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US Landlords Sue U.S. for Rent Unpaid Under Eviction Moratorium

04:30  28 july  2021
04:30  28 july  2021 Source:   bloomberg.com

Rent relief efforts slowly ramp up as millions could soon face eviction

  Rent relief efforts slowly ramp up as millions could soon face eviction With just over a week left until the federal eviction ban expires, the race to get emergency rent relief to as many struggling tenants and landlords as possible is in its final stretch. © Brittany Murray/MediaNews Group/Long Beach Press-Telegram/Getty Images A new 95-unit affordable housing development in Long Beach, California. "It is a race against the clock," said Diane Yentel, president and CEO of the National Low Income Housing Coalition. After a slow start, the pace of distributing the $46 billion for rent relief that was allotted in the December stimulus package and the American Rescue Plan has improved.

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.

The nationwide federal eviction moratorium has been ordered through the Centers for Disease Control (CDC) to halt residential evictions through the end of March 2021 for non-payment of rent due to Covid-19. Both lawyers discussed the issues, the affidavits that tenants must provide to show how Communication and documentation with tenants is important in the federal eviction moratorium . Watson said that he’ s been advising landlords and property managers to be proactive with tenants. “I have maintained a lot of communication, much more than the normal, with all my tenants during this

(Bloomberg) -- A landlords’ lobbyist said it sued the U.S. government to recover damages the organization claims its members suffered as a result of a federal moratorium on evictions.

a large building in the background: Aerial Views Of Washington As White House Open To Extending Shutdown Deadline © Bloomberg Aerial Views Of Washington As White House Open To Extending Shutdown Deadline

The National Apartment Association filed the lawsuit Tuesday at the U.S. Court of Federal Claims in Washington, the organization said in a statement. The complaint wasn’t immediately available on the court’s electronic docket.

The NAA claims that by the end of last year, more than 10 million delinquent tenants owed $57 billion in unpaid rent. Apartment owners are now responsible for $27 billion of debt not covered by federal rental assistance, the group argues.

Evictions loom after Biden and Congress fail to extend ban

  Evictions loom after Biden and Congress fail to extend ban More than 3.6 million Americans are at risk of eviction, some in a matter of days, as nearly $47 billion in federal housing aid to the states during the pandemic has been slow to make it into the hands of renters and landlords owed payments. The moratorium expires at midnight. © Michael Dwyer People from a coalition of housing justice groups hold signs protesting evictions during a news conference outside the Statehouse in Boston, Mass. People from a coalition of housing justice groups hold signs protesting evictions during a news conference outside the Statehouse in Boston, Mass.

Under the various policies passed in the state, landlords have been unable to apply late rent fees or sue for back rent , on top of being prevented from evicting people for not paying. Even though tenants are technically still on the hook for all the money they owe, the lawsuit said says landlords are unlikely to see that money. “Plaintiffs’ ‘right’ to unpaid rent is little more than an illusion.” The lawsuit makes no mention of a separate eviction moratorium passed by the federal government this year.

Under these eviction bans, renters still owe the rent , but they cannot be evicted for nonpayment of rent . Instead, the landlord can pursue legal action in the courts to obtain a judgement and then collect on the judgment, but cannot evict the tenant for nonpayment. These “housing payments” include rents and mortgage payments, and we know that mortgages are defaulting in large numbers and are entering forbearance agreements with the lenders. In terms of rents , Apartment List says: “Among renters with unpaid housing bills, 49 percent have either negotiated, or are in the process of

The moratorium issued by the U.S. Centers for Disease Control last year has hurt landlords who provide critical rental housing, and “sets a dangerous precedent for future disaster-response measures,” according to the complaint. Property owners forced to maintain their properties were unfairly prohibited from evicting tenants not paying rent, and from renting to paying tenants, according to the suit.

The U.S. Justice Department didn’t immediately respond to an email seeking comment on the suit.

The CDC moratorium was put in place by former President Donald Trump’s administration and extended under Biden. It had been set to expire June 30 before the CDC announced what it said was a final, one-month extension on June 24.

Last month, the U.S. Supreme Court refused to lift the federal moratorium on evictions during the Covid-19 outbreak, leaving the ban in place until the end of July. By a 5-4 vote, the justices rejected calls by landlords and real-estate trade associations from Alabama and Georgia to block the moratorium while a challenge goes forward. The groups claimed the CDC exceeded its authority by imposing the ban.

More stories like this are available on bloomberg.com

©2021 Bloomberg L.P.

CDC Issues New Eviction Moratorium Amid Standoff Between White House and Progressive Democrats .
As COVID-19 cases rise in the United States, the expiration of the eviction moratorium grew into a political emergency for Democrats.Sullivan, 23, applied for emergency rental assistance through her local government and a charitable foundation, but so far she hasn’t been awarded any. After a federal eviction moratorium imposed by the Centers for Disease Control (CDC) expired on July 31, she’s running out of time. And she’s not alone: The Center on Budget and Policy Priorities, a left-leaning think-tank, estimates that 11.4 million renters are still behind on rent payments. But while Congress appropriated $46.

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