect State Housing Laws Act is a top priority bill for NAA in the 119th Congress. It was a primary feature of NAA’s annual advocacy conference and lobby day, Advocate, which united more than 800 rental housing professionals on Capitol Hill in March. Our advocacy will continue to ensure it crosses the finish line.