House Committee Advances Bill to Expedite Emergency Rental Assistance; Treasury and FHFA Loosen Fannie, Freddie Mortgage Purchase Restrictions

House Financial Services Committee graphic

The House Financial Services Committee (HFSC) on Sept. 14 advanced the “Expediting Assistance to Renters and Landlords Act of 2021” by a vote of 28-22 after a hearing last week that focused on urgent reforms needed to the Treasury Department’s Emergency Rental Assistance Program (ERAP). (Bill text and section-by-section)

  • H.R. 5196 would allow property owners to directly apply for rental arrears after meeting certain requirements. Landlords could apply for pandemic-related rental aid without getting the tenant’s signature, but could not evict those tenants for 120 days. (HFSC memorandum, Sept. 7 and PoliticoPro, Sept. 14) 

Assistance for Property Owners 

Emergency Rental Assistance Program graphic

  • Treasury reported that as of July 2021, only 11% ($5.1 billion) of the $46.6 billion in authorized federal rental assistance funds had been spent by state and local governments to assist approximately one million renters. (Committee Memorandum, Sept. 7) 
  • The issue of eliminating significant bottlenecks to deliver billions in rental assistance to landlords and tenants has grown more urgent in recent weeks after the Supreme Court’s Aug. 26 decision to halt the federal eviction ban. (Roundtable Weekly, Aug. 27)
  • Treasury this week announced it will speed up delivery of the remaining $13 billion in federal rental aid by targeting the high-performing state and local government grantees. (Treasury news release, Sept. 14)
  • National Multifamily Housing Council (NMHC) Chair David Schwartz (Chairman and CEO, Waterton) testified Sept. 10 on behalf of the rental housing industry at the HFSC hearing “Protecting Renters During the Pandemic: Reviewing Reforms to Expedite Emergency Rental Assistance.”
  • Schwartz supported the ramp up of rental assistance benefits and streamlining onerous application and documentation requirements, yet cautioned against the imposition of new requirements that create new barriers for property owners to participate in ERAP programs. (YouTube, full hearing and NMHC news release, Sept. 10)
  • Schwartz will join Roundtable President and CEO Jeffrey DeBoer and NMHC President Doug Bibby in a Sept. 23 multifamily webinar hosted by RealEstateConnect that will cover the economic outlook and tax law policy changes under consideration in Washington. (Register here)

Fannie, Freddie Restrictions Suspended

Fanne Mae and Freddie Mac logos

  • Treasury and the Federal Housing Finance Agency (FHFA) this week suspended Trump-era restrictions on Fannie Mae and Freddie Mac as the Biden administration reviews revisions affecting mortgage purchases. (American Banker, Sept. 14)
  • The suspended provisions include limits on Fannie and Freddie cash windows (loans acquired for cash consideration), multifamily lending, loans with higher risk characteristics, and second homes and investment properties. (FHFA news release, Sept. 14) 

Treasury stated, “FHFA will continue to measure, manage, and monitor the financial and operational risks of the Enterprises to ensure that they operate in a safe and sound manner and consistent with the public interest. During the suspension, FHFA will review the suspended requirements and consult with Treasury on any recommended revisions.” (Treasury news release, Sept. 14) 

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Supreme Court Blocks CDC’s Latest Eviction Ban

The U.S. Supreme Court struck the Biden Administration’s nationwide ban on residential tenant evictions yesterday, ruling that only Congress has the authority to enact such a moratorium through legislation. (New York Times, Aug. 27; Wall St. Journal, Aug. 27)

The Legal Challenge

  • The high court’s conservatives issued a majority, 6-3 opinion striking the latest iteration of the eviction ban issued by the Centers for Disease Control (CDC) on Aug. 3. (Roundtable Weekly, Aug. 20). “If a federally imposed eviction moratorium is to continue, Congress must specifically authorize it,” the Justices decided.

