RE/MAX AROUND ATLANTA
  • Home
  • RMAA HUB
  • Events
  • Local Service Providers
    • Attorney Partners
    • Lender Partners
    • Home Cleaning Services
    • Home Inspection Companies
    • Home Staging Sevices
    • Home Warranty Companies
    • Insurance
    • Photography
    • Estate Sales/Clean-outs
    • Property Management
    • Repair Services
    • Security Systems
  • OUR TEAM
  • SMART MOVE PROGRAM
  • Online Payments
  • BROKER CORNER
  • Locations

BROKER CORNER

Evictions during covid

5/29/2020

0 Comments

 
Picture
Notice to Vacate and Eviction 120 Day Moratorium – CARES Act

Covered Tenants Cannot be Forced to Vacate a Rented Property for Non-Payment Until August 23, 2020.
Eviction and Rental Payment Protections CARES Act Section 4024(b) prohibits landlords of certain rental “covered dwellings” from initiating eviction proceedings or “charging fees, penalties, or other charges” against a tenant for the nonpayment of rent. These protections extend for 120 days from enactment..
 (March 27, 2020). Section 4024(c) requires landlords of the same properties to provide tenants at least 30 days-notice before they must vacate the property. It also bars those landlords from issuing a notice to vacate during the 120- day period. In contrast to the eviction and late fee protections of Section 4024(b), which are expressly limited to nonpayment, Section 4024(c) does not expressly tie the notice to vacate requirement to a particular cause. Thus, Section 4024(c) arguably prohibits landlords from being able to force a tenant to vacate a covered dwelling for nonpayment or any other reason until August 23, 2020 (i.e., 120 days after enactment, plus 30 days after notice is provided). Section 4024(b)’s and (c)’s protections, however, do not absolve tenants of their legal responsibilities to pay rent. Tenants who do not pay rent during the eviction grace period may still face financial and legal liabilities, including eviction, after the moratorium ends.

What properties does the CARES Act Cover? 
The CARES Act protections apply to rental units in properties: (1) that participate in federal assistance programs (like Section 8), (2) are subject to a federally backed mortgage loan, (Fannie, Freddie, VA and FHA) or (3) are subject to a federally backed multifamily mortgage loan (more than 5 units).  So unless the landlord owns the property outright or has a private mortgage, the Landlord is likely subject to this restriction.

Landlord Relief Programs
If tenants do not make rent payments during the moratorium, there financial ramifications for landlords and tenants. Relief programs established under the CARES Act and other government-provided assistance could mitigate the financial impact of missed rent payments. Landlords, for example, may be eligible for mortgage forbearance or small business loans and grants provided under different provisions of the CARES Act. Tenants may also be eligible for the act’s direct payments to individuals and enhanced unemployment compensation. These programs might ease the financial burdens of some landlords and tenants, but are unlikely to offset all financial burdens stemming from the pandemic. 

The CARES Act does not address how landlords can respond to missed payments after the moratorium ends. While the act bars landlords from charging late fees and other penalties because of a tenant’s nonpayment during the 120 days, whether or not late fees and interest on rental payments are prohibited from accruing during the grace period and being charged after it ends is unclear. After the 120-day period, landlords presumably could move to evict tenants who did not meet their rental obligations, subject to the CARES Act’s 30-day notice requirement and consistent with state and local laws. 

This information was largely adapted from a document prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress. 
0 Comments



Leave a Reply.

    RMAA

    Real Estate News, Brokers Blog & More

    Categories

    All
    Broker's Corner
    Mortgage Minute

    Archives

    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    July 2020
    June 2020
    May 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019

    RSS Feed

RE/MAX AROUND ATLANTA
© COPYRIGHT 2023. ALL RIGHTS RESERVED.
  • Home
  • RMAA HUB
  • Events
  • Local Service Providers
    • Attorney Partners
    • Lender Partners
    • Home Cleaning Services
    • Home Inspection Companies
    • Home Staging Sevices
    • Home Warranty Companies
    • Insurance
    • Photography
    • Estate Sales/Clean-outs
    • Property Management
    • Repair Services
    • Security Systems
  • OUR TEAM
  • SMART MOVE PROGRAM
  • Online Payments
  • BROKER CORNER
  • Locations