Eviction Moratorium
Sunday, August 15th, 2021
As the COVID pandemic overtook every aspect of our world in 2020 and into 2021, and people’s livelihoods were put on hold the federal and state government quickly established policies to mitigate evictions and created programs to assist with rent and forbearance for mortgage payments. The goal of the federal and state moratoriums was clear – protect people from becoming homeless, albeit a renter or a homeowner. The impact of eviction is multifaceted and obviously has a negative effect on every aspect of a person’s life as well as their families. Now more than halfway through 2021 the eviction moratorium rollercoaster continues its long, twisting ride.
However, the programs initiated last spring were cumbersome and complicated. State and local government, along with lenders and the staff of local community based organizations worked tirelessly trying to assist those in need, while facing organizational and staffing issues, as well as their own personal challenges.
The eviction moratorium saved millions of households from the tragic consequences of eviction, but it inadvertently created economic challenges for property owners (landlords) of rental buildings. When the rent is not paid, then the property owner cannot pay their monthly expenses and obligations, including their mortgage, taxes, insurance, utilities, and maintenance. Small building owners with two to ten apartments or even up to 50 units have disproportionately felt the impact of the moratorium. These are the “mom and pop” operators in many of our communities here in the Hudson Valley.
Homeowners were not held harmless from the economic fallout caused by the Pandemic by any means. Lenders initiated mortgage forbearance programs as they braced themselves for the high likelihood of their borrowers missing payments. There were programs established by lenders to allow eligible homeowners to place a pause on their payments much like renters pausing their monthly rent.
Regardless of being a renter, landlord, or homeowner – the rent and the mortgage will come due at some point. To mitigate this fiscal crisis and millions of potential evictions of renters, the federal government committed billions of dollars of assistance and established the Emergency Rent Relief Program (ERAP). The ERAP has limitations, but it is a valuable resource for renters across the country.
- The ERAP program in New York State is administered by the Office of Temporary and Disability Assistance (link – OTDA).
- The US Treasury has a number of best practices on their website, which can be found here.
The rent relief program comes with many regulatory requirements that must be followed and as a result, there have been delays in getting the funds to the people in need. During the first week of August, the CDC placed a new ban on evictions until October 3, 2021, which provides additional time to mitigate eviction as the Delta variant has become more prevalent. However, it is not a “blanket ban.” As a public health measure, the eviction moratorium is targeted in areas with a high prevalence (substantial or high levels) of the Delta variant- very confusing at best. This ban has provided additional time to get relief to the renters and further increase the vaccination rate, but, again, is it enough time? Lastly, the ban on evictions also prevents people from entering densely occupied shelters and other congregate facilities, which are already overburdened.
Of course, there has been a number of issues in terms of whether the eviction moratorium is legal and who or what body of government has the authority to extend the deadlines, or establish new bans. Those legal battles will continually be brought forward in the near term and will likely continue well into the next year or so.
More Resources
On August 5, 2021, the Urban Institute released their e-newsletters, Evidence Roundup: Evictions Matter, which is a robust set of five reports that clearly describes the consequences of eviction. Here are the links to the five report:
A Closing Thought
There was a housing crisis prior to the Pandemic, especially for very low, low-, and even moderate income renters. Quality rental properties are in short supply and the single-family home market is out of reach for many would be homebuyers.
When examining the extraordinary complexities of the housing market – evictions have certainly been one of the darkest realities. The rent relief programs offer some light as they are designed to cover back rent, mitigate eviction, and make property owners whole, this is not a long-term solution. Furthermore, the moratorium does not address the fundamental housing conditions that have been in play for decades.
Solving these complex challenges is not for the faint of heart, as many difficult decisions must be made, here are a few suggestions. The region needs to build more housing at all levels of the market. We must attract industries that offer higher paying jobs with livable wages. Finally – I would encourage compromise between landlords and renters to appreciate challenges faced by each party as there is no clear winner with eviction.
This rollercoaster ride is not done and by the time you are reading this blog, there will likely be more changes in policy, programs, and the legal challenges. Stay tuned….