  • The gist of the ruling is that the CDC’s public health role could not be stretched so far to encompass the federal ban. “[T]he CDC has imposed a nationwide moratorium on evictions in reliance on a decades-old statute that authorizes it to implement measures like fumigation and pest extermination,” the majority wrote. “It strains credulity to believe that this statute grants the CDC the sweeping authority that it asserts.”
  • The majority recognized the financial burden on landlords deprived of rent payments with no guarantee of recovery. “Despite the CDC’s determination that landlords should bear a significant financial cost of the pandemic, many landlords have modest means” the majority wrote. “And preventing them from evicting tenants who breach their leases intrudes on one of the most fundamental elements of property ownership—the right to exclude.”
  • Three justices in the Court’s liberal minority would have kept the moratorium in place due to the surge of the Delta variant.

Focus on Disbursing Rental Assistance

  • A coalition of national real estate organizations – led by the National Apartment Association and the National Multifamily Housing Council, and including The Real Estate Roundtable – has consistently opposed the CDC’s eviction ban.
  • The groups have called upon Congress to focus on disbursing billions in unspent sums of federal rental assistance appropriated in prior COVID-19 relief bills – instead of destabilizing rental markets with a nationwide eviction ban. (Roundtable Weekly, July 30).
  • The latest figures released by the Treasury Department this week on the status of rent relief disbursements remain disheartening. While more funds are reaching tenants and landlords, only $5.1 billion out of a total $46.5 billion in Emergency Rental Assistance has been distributed by states and localities through the end of July. (AP, Aug. 25)
  • Roundtable President and CEO Jeffrey DeBoer commented, “Federal, state, and local policymakers must act with urgency to ensure that tenants and housing providers in distress due to the pandemic receive the aid the Congress appropriated for them – and help bring stability to our housing markets.” 
  • States have had varying levels of success in getting federal rent assistance out the door.  “Texas and Virginia have distributed the largest percentages of their allocated funding at around 34% and 41% respectively, while New York State hasn’t even doled out 1% of its federal rental assistance.” (U.S. News, Aug. 25).
  • The Treasury Department has a website to help tenants and landlords find rental assistance programs in their local areas. The National Multifamily Housing Council (NMHC) also has an online hub that provides resources for renters and housing providers to access COVID-19 emergency relief.

While the Supreme Court’s ruling is the end point for litigation challenging the Biden Administration’s actions, progressives in Congress could attempt to re-impose the eviction ban via legislative enactment in the coming weeks.

Eviction Moratorium Appeal Denied; Supreme Court Challenge Expected

image Appeals Court DC Circuit

The D.C. Circuit Court today allowed the Biden administration’s latest federal eviction moratorium to remain in effect, denying an Aug. 14 emergency appeal by the Alabama and Georgia Associations of Realtors to overturn the ban. (Politico and Wall Street Journal, Aug. 20)   

The Legal Challenge 

  • The Realtor groups’ challenge was filed immediately after a federal judge’s ruling allowed the latest eviction moratorium – effective through Oct. 3 – to remain in place until higher courts decide its legality. (Wall Street Journal and Law.com, Aug 13)
     
  • The White House stated its latest moratorium from the Centers for Disease Control and Prevention (CDC) is targeted toward areas that have experienced substantial or high levels of Covid-19 transmission. (CDC news release and Wall Street Journal, Aug. 4). The extension would also allow more time for billions in rent relief appropriated by Congress to reach tenants and landlords. (Time, Aug. 3)
  • Previously, the U.S. Supreme Court ruled that an earlier CDC eviction ban could remain in effect through its expiration on July 31, yet indicated the federal agency had overstepped its authority. Justice Kavanaugh wrote in the high court’s 5-4 decision that another extension would require “clear and specific” legislation from Congress. (New York Times, June 29)
     
  • When Congress could not muster last-minute support in late July to pass an extension, the CDC issued its latest moratorium on Aug. 3. (NBC News and Roundtable Weekly, July 30) 

