Casebook PBC Blog

Preventing A Wave of Homelessness: Tenant Rights and Rent Moratorium 2021

Written by Maryellen Hess Cameron | Mar 9, 2021 12:15:00 PM

Maryellen Hess Cameron spent over 25 years as the Executive Director of non-profit agencies in the social.... Renters in financial distress are facing a loss of housing in calamitous numbers. You and your clients may be confused and frustrated with programs that are supposed to prevent peoples’ loss of housing. Take heart. There is a lot happening behind the scenes to help renters. Renters in financial distress are facing a loss of housing in calamitous numbers. You and your clients may be confused and frustrated with programs that are supposed to prevent peoples’ loss of housing. Take heart. There is a lot happening behind the scenes to help renters. The first thing you should know is that at the time of publishing the moratorium established by the Centers for Disease Control and Prevention (CDC) has been extended until March 31, 2021. President Biden extended it by Executive Order on the day he was inaugurated. It is intended as a placeholder until Congress can act on his proposed American Rescue Plan. If passed in its current form, it will extend the moratorium for another six months. There are additional eviction protections put into practice by individual states and municipalities. This article includes links to sites you can search to find what is available for your community. It Isn’t Automatic Your client needs to know that the moratorium is not automatic. Tenants must make a request to the property owner to delay any eviction proceedings for failure to pay rent. It has no obligation to let its tenants know the status of the moratorium or how they apply for it. Tenants must act proactively by submitting a Declaration that they are unable to pay rent in full as a direct result of the pandemic. Every member of the household who is named on the lease must also file a Declaration. The form lists conditions the tenants must meet. They made efforts to find any assistance that could be available to them. This article includes information about where you can look for help. They qualify based on income guidelines. They have lost a substantial amount of their income as a direct result of the pandemic. They are paying as much of the rent as they can afford. Their eviction would lead to homelessness. The Declaration has scary reminders for people. Declarants acknowledge that they are still obligated for the rent in full when the moratorium has expired. It also states that landlords may charge any fees, penalties or interest described in the current lease agreement. Remember, it does not entitle them to add on fees that were not part of the lease. What the Moratorium Doesn’t Do The moratorium does not protect tenants from the consequences of other lease violations. Commonly, leases include language about other offenses. Property damage leads to many evictions, although if tenants pay for repairs up front the tenant may be able to halt the process. Tenants who cause disruptions are also at risk, regardless of income loss due to COVID-19. Tenants have a right to “the peaceful enjoyment of their home.” Loud parties, for example, are not protected by the moratorium. In fact, suggest to your clients that they should be on their best behavior. This is not a time for them to test their property owner’s tolerance, and thus give it a chance to find another reason to evict. Rent Negotiations Tenants may be able to reduce their liabilities through landlord agreements. People who have been good tenants may find that their landlord will work with them to set up a payment plan. Tenants will have more luck facing the property owner head on. Tenants should ask landlords to renegotiate rents. A reduction now will lessen how much is accumulating. At the least they may be able to convince the property owner to reduce or waive late fees if they are clearly making a good faith effort to pay their rent. If your client is receiving rent subsidies, they should contact the housing agency immediately. Agencies using government funding for this are obligated to reduce rents to a percentage of income, even if the income goes down to zero. Renters in these programs will not accrue back rent payments during the lapse of income. However, they are also obligated to notify the housing agency as soon as their income is restored. Unreported income is grounds for a loss of subsidy. Once lost, your client will go on a new waiting list that can be months or even years long. Some programs may bar them from eligibility if they violate this obligation. Many landlords are getting federal relief on paying on the mortgages they hold for rental properties, according to the Consumer Finance Protection Bureau (CFPB). It should help rent negotiations if your landlord is getting help with its mortgages and other expenses. The CFPB explains how to find out if your landlord is getting help (the information is far down in the site so you will need to scroll down to it). If so, it is critical information to help with negotiations. Don’t overlook just asking your landlord whether it is getting relief. You may learn that it has gotten help that is not listed on the CFPB website.