The Federal Housing Administration (FHA) was able to stop evictions of renters during the coronavirus pandemic. The Coronavirus Aid, Relief, and Economic Security Act (CARES) also made it unlawful for landlords to evict tenants in federally subsidized or federally backed housing. However, those protections are set to expire today (Friday, July 24).
Washington D.C.-based think tank Urban Institute estimates the eviction moratorium, expiring today, could put more than 12.3 million renters at risk of losing their home.
This protection can help stabilize renters during an economically precarious time, but it doesn't cover everyone. We estimate that eviction moratoria covering federally financed properties will apply to roughly 12.3 million (28 percent) of the 43.8 million US rental units. - Urban Institute wrote
What this means is that landlords will begin filing eviction paperwork for tenants who haven't paid rent for 30 days, and or, as we've noted, some folks haven't paid rent in months. While it's customary renters get 30 days' notice, an eviction wave is ahead.
The end of eviction protection comes as households are being hit with a fiscal cliff. The $600 in weekly federal unemployment assistance for tens of millions of folks is set to expire next week. We've called it an "income cliff," as it would mean consumption would crater, and the recovery would quickly reverse.
The Trump administration is attempting to pass another round of the stimulus. So far, there are no proposals to extend the moratorium.
Sharon Parrott, senior vice president for federal policy and program development at the Center on Budget and Policy Priorities, said earlier this week that at least 20% of renters are behind in payments.
Advocacy group COVID-19 Eviction warns the actual number could be between 19 million and 23 million families face evictions this fall.
The Washington Post noted the House had passed legislation to create a rental assistance fund, which would support low-income renters for two years. The Senate has yet to review the bill.
As everyone focuses on eroding US-China relations, the start of baseball and the fiscal shenanigans in Washington, a crisis begins today. It's called the eviction crisis as the 4-mth moratorium ends and the nation's landlords unite! Over 12m renters/mortgage borrowers at risk.— David Rosenberg (@EconguyRosie) July 24, 2020
With millions of folks unable to pay rent, how in the hell can there be a V-shaped recovery?