CDC Issues New Eviction Moratorium

On August 3, 2021, the Centers for Disease Control and Prevention (“CDC”) issued a new moratorium on residential evictions for nonpayment of rent, which may prohibit landlords from pursuing evictions against tenants who have signed a declaration stating they cannot pay rent. This is the latest iteration of a series of eviction moratoria that began in March 2020.

Specifically, the CDC’s new moratorium extends to any person who signs a declaration attesting to six separate things: 1) the individual has used best efforts to obtain governmental assistance for rent; 2) the individual has earned no more than $99,000 in 2020 or 2021, or has received a stimulus check; 3) the individual is unable to pay rent due to a loss of income or incurrence of extraordinary medical expenses; 4) the individual is using best efforts to make partial rent payments on a timely basis; 5) the individual would likely be rendered homeless or be forced into a shared living setting if evicted; and 6) the individual resides in a county experiencing substantial or high rates of COVID-19 infections. Persons violating the moratorium are potentially subject to criminal penalties of $100,000 or one year in jail; organizations violating it may be subject to a fine of $200,000 or $500,000 if the violation results in a death.

The moratorium order does not apply to evictions based upon criminal activity, threats to health and safety of other residents, damage to property, violations of health codes, or violations of other contractual obligations.

This moratorium differs from its past iterations in that it requires the tenant to live in a county designated by the CDC as experiencing substantial or high rates of COVID-19 transmission. However, as of August 1, 2021, over 80% of US counties and 90% of US tenants, met this standard, so the moratorium still has a broad scope. The CDC has made a county-level COVID-19 transmission search available here: https://covid.cdc.gov/covid-data-tracker/#county-view.

This newest order is set to expire on October 3, 2021, but the CDC has expressed the possibility of extending or modifying it depending on COVID-19 transmission levels.

Notably, the notification rule promulgated by the Bureau of Consumer Financial Protection (“CFPB”) under the Fair Debt Collection Practices Act does not appear to apply to this new eviction moratorium as that rule was limited to the former eviction moratorium issued by the CDC that expired on July 31, 2021, and as of the date of this alert, the CFPB has not issued a new rule.

Various landlord groups have challenged the validity of this moratorium, so you should speak with counsel before taking action based on the newest moratorium.

If you have questions concerning this new moratorium, its potential applicability to you or your business, or strategies for compliance, please reach out to the Ice Miller COVID-19 Task Force for more information.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.