Effective September 4, 2020, due to a health emergency issued by the Centers for Disease Control and Prevention (“CDC”) and the Department of Health and Human Services (“HHS”), the White House announced a temporary eviction moratorium until December 31, 2020. The order states that the ability to quarantine, isolate, and socially distance in one’s home is effective in preventing “the spread of communicable disease,” namely COVID-19.  The order further states that “housing stability helps protect public health because homelessness increases the likelihood of individuals moving into congregate settings, such as homeless shelters, which then puts individuals at higher risk to COVID-19.”

A key component to the order is that it “does not relieve any individual of any 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.”   While seeing the short-term reprieve to renters, much of the lending community is concerned that this step is not enough and is simply delaying further crisis in the rental housing market until next year and does not address the financial burden impacting renters and housing providers.  It remains urgent for Congress to pass legislation with rental and unemployment assistance that will allow tenants to maintain their housing and meet their financial obligations, as well as help safeguard the rental housing finance market.

Read more about the CDC and HHS notice here.

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