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U.S. CDC issues sweeping halt on residential evictions to combat virus

Published 09/01/2020, 03:26 PM
Updated 09/01/2020, 09:00 PM
© Reuters. U.S. Treasury Secretary Mnuchin testifies before House Select Subcommittee on the Coronavirus Crisis

By David Shepardson

WASHINGTON (Reuters) - The U.S. Centers for Disease Control and Prevention on Tuesday issued a sweeping nationwide order temporarily halting millions of U.S. renters from being evicted, in a bid to reduce the spread of COVID-19.

The order covers all 43 million U.S. residential renters as long as they meet income eligibility requirements, although an administration official said the government does not expect an "overwhelming" use of the program.

The order lasts through Dec. 31 and applies to individual renters who do not expect to earn more than $99,000 this year or $198,000 for joint filers. It also applies to renters who did not report income in 2019 or received a stimulus check earlier this year.

The National Apartment Association said the CDC order risked further harm to the economy and would amplify the housing affordability crisis and destroy the rental housing industry. Without payments "owners face a financial crisis of their own," it said.

Renters must file sworn declarations warning eviction would leave them homeless or force them into a "shared living setting" and attest they have done all they can to get government assistance for rent or housing."

The administration warned renters could be "prosecuted, go to jail, or pay a fine" if they lie in declarations.

An administration official told reporters the order was not an invitation to stop paying rent and said renters should pay a portion of rent if possible. Renters will still owe accrued rent and face penalties for failing to pay.

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The CDC order also said renters can "still be evicted for reasons other than not paying rent or making a housing payment."

U.S. Treasury Secretary Steven Mnuchin told a U.S. House of Representatives panel earlier the measure was to ensure people "don't get thrown out of their rental homes."

In July, a firm estimated more than $21.5 billion in past-due rent is owed by Americans.

As unemployment surged to levels unseen since the aftermath of the 1930s Great Depression, a patchwork of federal, state and local eviction bans has kept renters who could not make payments in homes.

U.S. President Donald Trump on Aug. 8 directed CDC to consider if temporarily halting residential evictions was "reasonably necessary to prevent the further spread of COVID-19."

The Democratic-controlled House of Representatives passed a bill in May to extend enhanced jobless aid through January and allocating $100 billion for rental assistance. It would extend the federal ban on evictions for up to one year. The bill has not been approved in the Senate.

A spokesman for Democratic presidential candidate Joe Biden questioned why it took so long for Trump to back the moratorium and noted Biden backed the House proposal.

Latest comments

Evict them all our face financial colapse, market crash, hence more unemployement and more evictions...
Trump backs this now because he wants the votes
But was not the US economy so strong?
our politicians, fed, banks, and cdc are out of control. they are putting the screws to the average American and anyone who worked hard to own multiple properties. they are working overtime to ensure they crush the upper middle class and middle class. 2020 is nothing but a widening of wealth gap. it'll be rich and poor and none of you will be part of the rich. get ready for 2121 when this fed bubble pops and the gobble up everything as we love in chaos
we will see a lot of bank default
FREE RENT for all my Tenants. How does the mortgage get paid?
With the do nothing Dems doing nothing people would be out on their *****otherwise 🤕
The Dem bill has billions of pork not related to corona like no border wall funding
B ull sheet.... who will pay rent and who will pay the mortgage then?
Just killed every landlord
So landlords will default then banks evict? what a mess.
And the feds bank buddies will be left with property worth zip and junked property sector
welcome to communism
no renter has ever not lived pay check to pay check. no back rent will ever be returned
Plus the Dem ons snuck in other billions of pork not related to corona
what is the landlord to do let the banks take them back and then the banks will have the problem
The banks were bailed out by the american people, think its time they returned the favor.
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