Millions of struggling renters caught a much-needed break when the federal moratorium on evictions was extended through the end of March. But for many landlords across the US, the news came as a nightmare.
“It’s important to recognize that, after 10 months of severe economic distress, job loss, and decline in rent collections, everyone is hurting,” said Bob Pinnegar, president and CEO of the National Apartment Association, an industry group representing property owners.
By extending the moratoriums further, he said, it leaves landlords and property managers “saddled with the financial burden of providing housing to America’s 40 million renters without sufficient resources to do so, and they leave residents to accrue even more debt.”
The federal eviction moratorium, put in place by the Centers for Disease Control and Prevention in September to stop the spread of coronavirus, prevents property owners from evicting renters for non-payment of rent. The order temporarily prohibits new and previously filed evictions from occurring. It requires struggling tenants to provide a declaration to their landlord that they earn less than $100,000 a year, have experienced a significant loss of income and have made their best effort to find rental assistance and pay their rent.
Initially, the CDC order was set to expire at the end of December, but was extended through January by a provision in the second stimulus package. One of President Joe Biden’s first acts in office was to seek to extend the moratorium again until the end of March.
Ultimately, Pinnegar argues, residents, owners and policymakers want the same thing: for tenants to stay in their homes. But, he said, eviction moratoriums don’t accomplish that because they create the illusion that everything is stable when, in fact, “they are far from it.” Renters will still owe back rent once the moratorium is lifted. And, in the meantime, landlords are stuck figuring out how to cover their monthly expenses.
-CNN BUSINESS