Landlords Frustrated As CDC Extends Its Eviction Moratorium

July 4 may be independence day, but landlords were counting on June 30 to end the Covid-related housing eviction moratorium.

Now they have another month to wait. The Centers for Disease Control announced an extension through July of the moratorium, although the agency noted, “this is intended to be the final extension of the moratorium.”

That is some but little consolation to investors in and operators of resident rental properties.

“The continuation of a nationwide, one-size-fits-all, federal eviction moratorium is out of step with the significant progress made in controlling COVID-19 and restoring the economy,” according to a statement from the National Multifamily Housing Council. 

“Multifamily landlords and managers have operated throughout the pandemic with a flexible and compassionate approach for residents in need,” Marcie Williams, president of RKW Residential, which oversees more than 25,000 apartment units in six states, told GlobeSt.com in an emailed statement. “This has obviously been an extremely trying year-plus for the entire sector, with the lack of clarity on when the moratorium will ultimately end. Hopefully, the CDC’s announcement that this is expected to be the final extension gives the industry the clarity it needs to make difficult decisions and move forward. I do expect landlords to continue working with residents with the ultimate goal of avoiding evictions whenever possible.”

The pressure has been difficult for many landlords, especially smaller ones. Paul Getty, CEO of First Guardian Group, which provides services for real estate investors, including many “mom and pop owners,”, tells GlobeSt.com, “These are the people that have to pay the bills and in some cases are close to bankruptcy because the tenants are not paying. What’s being reported to me is that the tenants in many cases are doing well. They’re using covid excuses for not paying rent. That is creating a lot of pressure on many of our clients to sell properties.”

While there has been relief money available to pay rents and keep tenants in buildings, access has not been simple. “That problem is an easier problem to digest if you’re a larger property owner,” Getty says. Greater resources allow those owners and operators to understand and manage the government filings more easily. Smaller owners may not know how to file for help with their tenants, or even that money is available.

In some areas, the extension of the moratorium won’t be the last hurdle for landlords. “In addition to being precluded by the CDC moratorium from pursuing the eviction of ‘covered persons,’ New York landlords are also prohibited from pursuing eviction of tenants who submit a hardship declaration, as governed by New York legislation, which stays eviction proceedings until August 31,” Michelle P. Quinn, a partner with Gallet Dreyer & Berkey, tells GlobeSt.com.

“Although the recently launched Emergency Rental Assistance Program is intended pay tenants’ rent arrears, the implementation of the program is already hampered by the sheer volume of applications, causing the processing time to be two months or more, during which time, again, landlords are not getting paid rent but cannot evict,” Quinn continues.  “The burden of the pandemic continues to rest heavily on landlords, many of whom are small businesses themselves.”