Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

U.S. CDC announces new 60-day COVID-19 eviction moratorium

Published 08/03/2021, 04:14 PM
Updated 08/04/2021, 04:12 AM
© Reuters. FILE PHOTO: A "For Rent" sign is displayed in front of an apartment building in Arlington, Virginia, U.S., June 20, 2021. REUTERS/Will Dunham

By David Shepardson and Trevor Hunnicutt

WASHINGTON (Reuters) -The U.S. Centers for Disease Control and Prevention (CDC) on Tuesday issued a new 60-day moratorium on residential evictions in areas with high levels of COVID-19 infections citing the raging Delta variant after having rejected an earlier push by the White House.

The order applies to about 80% of U.S. counties that have substantial or high COVID-19 community transmission rates and covers about 90% of the U.S. population. The CDC said it will expand the protections to additional counties if they see a rise in COVID-19 cases.

"The emergence of the Delta variant has led to a rapid acceleration of community transmission in the United States, putting more Americans at increased risk, especially if they are unvaccinated," CDC Director Rochelle Walensky said in a statement. "This moratorium is the right thing to do to keep people in their homes and out of congregate settings where COVID-19 spreads."

The CDC cited survey data that 6.9 million renters were behind on their rent in June and suggested mass evictions were likely without action.

The new CDC order will protect millions of renters from eviction but is slightly more limited than a nationwide moratorium that expired Saturday at midnight, and is almost certain to face legal challenges.

On Sunday, the CDC rejected President Joe Biden's request for a new scaled-down pandemic-related moratorium, citing a lack of legal authority stemming from a recent Supreme Court decision.

Biden had urged an extension so more than $40 billion in unused money approved by Congress to help pay unpaid rent can be distributed to renters and landlords and keep people in their homes.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

More than 15 million people in 6.5 million U.S. households are currently behind on rental payments, according to a study by the Aspen Institute and the COVID-19 Eviction Defense Project, collectively owing more than $20 billion to landlords.

The National Apartment Association, with 82,600 members that collectively manage more than 9.7 million rental units last week sued the U.S. government seeking billions of dollars in unpaid rent due to the moratorium.

The group called the new eviction moratorium "an unfunded government mandate that forces housing providers to deliver a costly service without compensation and saddles renters with insurmountable debt."

A Supreme Court opinion in June suggested that legislative approval would be required to extend the moratorium. It is unclear if the court will review the new more limited moratorium differently.

Biden on Tuesday acknowledged the legal risks of moving ahead with a new moratorium but said it will probably give some "additional time" to renters as the issue makes it way through the courts.

The CDC moratorium, which was put in place in September 2020 and kept millions of people from being forced out of their homes for unpaid rent during the pandemic, was extended for another 30 days in June and officials at the time said it would be the final extension.

But with COVID-19 rates climbing, some House Democrats led by Representative Cori Bush staged a protest outside the U.S. Capitol that put pressure on the administration to reverse course and protect renters at risk.

The new moratorium will last until Oct. 3.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Senate Majority Leader Chuck Schumer and House of Representatives Speaker Nancy Pelosi, both Democrats, had urged a reinstatement of the ban after Congress was unable to do so.

"This brand new moratorium will provide time for the money allocated by Congress to flow, as it helps stop the spread of the virus which is worsening due to the Delta variant and protects families and landlords," Pelosi said in a statement.

Biden also called on state and local governments to extend or put in place eviction bans for at the least the next two months, White House press secretary Jen Psaki said.

Some states like New York and California have already extended state eviction bans past July 31.

Latest comments

The USA is a weak sad nation in decline
why not just print more money and make renters and landlords whole on all unpaid back rent, mortgage, and taxes. Simple clean solution.
I'm sorry... when did we voted for the members of the CDC? Is the CDC the new religion we all have to follow?
Joke
A BIG NO!
And the welfare state continues.
More free money, more inflation.
Seems like an over reach of power to me, I feel for the tenants but they should have been saving the weekly added unemployment the goverment was handing out to lay rent, instead we have record I phone sales.
Nice! With house prices the sky landords don't need a drop of sympathy
 I would rent instead of buying!!! Just like I do now
tjis is insane and downright socialist.
How many people who have not been paying their rent (and there are millions of them) put money aside for the inevitability that they would have to start paying rent again. Try zero.   This administration is never going to lift the moratorium. They'll have more new homeless people than they have illegal immigrants
Agreed. These articles make it sound like the typical renter is down and out but most of them spent their stimi $ on non necesseties and have no plans of paying the arreage owed. Even if the moratorium is ever lifted, theyll still have 90 days before having to leave. Scammers!
I would use the authority trump always did it is a national security interest issue if people get evicted.
You have trump derangment syndrome
Im sure the delta spreading vaccine will have the 🌎 back to normal in 60 days. 🖕🏽
Can home owner refuse to pay the mortgage and property tax? If yes, then no rent is fine and congress should not be paid at the same time since there is no tax revenue.
Yes they are taken care of of course
 property/ homeowners absolutely have to pay their mortgage and their taxes whether they get any rent or not
If you have "mortgage" , you are not really "owner". Next step would be not allowing rent on mortgage property.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.