The last eviction moratorium, which expired at the end of July, was ruled as being outside of the CDC’s authority to enforce by Judge Dabney L. Friedrich. Despite this ruling, the moratorium was allowed to stay in place through July by the Supreme Court. Not long after this ruling, the Biden administration, facing congressional pressure, issued a new eviction moratorium that is now set to expire on October 3, 2021. Read about the new moratorium on CDC.gov.
Just a day later, landlord and real estate groups already petitioned against the ban, with the Georgia chapter of the National Association of Realtors also suing, stating an additional moratorium is outside of the White House’s authority (by their own admission) and the continuation of eviction moratoriums means landlords can’t pay their mortgages and tenants will be saddled with thousands in debt that they cannot pay. The reasoning behind the latest eviction moratorium is valid; with the COVID-19 Delta variant spreading, there is significant risk for people to become sick, unable to work in order to pay rent, and forced to move in with family or friends, risking further spread of the virus. However, both sides hold valid concerns, and the Biden Administration itself is aware of how this new moratorium could be overturned. The hope is that this latest policy differs enough from previous versions that it will be upheld.
This cbsnews.com article describes how the CDC was warned by the Supreme Court to not take further action without clear congressional approval. Despite the Biden Administration’s own lawyers knowing they may not be able to uphold the argument for the latest moratorium in court, the Alabama and Georgia chapters of NAR argued the CDC caved under pressure to issue it.
What did the White House have to say?
The same CBS News article quotes, “Given the rising urgency of containing the spread of the Delta variant, the Biden Administration’s goal is to keep as many Americans safe and housed as possible, for as long as possible. The CDC identified the legal authority and developed the requisite record for a new, targeted eviction moratorium — focused on counties with high or substantial case rates — to protect renters, and the CDC ultimately adopted that measure. The President has a deep respect for the rule of law, and we would direct any further questions to the Department of Justice.”
What is the difference?
The latest order of protection applies to those living in the counties with the highest level of transmission. Read more at CDC.gov. Although, this does cover a large portion of the country.
Despite doubts over the ability for the ban to stand up in court, President Biden hopes the new order will at least buy more time for those at risk of eviction.
Unfortunately, many homeowners have been facing financial hardships over the past year and a half and may soon be facing foreclosure. They’ll need help trying to avoid the process, or getting through it, and that’s where you can step in as a real estate professional. Staying up-to-date on the latest foreclosure data is critical in times like this, and that’s where we can help your business. Check out what our data can do to help you track foreclosures and pre-foreclosures and then take a look at the myriad of data solutions at your disposal to keep your team on top of its game.
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