Impact on Housing Providers 

 image Evict Morat July29-2021 letter

  • A coalition of 15 national real estate organizations – including The Real Estate Roundtable –  sent a letter on July 29 to all members of Congress strongly opposing another moratorium extension. The  joint letter called for policymakers to focus on disbursing billions in unspent sums of federal rental assistance appropriated in prior COVID-19 bills – instead of destabilizing rental markets with a legislative eviction moratorium. (Roundtable Weekly, July 30)
  • A massive logjam in states’ disbursement of federal rental aid to tenants and housing providers has compounded the negative economic impact of the eviction moratorium. A National Rental Home Council survey issued in March showed that approximately 23 percent of small landlords leasing single-family rentals were forced to sell at least one, if not all of their properties.
  • Politico also reported on Aug. 14 that nearly 59 percent of tenant households who are behind on rent live in properties with between one and four units – and that 72 percent of those properties are operated by mom-and-pop landlords

The Realtors’ current attempt to end the moratorium, considered this week by the D.C. Circuit Court of Appeals, is likely to be appealed to the Supreme Court next week. 

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CDC Issues New Eviction Moratorium Until Oct. 3; Realtor Groups File Legal Challenge

The Biden administration reversed course this week and issued a new federal eviction moratorium on Aug. 3, responding to pressure from progressive Democrats to allow more time for billions in rent relief appropriated by Congress to reach tenants and landlords. (CDC news release and Wall Street Journal, Aug. 4) 

New 60-Day Eviction Ban 

  • The new ban from the Centers for Disease Control and Prevention (CDC) is in effect until Oct 3.
  • It applies to about 80% of U.S. counties with “substantial” or “high” COVID-19 transmission rates, and covers about 90% of the U.S. population. ( Reuters, Aug 4 and CDC order, Aug. 3)
  • The previous eviction moratorium expired on July 31. A U.S. Supreme Court majority in June indicated the federal-level ban exceeded CDC’s authority.
  • President Biden initially stated that the Supreme Court’s action prevented another CDC extension, and called on Congress to pass 11th-hour legislation establishing a new moratorium. House Democrats last Friday failed to muster enough last-minute votes to pass an extension. ( The Hill, July 30; Roundtable Weekly, July 30) 

Legal Challenge Redux 

  • Upon the Administration’s about-face in issuing the new moratorium, President Biden said it is “likely to face obstacles” in court. (White House remarks, Aug. 3 and Associated Press, Aug. 4)
  • The latest eviction ban prompted the Alabama and Georgia Associations of Realtors to file an emergency motion in D.C. federal trial court before the same judge who previously ruled that the CDC had overstepped its authority in imposing the first eviction moratorium. (Politico and Washington Post and National Association of Realtors’ statement, Aug. 4) 

Need to Accelerate Federal Rent Assistance

  • The Realtor groups’ motion adds more pressure on state and localities to distribute billions allocated by federal policymakers to assist renters and housing providers – an effort that has faced severe bottlenecks and delays.
  • Only 6.5 percent of $46.5 billion allocated by Congress for rental aid has found its way to state and localities in the first half of 2021, according to a recent Treasury Department report.  (Washington Post, July 21 and Bloomberg and July 22)
  • Treasury’s Emergency Rental Assistance program, overseen by Senior Advisor to the President Gene Sperling, now faces a 60-day race for states and localities to distribute funds to tenants and landlords while the newest CDC order is in effect. 

Sperling stated during an Aug. 2 White House press conference that the Emergency Rental Assistance is “so important [because] it helps struggling landlords and struggling tenants. It can pay up to 18 month, forward or backwards, of back rent or back utilities. So, it is a way to make a landlord, who is struggling, whole, while also keeping that tenant and their family safe and secure.” 

