Eviction Moratorium

Appeals Court Refuses to End CDC’s Double-Secret Extra Extended Eviction Moratorium

A Federal Court on Friday struck down the appeal made by Alabama and Georgia Realtors Associations to end the eviction moratorium that was put back into place earlier this month. The Centers for Disease Control and Prevention put the moratorium back in place on August 3rd of this year.

“CDC Director Dr. Rochelle Walensky today (August 3rd, 2021) signed an order determining the evictions of tenants for failure to make rent, or housing payments could be detrimental to public health control measures to slow the spread of SARS-CoV-2, the virus that causes COVID-19. This order will expire on October 3rd, 2021, and applies in United States counties experiencing substantial and high levels of community transmission levels of SARS-CoV-2.”

The defeated Realtor Association groups immediately filed an emergency motion with the Supreme Court imploring them to allow their evictions to go through.

Previously the Supreme Court had voted 5-4 in favor of allowing the moratorium to stay in place through July 31st of this year. Even Justice Kavanaugh, a Conservative judge, sided with those in favor of leaving the moratorium in place with a warning to the current administration not to act without Congressional action again.

“As five Members of this Court indicated less than two months ago, Congress never gave the CDC the staggering amount of power it claims,”

“As five Members of this Court indicated less than two months ago, Congress never gave the CDC the staggering amount of power it claims,” the Realtor group’s attorney was quoted as saying.

It is essential to understand that the moratorium only affects counties with “substantial and high levels” of virus transmissions. However, this now accounts for 90% of the populated areas in the county. Roughly 3.5 million people in the United States might lose their homes or be evicted without the moratorium.

Although there is no evidence this latest moratorium extension will do much more than kick the can down the road a few more months, many are beginning to suspect politicians of trying to put this either squarely in, or beyond the midterm election politics.  These moratoriums can’t last forever, it just isn’t possible.

More challenges to these moratoriums are expected as the pandemic effects continue to wreak havoc with the usual mechanism of our capitalist economy. Although many of those not paying rent indeed cannot afford to because of job loss, there is a growing pool of tenants and homeowners not paying simply because they know they don’t have to right now. Reports of tenants not paying rent but buying luxury items are rampant, leaving landlords frustrated and helpless as they face financial disaster.

Suppose Landlords cannot collect rent payments and therefore they cannot make mortgage payments. In that case, it is perhaps only a matter of time before cataclysmic events circa the Great Recession begin again. This time instead of small time investors buying these properties to rent out, it will surely end up in the hands of large corporations. The eviction moratorium will ensure only corporations can be landlords.

Despite President Biden allowing the moratorium to lapse on July 31st, saying “We have no legal authority to allow it to continue.” In the 11th hour the CDC emerged to kick the proverbial can down the road again on behalf of the administration. 

The currently double-secret extra extended moratorium is scheduled to expire on October 3rd.

Damon Simon

Damon is a real estate investor, a serial entrepreneur, a writer, developer, and a graphic designer. Damon started as a graphic designer in the 90s and quickly created his own affiliate network in the early affiliate marketing boom of 2000's. Next Damon began his real estate career in 2010 and enjoys it as a side hustle when he is not nurturing bits of code & content for his baby, PropertyOnion.com

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