Tom T. and I were lamenting earlier this week about the plight of the mom-and-pop landlords due to the ban on evictions – because some tenants are taking advantage. The ban might get extended too:
Senator Elizabeth Warren (D-MA) and Representatives Jesús “Chuy” Garcia (D-IL) and Barbara Lee (D-CA) introduced legislation on June 29 that would extend and expand a nationwide eviction moratorium to protect tenants who have been impacted by the coronavirus pandemic. The “Protecting Renters from Evictions and Fees Act of 2020” would extend the federal eviction moratorium until March 27, 2021, one year after the date of enactment of the “Coronavirus Aid, Relief, and Economic Security (CARES) Act,” and expand the moratorium to cover all renters. The bill would also prohibit fees, fines, and extra charges due to nonpayment of rent.
The federal eviction moratorium included in the CARES Act covers fewer than 30% of renters, and it is set to expire on July 25, 2020. Advocates warn of a surge in evictions and a spike in homelessness if Congress does not intervene. The “Protecting Renters from Evictions and Fees Act of 2020” aims to ensure renters will not lose their housing if they experience economic hardship during the crisis and need additional time to make payments.
“Without a significant federal intervention, there will be a rash of evictions and a spike in homelessness across the country,” said NLIHC President and CEO Diane Yentel. “Ensuring housing stability for all is both a moral imperative and a public health necessity. I applaud Senator Warren and Representatives García and Lee for introducing legislation today that will keep renters in their homes and give them the security and stability needed to stay safe throughout the duration of the pandemic.”
Read Senator Warren’s press release at: https://bit.ly/2Bvj5Xz
Read a fact sheet on the bill at: https://bit.ly/3eTk8Pu
If you, or someone you know, is thinking about disposing of a property that is tenant-occupied, contact me today. I have a wealth of experience in convincing tenants to move!
Before anyone jumps to the wrong conclusions, I’m not sending the goon squad over to throw their stuff onto the street.
If you just have non-paying tenants, I can’t help you.
If you have non-paying tenants AND you want to sell the property, then I can help you – a lot!
Jaw dropping legislation. If this passes, a lot of landlords will have to sell or re-occupy. This will cause an increase in distressed sales. What could cause an uptick on the foreclosures?
CNBC spoke with Benfer about the coming eviction crisis and what can be done to turn it around. The interview has been condensed and edited for clarity.
CNBC: How does the eviction crisis brought on by the pandemic compare with the 2008 housing crisis?
EB: We have never seen this extent of eviction in such a truncated amount of time in our history. We can expect this to increase dramatically in the coming weeks and months, especially as the limited support and intervention measures that are in place start to expire. About 10 million people, over a period of years, were displaced from their homes following the foreclosure crisis in 2008. We’re looking at 20 million to 28 million people in this moment, between now and September, facing eviction.
CNBC: What can be done to make this eviction crisis less devastating?
EB: As an immediate measure, we need a nationwide uniform moratorium on eviction, and it has to be coupled with financial assistance to ensure that the renter can stay housed without shifting the debt burden onto the property owner. The owners that are the most likely to be affected by the eviction crisis right now are those who have small properties and don’t have the financial cushion to make ends meet over a period of months when they’re not receiving that rent. Once that’s in place, we really need to start addressing the root causes of the eviction crisis and the lack of affordable housing.
What could cause an uptick on the foreclosures?
If they do a nationwide ban on evictions for a year (which looks fairly certain), then the next natural step would be to ban foreclosures.
Kamala almost banned them last time – if the federal government just follows the California Homeowners Bill of Rights that she authored, it will be close enough to a ban.
What could trigger an uptick in foreclosures is if lenders recognize that they have non-payers with loads of equity – those are easy to disperse on the courthouse steps and turn into instant payoffs for them.
Democrats should be careful. If this passes and Trump loses the election, they won’t be able to get him out of the White House.
LOL – can you imagine?
I’m a small landlord and I got laid off too. I need the rent or I’ll be bankrupt soon.