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Imminent Expiration of CDC Eviction Moratorium Prompts White House, FHFA Actions to Protect Tenants; Real Estate Groups Counter 11th Hour Attempts at Extension

CDC signage Atlanta

The Biden Administration took steps this week to protect tenants at risk of eviction for non-payment of rent. (PoliticoPro, July 28). Announcements from the White House and the Federal Housing Finance Agency (FHFA) were prompted by the anticipated July 31 expiration of the national moratorium on residential tenant evictions – first enacted by Congress in March 2020, then extended by the Centers for Disease Control (CDC), and scheduled to sunset tomorrow. (Roundtable Weekly, June 25)

Congressional Action     

  • In response to the CDC moratorium’s expected lapse, Congressional Democrats today pursued an 11th hour attempt to resuscitate the eviction ban through legislation. The Hill reported late today that efforts to extend the federal moratorium “fell far short amid resistance from moderates and housing industry groups.” House Speaker Nancy Pelosi (D-CA) subsequently urged the CDC to unilaterally extend the current moratorium again. Politico reported earlier today that House Democrats were considering extending the moratorium to mid-October – and that there was not a plan yet to get the vote through Senate Republicans.

  • A coalition of 15 national real estate organizations – including The Real Estate Roundtable – sent a letter today to all members of Congress strongly opposing another moratorium extension. The joint letter called for policymakers to focus on disbursing the vast unspent sums of federal rental assistance appropriated in prior COVID-19 bills – instead of destabilizing rental markets with a new legislative eviction moratorium.
  • Roundtable President and CEO Jeffrey DeBoer commented, “In the first half of this year, Congress rightly appropriated more than $45 billion for rental assistance, but so far states have distributed less than 10 percent of that assistance. If the moratorium is extended, it needs to be more tightly targeted to people in distress due to the pandemic, including housing providers.”

Federal Actions Supporting Tenants 

FHFA logo

  • The FHFA announced on Wednesday that owners of all multifamily properties with a federally-backed mortgage must provide a 30-day written notice to a tenant before requiring removal for not paying rent. 
  • [Most states already have laws requiring some “wait period” or notice to tenants before eviction proceedings can commence, though typically not as long as 30 days according to this summary.]
  • The FHFA’s notice requirement had been limited to situations where a landlord received mortgage forbearance protections. Now, the FHFA requires the tenants’ notice regardless of whether the landlord benefits from delayed loan payments – where the debt is backed by Fannie Mae, Freddie Mac, or a federal agency. (See FHFA fact sheet).
  • The White House on June 24 released its fact sheet, “Initiatives to Promote Housing Stability by Supporting Vulnerable Tenants and Preventing Foreclosures.” The fact sheet also references “strict adherence” to tenant notice requirements and offers further measures such as:
    • Accelerating disbursement of Emergency Rental Assistance (ERA) to get the funds appropriated by Congress into the hands of landlords and tenants;
    • Providing a streamlined payment option so large landlords can receive “bundled” payments from multiple eligible tenants; and
        
    • Urging state and local courts to participate in “eviction diversion efforts” that encourage landlords and tenants to access ERA funds before litigation is pursued.   
  • The White House released another fact sheet on Wednesday summarizing how private sector companies, non-profits, and government agencies are notifying Americans about available emergency rental assistance – including a national “rental assistance finder” produced by the Consumer Financial Protection Bureau (CFPB) that helps tenants apply for ERA funds in their localities.

Rental Assistance Delays 

Treasury Dept building close

  • Severe delays in getting federal rental aid to those in need have added another layer of pressure on tenants at risk of eviction – as well as on housing providers who are unable to collect rent, yet remain responsible for taxes, maintenance and other property costs. (Wall Street Journal, July 22)
  • Only 6.5 percent of $46.5 billion allocated by Congress for rental aid has found its way to state and localities in the first half of 2021, according to a recent Treasury Department report.  (Washington Post, July 21 and Bloomberg and July 22)
     
  • Treasury’s report also notes some progress – more than $1.5 billion in rental assistance reached households in June, which is more than all of the money disbursed between January and May combined. 
     
  • The Roundtable is part of a broad real estate coalition that has consistently urged state, county and municipal officials to distribute the billions in allocated federal funds as soon as possible. (Coalition letter, April 15)
  • The National Multifamily Housing Council (NMHC) on July 26 urged the leadership of the Senate Banking and House Financial Services Committees to push for the swift distribution of rental assistance funds.  
  • Additionally, a recent NMHC survey of apartment owners and managers shows that 100 percent of multifamily firms surveyed worked with residents facing financial hardships since the onset of the COVID-19 crisis. 

