Biden Asks Congress to Extend Federal Eviction Moratorium

[DeWitt Gibson]

Hello Bigger Pockets: 

I just read this article in the Wall Street Journal online and wondering what the thoughts are out there about this subject: 

Biden Asks Congress to Extend Federal Eviction Moratorium - WSJ

"The Biden administration won’t move to extend a federal moratorium on the evictions of tenants who fell behind on rent in the Covid-19 pandemic in the wake of a court ruling, but it is asking Congress to authorize such an extension.

President Biden would have “strongly supported” a move to further extend the Centers for Disease Control and Prevention’s moratorium, scheduled to expire on Saturday, but that option is no longer legally viable after a recent Supreme Court ruling, the administration said in a statement by press secretary Jen Psaki.

State and local governments have struggled to distribute $47 billion in federal money aimed at helping tenants who can’t pay rent because of the pandemic-triggered downturn, leaving many people at risk of being forced out of their homes when the moratorium expires.

Just $3 billion of the aid authorized by Congress in December and March had been delivered to landlords and tenants as of June 30, the Treasury Department said in a report last week. About 8.2 million adults were behind on their rent or mortgage as of July 5 and have low confidence they can pay on time next month, a Census Bureau survey showed."

[Joe Splitrock]

There are landlords who have shared stories on BP that have not gotten rent since January 2020. We are approaching two years of no rent, mortgage forbearance is ending and these people don't qualify for assistance. These landlords have no right to even have their story heard in court. How is this right in America?  

Here are my thoughts:

- The CDC argued in front of the Supreme Court that there was no need to end the eviction moratorium because it was ending soon and they would not be extending it. CDC flat out lied. They had every intent of extending it. Thankfully Justice Kavanaugh went on record saying he didn't believe the CDC had authority. That is the ONLY reason Biden is asking Congress instead of just having the CDC extend it.

- Biden called on federal departments to extend the moratorium on any federally backed loans or programs. That affects landlords with Fannie Mae or Freddie Mac backed mortgages, which is most every loan out there for small investors and home investors. This also includes VA loans, FHA loans, Section 8 recipients, etc. Even large multifamily loans are affected. The question is does congress need to authorize this or will the agencies just push the policy under their own authority?

- Biden cited one reason for the extension is due to people not being able to get vaccinated. Let's be real here, anyone not vaccinated is only in that situation because of their own choice. The shots are free, available everywhere and people in need can get rides to the sites. I am sorry but if you refuse the vaccine, you don't get the right to complain about it not being safe to work or that you shouldn't have to pay rent. 

- He says some cities have not recovered. What city doesn't have "help wanted" signs everywhere? I realize some states and cities have chosen to stay closed. They did a bad job distributing assistance. The problem is you are pushing a FEDERAL mandate out to protect a few mismanaged states. Those states can pass their own eviction moratorium. It really seems there is political intent here to hurt states that are in full recovery. Playing politics with people businesses and livelihood is wrong.

- There is tons of money flowing. The only people who have not gotten assistance fall in one of two categories:

1. They don't qualify. We have seen stories on BP about tenants who were given eviction orders before COVID even started. They have literally sat in the properties for over a year, while the landlord knows they won't qualify for assistance or ever get money from them. Why can't we all agree (Biden and his party) that this is wrong? Why not let the courts decide if people have hardship or not? That is called due process and it is constitutional right. 

2. They do qualify, but make no effort to get help. Some people just mentally shut down or don't care because they can't be evicted. This group of people is even worse than the first, because they can get help but just decide to screw the landlord. Threat of eviction is the only motivation to get them to take action. I have even suggested that states should give check writing authority to the courts for assistance. When they show up in court for eviction with a year unpaid rent, have the clerk of courts write checks to landlords based on a judges order. Let the people stay in the property with the understanding "going forward you must get assistance or get a job and pay rent, next time you will be evicted."