What will executive order mean for landlords

Question

I see where evictions will be prevented in the new executive order, does this mean tenants can not pay and still live in your property? I know the same kind of deal was in place through July and we didn’t face any non payment, does anyone have any insight?

Steven Glasgow · Answer

The only part of his executive that has me concerned, is section 3(a). Trump may attempt to get the head of the CDC and/or HHS to say "Evictions are bad, and evictions could result in a spread of the virus, so therefore none can happen". That would really hurt the housing market, if they try to enforce that. At least the Cares Act had relief for landlords, who could take a deferment without damaging their credit, on a mortgage while they could not do an eviction. And it only applied to government backed mortgages - not hard money loans, private loans, portfolio loans, paid off houses, etc. That's probably thinking too much into it...but you never know. Trump said "Today, I'm directing the [government agency] to make sure renters and homeowners can stay in their homes, so I am protecting people from evictions..." 😬 See for yourself at https://twitter.com/WhiteHouse...I read it twice, and I'm reading it as "evictions and foreclosures are bad, we need to stop or reduce them, and I encourage government agencies to do what you can to give extra funds to renters & homeowners, and do what you can within the law to stop evictions and foreclosures". So ... he's not saying "stop all evictions" per se. But I can see Fannie Mae or Freddie Mac delaying any foreclosures and/or evictions for a while - but that's IF they decide to do something. As said above - my only concern is the obscure section 3(a) language he inserted -- they would be dumb to stop all evictions, for all types of non-payment of rent situations / mortgages / propertiesHere's Trump's full executive order - https://www.whitehouse.gov/presidential-actions/executive-order-fighting-spread-covid-19-providing-assistance-renters-homeowners/

Timothy W Hanson · Answer

Here is the language:

Sec. 3.  Response to Public Health Risks of Evictions and Foreclosures.  (a)  The Secretary of Health and Human Services and the Director of CDC shall consider whether any measures temporarily halting residential evictions of any tenants for failure to pay rent are reasonably necessary to prevent the further spread of COVID-19 from one State or possession into any other State or possession.

(b)  The Secretary of the Treasury and the Secretary of Housing and Urban Development shall identify any and all available Federal funds to provide temporary financial assistance to renters and homeowners who, as a result of the financial hardships caused by COVID-19, are struggling to meet their monthly rental or mortgage obligations.

(c)  The Secretary of Housing and Urban Development shall take action, as appropriate and consistent with applicable law, to promote the ability of renters and homeowners to avoid eviction or foreclosure resulting from financial hardships caused by COVID-19.  Such action may include encouraging and providing assistance to public housing authorities, affordable housing owners, landlords, and recipients of Federal grant funds in minimizing evictions and foreclosures.

(d)  In consultation with the Secretary of the Treasury, the Director of FHFA shall review all existing authorities and resources that may be used to prevent evictions and foreclosures for renters and homeowners resulting from hardships caused by COVID-19.

Sec. 4.  General Provisions.  (a)  Nothing in this order shall be construed to impair or otherwise affect:

(i)   the authority granted by law to an executive department or agency, or the head thereof; or

(ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.