Biden’s “Hands-Tied” by SCOTUS

The U.S. Supreme Court building

  • A U.S. Supreme Court majority indicated last month that the CDC overstepped its authority in issuing the federal-level eviction ban, with Justice Kavanaugh writing that “clear and specific” legislation from Congress would be necessary to extend the moratorium past July 31.  (New York Times, June 30)  The Biden Administration reportedly “found its hands to be tied” by the high Court’s decision. (PoliticoPro, July 29)
  • The White House issued a July 29 statement, noting, “President Biden would have strongly supported a decision by the CDC to further extend this eviction moratorium to protect renters at this moment of heightened vulnerability. Unfortunately, the Supreme Court has made clear that this option is no longer available.”
  • The statement also requested the U.S. Departments of Housing and Urban Development, Agriculture, and Veterans Affairs to extend their respective eviction moratoria through the end of September “to provide continued protection for households living in federally-insured, single-family properties.” 

Yesterday’s statement from the administration sparked today’s last-minute scramble in Congress. White House Press Secretary Jen Pskai said, “In light of the Supreme Court’s ruling, the President calls on Congress to extend the eviction moratorium to protect such vulnerable renters and their families without delay.” 

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CDC Issues Final Extension of National Eviction Moratorium until July 31; California Plans to Reimburse Housing Providers for Past-Due Rent

CDC sign outdoor

The Centers for Disease Control and Prevention (CDC) yesterday issued a final extension of the national moratorium on evictions through July 31 as the Biden administration announced a series of actions involving several federal agencies on housing affordability and evictions. (White House Fact Sheet, Associated Press, Washington Post and New York Times, June 24)

Sluggish Aid Distribution

  • The CDC indicated its action would be the final extension of the federal-level tenant eviction moratorium, first enacted by Congress in March 2020 through the CARES Act pandemic relief law. “Keeping people in their homes and out of crowded or congregate settings — like homeless shelters — by preventing evictions is a key step in helping to stop the spread of COVID-19,” according to the June 24 CDC announcement. (Congressional Research Service, Federal Eviction Moratoriums)
  • The extension also allows more time for federal officials to improve the sluggish distribution of billons in pandemic housing aid authorized by Congress. The urgent financial needs of millions of tenants nationwide have overwhelmed local officials struggling to provide financial assistance under current rules. (Wall Street Journal, June 7)
  • The White House’s announcement yesterday of actions to help state and local governments prevent evictions included a planned summit on housing affordability and evictions, along with new guidance from the Treasury Department aimed at streamlining distribution of emergency aid for renters behind on payment to their housing providers.
  • The Federal Housing Finance Agency (FHFA) yesterday also extended the foreclosure moratorium for mortgages backed by Fannie Mae and Freddie Mac until July 31. (FHFA news release)

Tenants and Housing Providers

  • The National Multifamily Housing Council (NMHC) on June 24 stated, “The continuation of a nationwide, one-size-fits-all, federal eviction moratorium is out of step with the significant progress made in controlling COVID-19 and restoring the economy. Instead of this blanket federal policy, this pandemic has already shown that targeted, efficient relief works.   
  • The statement also noted that earlier this month NMHC released Principles to Work with Residents, which offer practical steps housing providers can take to work hand-in-hand with residents and demonstrate the good faith with which property owners and managers have supported their residents.  

State and Local Action

California Governor Gavin Newsom

  • California Gov. Gavin Newsom, above, and state legislators today agreed to a plan to reimburse housing providers for past-due rent incurred by lower-income tenants during the state’s pandemic eviction moratorium – along with an extension of the moratorium until Sept. 30. (Los Angeles Times, June 25)
  • A senior housing advisor to Newsom told the Associated Press that California likely has enough money from the $5.2 billion in multiple aid packages approved by Congress to cover all of the unpaid rent in the state.

