CDC Eviction Ban Ruled Unlawful But Being Appealed
A U.S. District Court Judge ruled on Wednesday that the CDC Eviction Ban is unlawful and should be removed. The ruling resulted from a lawsuit filed by the Georgia and Alabama state Realtors associations and other parties. While the eviction ban is scheduled to end on June 30, 2021, the ruling risks making a bad situation worse. As a result of the decision, the Department of Justice immediately filed an appeal, the District Court issued a temporary stay, and the existing eviction ban stays in place. The next step is for the court to have a hearing in the next two weeks. At that time, the court will determine if the judgement stands.
With rental assistance in place to help tenants pay their rent, the property owners believe the eviction ban can be removed. However, there is concern that the $46.5 billion provided for rent relief by the federal government is not enough. The estimated outstanding rent balance is $70 billion resulting in a shortage of $23.5 billion that is owed to landlords and needs to be paid by tenants. The U.S. Census reports in its weekly Household Pulse Survey that almost 14% of respondents are not caught up on their rent and there is a growing worry that they will be evicted. As we approach June 30th, and now May 19th, their anxiety will only grow.
However the court rules on the CDC Eviction Ban lawsuit, millions of tenants are facing eviction in either two or eight weeks. As a result, the focus needs to be on how we are going to manage and solve this problem. More federal rental assistance? Payment plans between landlords and tenants? Tax credits for landlords that don’t evict? An extended eviction moratorium?
Who knows, but we will find out by June 30, 2021.