{"id":15449,"date":"2021-06-30T15:46:03","date_gmt":"2021-06-30T22:46:03","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=15449"},"modified":"2021-06-30T15:54:30","modified_gmt":"2021-06-30T22:54:30","slug":"supreme-court-weighs-in-on-final-federal-eviction-moratorium-extension","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/supreme-court-weighs-in-on-final-federal-eviction-moratorium-extension\/","title":{"rendered":"Supreme Court Weighs in on Final Federal Eviction Moratorium Extension"},"content":{"rendered":"

\"Supreme<\/p>\n

As a nation, we are entering a bittersweet season. While many are returning to pre-pandemic activities like vacation travel and gatherings, many are still in the throes of turmoil caused by unemployment and illness such as evictions and foreclosures.\u00a0<\/span><\/p>\n

Final CDC Moratorium Extension<\/strong><\/h2>\n

The Center for Disease Control (CDC) has issued its last extension to the eviction moratorium bringing those protections to an end July 31, 2021. The White House released a fact sheet to outline initiatives for housing stabilization in response to the last extension of the CDC eviction moratorium announced last week.\u00a0<\/span><\/p>\n

The fact sheet reiterates a total of 46 billion dollars has been allocated for renters to pay back past due rent and outlines support and guidance for State and local courts to participate in eviction diversion efforts. These diversion efforts may include counseling, legal services, and help families experiencing homelessness gain access to assistance.\u00a0<\/span><\/p>\n

NRP reports that <\/span>The National Low Income Housing Coalition states that in some states less than 5% of the funds have been distributed so far<\/span><\/a> so these diversion efforts are vital in helping to reach those with the greatest need.\u00a0<\/span><\/p>\n

The comprehensive fact sheet can be read here: <\/span>Biden-Harris Administration Announces Initiatives to Promote Housing Stability By Supporting Vulnerable Tenants and Preventing Foreclosures.\u00a0<\/span><\/a><\/p><\/blockquote>\n

For more information, this guidance was released by The Biden-Harris Administration in May as the backbone to aid state and local governments to help renters in need: <\/span>US Department of the Treasury Emergency Rental Assistance Fact Sheet<\/span><\/a><\/p>\n

Also released, The Federal Housing Finance Agency (FHFA) announced its final stay for foreclosures and rental evictions last week. This and the final CDC moratorium continues to protect loans from foreclosure that are backed by:\u00a0<\/span><\/p>\n

Fannie Mae or Freddie Mac
\n<\/span>The US Department of Veterans Affairs (VA)
\n<\/span>The US Department of Agriculture (USDA)
\n<\/span>And the Federal Housing Administration (FHA)\u00a0<\/span><\/p>\n

\n

Supreme Court Weighs in on Final Federal Eviction Moratorium Extension<\/strong><\/h2>\n

On June 29th, the US Supreme Court in a vote of 5-to-4 decided in favor of a continued stay on the District Court\u2019s ruling from May against the CDCs authority to issue the moratorium. This is the second stay related to the eviction and foreclosure moratorium. The first allowed time for an appeal. However, the appeal in June also upheld the stay and prompted the case to go to the Supreme Court.\u00a0<\/span><\/p>\n

Although the court didn\u2019t offer a reason for its final decision, US Supreme Court Justice Brett Kavanaugh agreed the CDC exceeded its authority to issue the moratorium. He cast the final vote against lifting the stay with this reasoning:<\/span><\/p>\n

\u201cBecause the CDC plans to end the moratorium in only a few weeks, on July 31, and because those few weeks will allow for additional and more orderly distribution of the congressionally appropriated rental assistance funds,…\u201d but continues on to state his view that, \u201cclear and specific congressional authorization (via new legislation) would be necessary for the CDC to extend the moratorium past July 31.\u201d<\/p><\/blockquote>\n

Read Justice Brett Kavanaugh\u2019s Opinion on 594 U.S. _ (2021) No.20A169: <\/span>Application to Vacate Stay<\/span><\/a><\/p>\n

\n

According to <\/span>Eviction Lab<\/span><\/a>, a team of researchers dedicated to understanding the sudden and traumatic loss of home through evictions, calculate that landlords file 3.7 million eviction cases a year nationwide on average.\u00a0<\/span><\/p>\n

The Aspine Institute<\/span><\/a> estimated that 30-40 million people in America were at risk for an eviction in the months following August last year. Although some estimates place the number of renters behind on rent today between 7 and 11 million, down significantly from a year ago, those are still staggering numbers that will overwhelm the court systems and temporary housing options such as shelters.\u00a0<\/span><\/p>\n

CNBC reported in May<\/span><\/a> that, \u201cExperts say the number of evictions could skyrocket when the ban lifts\u201d noting The Center on Budget and Policy Priorities estimates “around 15% of adult renters are not current on their housing payments.\u201d\u00a0<\/span><\/p>\n

These estimates don\u2019t take into account the number of foreclosures that are also set to cascade across the country.\u00a0<\/span><\/p>\n

Fortunately, according to the Consumer Financial Protection Bureau, there is still time to apply for mortgage relief such as mortgage forbearance. Forbearance allows those homeowners unable to pay their mortgage due to COVID-19 related hardships to skip their monthly mortgage payments for up to 18 months. For example:\u00a0<\/span><\/p>\n