  • Other states and cities have a variety of deadlines related to their own eviction moratoria. CNBC reports that at least 28 state rental aid programs bar landlords from evicting tenants for at least the time period covered by the aid – and in some cases for between 30 and 90 days afterward.

The Roundtable is part of a broad real estate coalition that has consistently urged state, county and municipal officials to distribute the billions in allocated federal funds as soon as possible. (Coalition letter, April 15)

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Realtor Coalition Submits Emergency Appeal to Supreme Court to Reject CDC Eviction Moratorium Ban

The U.S. Supreme Court building

A coalition of Realtor associations on June 3 submitted an emergency appeal to the Supreme Court to reject the U.S. Centers for Disease Control and Prevention (CDC) national eviction moratorium, which is scheduled to expire June 30. (SCOTUSblog, June 3)

Why It Matters

  • The federal eviction moratorium – originally enacted by Congress more than a year ago in the CARES Act – was extended by both the Trump and Biden Administrations by executive orders to prevent mass evictions in the face of a public health emergency. A further extension by President Biden is likely. 
  • The Supreme Court appeal in Alabama Association of Realtors v. Department of Health and Human Services comes after a DC Circuit court this week upheld a federal judge’s May 5 ruling, which allowed the moratorium to remain in effect. (Roundtable Weekly, May 7)
  • The Realtor coalition argued in its 35-page pleading to the high court that “Congress never gave the CDC the staggering amount of power it now claims.” (NBCNews and CNN, June 3)
  • The filing also emphasized that the CDC’s moratorium “shifted the pandemic’s financial burdens from the nation’s 30 to 40 million renters to its 10 to 11 million landlords—most of whom, like applicants, are individuals and small businesses—resulting in over $13 billion in unpaid rent per month.” (Case number 21-5093 in the U.S. Court of Appeals for the D.C. Circuit.)
  • National Multifamily Housing Council CEO Doug Bibby on June 2 told Connect CRE that rental housing is dominated by non-institutional, ‘mom and pop” property owners. Bibby stated, “When eviction moratoria policies are treated as ‘rental holidays,’ these individual property owners tend to suffer disproportionately – as do renters, who end up with fewer options.”
  • Bibby added, “While federal policymakers ultimately provided $46.5 billion for emergency rental assistance, the continuation of eviction moratoriums has renewed focus on broader questions of eviction practices, as well as raised concerns about the disruption in the market once the moratoriums expire.” (ConnectCRE, June 2)
  • The Federal Housing Finance Agency announced yesterday that it is extending for a third time the ongoing moratorium on evictions on multifamily properties backed by Fannie Mae and Freddie Mac, which the agency oversees. The housing regulator’s extension is now in effect until the end of September, preventing affected housing providers from evicting tenants for not paying rent, or charging late fees for unpaid rent. (Reuters, June 3)

Distribution Problems 

Capitol Dome Dusk

  • Congress approved $25 billion of emergency rental assistance in December 2020 under the Consolidated Appropriations Act. An additional $21.6 billion was allocated in March 2021 under the American Rescue Plan Act. The Treasury Department announced on May 7 that it was releasing the second allocation, along with new guidance for local municipalities administering emergency rental assistance programs. (Roundtable Weekly, May 14)
  • State and local authorities have been overwhelmed with how to allocate the influx of funds, leaving many tenants and housing providers waiting weeks or months for the assistance. (Washington Post, June 4 and Wall Street Journal, April 13)
  • The Roundtable is part of a broad real estate coalition that has urged state, county and municipal officials to distribute the allocated federal funds as soon as possible. (Coalition letter, April 15)
  • The coalition letter emphasized the need “to quickly and fully allocate available American Rescue Plan federal funds to provide assistance to renters, consumer-facing small businesses, and impacted industries such as retail, tourism, travel, and hospitality that are having trouble paying rents, mortgages or remaining viable enterprises due to the COVID-19 pandemic.”
  • The letter adds, “Such assistance would make a big difference in the lives of thousands upon thousands of COVID-19 affected renters and businesses in their cities, counties, and states – and would also provide stability to the buildings and communities in which they live.

