CDC Moratorium on Evictions

President Trump has issued a directive authorizing the CDC to stop the eviction of some renters effective immediately through the end of 2020, citing public health threats during the pandemic. Under the CDC Agency Order, a landlord “shall not evict any covered person from any residential property in any jurisdiction to which this Order applies during the effective period of the Order.”

In order to qualify as a “covered person”, the tenant, lessee or resident of a residential property must provide a declaration under penalty of perjury to their landlord, the owner of the residential property, or other person with a legal right to pursue eviction or a possessory action. The Declaration must state that:

  1. The individual has used best efforts to obtain all available government assistance for rent or housing;
  • The individual either (i) expects to earn no more than $99,000 in annual income for Calendar Year 2020 (or no more than $198,000 if filing a joint tax return), (ii) was not required to report any income in 2019 to the US IRS, or (iii) received an Economic Impact Payment (stimulus check) pursuant to Section 2201 of the CARES Act;
  • The individual is unable to pay the full rent or make a full housing payment due to substantial loss of household income, loss of compensable hours of work or wages, a lay-off, or extraordinary out-of-pocket medical expenses (which is defined as any unreimbursed medical expense likely to exceed 7.5% of one’s adjusted gross income for the year);
  • The individual is using best efforts to make timely partial payments that are as close to the full payment as the individual’s circumstances may permit, taking into account other nondiscretionary expenses; and
  • Eviction would likely render the individual homeless – or force the individual to move into and live in close quarters in a new congregate or shared living setting – because the individual has no other available housing options.

Each adult listed on the lease or housing contract must complete and submit the declaration

The Act does not relieve an individual from the obligation to pay rent, make a housing payment, or comply with any other obligation that the individual may have under a tenancy, lease or similar contract. Landlords are not prohibited from charging or collecting fees, penalties, or interest as a result of the failure to pay rent under the terms of the applicable lease.

A “covered person” may still be evicted for reasons other than not paying rent.

A person or organization violating the Order may be subject criminal sanctions.

If you have questions about evictions in North Carolina, please contact Law Firm Carolinas to speak with one of our attorneys.

Click here to read the CDC Agency Order in its entirety: https://s3.amazonaws.com/public-inspection.federalregister.gov/2020-19654.pdf

LitigationReal Estate