The information provided on this resource page is for informational purposes only and not intended to be legal advice. It is designed to assist our members and other housing providers in understanding COVID-19 and the issues it raises, but it is not intended to address specific circumstances or business situations. For specific legal questions, please consult your legal counsel.

 

Rent Is Still Due But CDC Issues An Eviction Moratorium

Author: MHA/Wednesday, September 2, 2020/Categories: COVID-19

An Order put forward yesterday by the Centers for Disease Control and Prevention (CDC) effectively stops non-payment evictions for most renters for the remainder of 2020.

The CDC Order specifically notes that it does not apply in any State which has a greater level of public-health protection than that provided under the Order. In Minnesota, Governor Walz’s Executive Order 20-79, which is broader than the CDC Order, still remains in place. Therefore, property managers need only to be in compliance with Executive Order 20-79 while it remains in effect. However, if the Executive Order is lifted or restricted in a manner that would provide less protection for renters than the CDC Order, then the CDC Order would apply until December 31, 2020. The CDC Order is scheduled to become effective on Friday, September 4th.


To reiterate, the CDC Order does not become effective in Minnesota until Executive Order 20-79 is lifted or restricted but below are additional details on the CDC Order.

The CDC Eviction Moratorium applies to all residential rental properties, but the Order does not relieve the obligation to pay rent and nothing prohibits the charging or collecting of fees, penalties, or interest as a result of the failure to make payment on a timely basis.

Further guidance will be forthcoming as we gain clarification and details on how the process will work should a resident seek to exercise their rights under the CDC Order.

As we currently understand the Order, residents must meet the following criteria and provide to their property manager an executed copy of a detailed Declaration form attesting to the following:

  1. The individual has used best efforts to obtain all available government assistance for rent or housing;
  2. The individual either
    1. Expects to earn no more than $99,000 in annual income for Calendar Year 2020 (or no more than $198,000 if filing a joint return);
    2. Was not required to report any income in 2019 to the IRS; or
    3. Received an Economic Impact Payment (stimulus check) pursuant to the CARES Act
  3. The individual is unable to pay the full rent or make a full housing payment due to substantial loss of household income, loss of compensable hours of work or wages, a lay-off, or extraordinary out-of-pocket medical expenses;
  4. The individual is using best efforts to make timely partial payments that are as close to the full payment as the individual’s circumstances may permit; and
  5. Eviction would likely render the individual homeless.

The CDC Order does not preclude evictions based on a resident:

  1. Engaging in criminal activity while on the premises;
  2. Threatening the health or safety of other residents;
  3. Damaging or posing an immediate and significant risk of damage to property
  4. Violating any applicable building code, health ordinance, or similar regulation relating to health and safety; or
  5. Violating any other contractual obligation, other than the timely payment of rent.

An Order put forward yesterday by the Centers for Disease Control and Prevention (CDC) effectively stops non-payment evictions for most renters for the remainder of 2020.

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