As this week’s emergency appeal is considered by to the Supreme Court, there are several states that will continue to ban evictions beyond June 30. Additionally, the state of Washington last month guaranteed tenants facing eviction the right to counsel. Maryland and Connecticut are considering similar measures. (CNBC, June 3)

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Treasury Releases New Guidance for Emergency Rental Assistance; YIMBY Act Reintroduced

U.S. Treasury Department
US Treasury Department in Washington

The Treasury Department on May 7 issued new guidance for local municipalities administering emergency rental assistance programs, with rules aimed at directly assisting more renters in less time. The rules simplify applications for aid, expand covered costs such as moving expenses and hotel stays, and require programs to help tenants directly even if their housing providers choose not to participate. (New York Times, May 7) 

Distribution Challenges 

  • Congress approved $25 billion of emergency rental assistance in December 2020 under the Consolidated Appropriations Act. An additional $21.6 billion was allocated in March 2021 under the American Rescue Plan Act. The Treasury Department ‘s May 7 announcement releasing the second allocation was accompanied by its new guidance. (National Multifamily Housing Council, May 10)
  • State and local authorities have been overwhelmed with how to allocate the influx of funds, leaving many tenants and housing providers waiting weeks or months for the assistance. (Washington Post, April 8 and Wall Street Journal, April 13)  
  • The nine “enhanced policies” from Treasury aim to ensure that states and localities can move quickly to address the housing affordability crisis wrought by the pandemic. (Treasury’s May 7 Fact Sheet and FAQs on Emergency Rental Assistance)
  • The new guidance comes days after a federal judge overturned the U.S. Centers for Disease Control and Prevention (CDC) eviction moratorium, which is scheduled to expire June 30. Judge Dabney L. Friedrich of the U.S. District Court for the District of Columbia also issued an order on May 5 that temporarily allows the moratorium to continue while she considers an emergency appeal by the Biden Administration.  (Roundtable Weekly, May 7)  

Rental Assistance Support 

  • The Roundtable is part of a broad real estate coalition that recently urged state, county and municipal officials to distribute the allocated federal funds as soon as possible. (Coalition letter, April 15)
     
  • The coalition letter emphasized the need “to quickly and fully allocate available American Rescue Plan federal funds to provide assistance to renters, consumer-facing small businesses, and impacted industries such as retail, tourism, travel, and hospitality that are having trouble paying rents, mortgages or remaining viable enterprises due to the COVID-19 pandemic.” 

YIMBY Reintroduced 

Window in house. Architectural elements. Construction materials. Building house.
  • The bipartisan “Yes In My Backyard (YIMBY) Act” was reintroduced on May 13 in the House by Reps. Trey Hollingsworth (R-IN) and Derek Kilmer (D-WA).
  • The bill would require local governments applying for federal housing development funds through the Community Development Block Grant (CDBG) program to report whether they have enacted policies to reduce counterproductive regulations that may affect affordability. (Hollingsworth news release and text of the bill)  
     
  • The Real Estate Roundtable is one of many organizations that have endorsed YIMBY, which passed the House last year but stalled in the Senate. The Roundtable also urged support for the YIMBY Act in comments filed with HUD in January 2020.  (Roundtable Weekly, March 6, 2020)
     
  • A Senate YIMBY companion bill was also introduced May 13 by Sens Todd Young (R-IN) and Brian Schatz (D-HI).
     
  • “Discriminatory local zoning and land use policies drive up housing costs in communities across America,” said Sen. Young. “These policies exacerbate the housing affordability crisis and stifle the ability of Americans to move to areas of opportunity. My legislation will require cities, towns, and rural areas across America to face this reality under a new level of transparency and encourage them to cut these harmful regulations.” (Sen. Young news release, May 13)
     
  • “The YIMBY Act complements the many pro-housing proposals currently before Congress,” said Mike Kingsella, Executive Director of Up for Growth Action. “The YIMBY Act will empower communities across the country to clear the path for housing that is more affordable, equitable, and sustainable.” (Up for Growth’s YIMBY Fact Sheet)

The Roundtable and its coalition partners will continue to urge lawmakers to pass the YIMBY Act and similar legislation that eases burdensome rules that inhibit affordable housing development.

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Federal Judge Overturns CDC’s National Eviction Moratorium; Justice Department Appeals

Campus sign for U.S. Centers for Disease Control and Prevention (CDC)

A federal judge on May 5 ruled that the U.S. Centers for Disease Control and Prevention (CDC) exceeded its authority by issuing its national eviction moratorium, which is scheduled to expire June 30. (New York Times, May 6)

 National Impact 

  • The federal eviction moratorium – originally enacted by Congress more than a year ago in the CARES Act – was extended by both the Trump and Biden Administrations by executive orders to prevent mass evictions in the face of a public health emergency. (BGov, May 5)
  • The 20-page ruling by Judge Dabney Friedrich of the U.S. District Court for the District of Columbia vacates the moratorium on a nationwide basis, yet does not affect similar eviction moratoriums enacted at the state or local levels. (Wall Street Journal, May 5)
  • The order states, “It is the role of the political branches, and not the courts, to assess the merits of policy measures designed to combat the spread of disease, even during a global pandemic. The question for the Court is a narrow one: Does the Public Health Service Act grant the CDC the legal authority to impose a nationwide eviction moratorium? It does not.” (Washington Post, May 5)
  • The Georgia and Alabama state Realtor associations, along with two housing providers and their property management companies, filed the lawsuit against the U.S. Department of Health and Human Services. (Realtor Magazine, April 29) 

Justice Department Appeal 

Justice Department exterior

  • Brian M. Boynton, Acting Assistant Attorney General for the Justice Department’s Civil Division, stated on May 5 that the department would file an appeal of the decision and an emergency stay of the order.
  • Boynton stated, “The Department of Justice respectfully disagrees with today’s decision of the district court in Alabama Association of Realtors v. HHS concluding that the moratorium exceeds CDC’s statutory authority to protect public health. In the department’s view, that decision conflicts with the text of the statute, Congress’s ratification of the moratorium, and the rulings of other courts.”  
  • Judge Friedrich also issued an order late on May 5 that would temporarily allow the moratorium to continue while she considers the Biden administration’s emergency request. The temporary stay is in place “to give the court time to consider the merits” of arguments from both sides. (BGov, May 6)

Rental Assistance Distribution

Rental Building

  • The National  Multifamily Housing Council (NMHC) responded to the ruling: “What has become clear over the course of the pandemic and resulting financial distress is that the best way to keep people in their homes is to provide them the resources necessary to meet their housing obligations and other costs. To that end, lawmakers in Congress fulfilled their responsibilities and passed almost $50 billion in rental assistance, as well as other supports like stimulus checks and extended unemployment benefits.” 
  • Congress has enacted billions in aid to help renters, but state and local authorities are overwhelmed with how to allocate the influx of funds, leaving many tenants and housing providers waiting weeks or months for the assistance.  (Washington Post, April 8 and Wall Street Journal, April 13)
    • The Roundtable is part of a broad real estate coalition that recently urged state, county and municipal officials to distribute the allocated federal funds as soon as possible. (Coalition letter, April 15)
       
    • The coalition letter emphasized the need “to quickly and fully allocate available American Rescue Plan federal funds to provide assistance to renters, consumer-facing small businesses, and impacted industries such as retail, tourism, travel, and hospitality that are having trouble paying rents, mortgages or remaining viable enterprises due to the COVID-19 pandemic.”
       
    • The letter adds, “Such assistance would make a big difference in the lives of thousands upon thousands of COVID-19 affected renters and businesses in their cities, counties, and states – and would also provide stability to the buildings and communities in which they live.

    Additional guidance from the Treasury Department on disbursement of federal rental assistance funds is expected this month. 

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