The nationwide moratorium on evictions was put into place last year by the Trump administration as the country was dealing with the economic shutdown due to the pandemic. This ban was put into place using public health powers granted to the Centers for Disease Control and Prevention (CDC) during health emergencies. The ban was most recently extended through June by the Biden administration.
Although overall the eviction ban has been well received by tenants nationwide, many landlords have been left with significant financial hardships. With many of these landlords being “mom and pop” operations, the eviction moratorium has essentially left them with no income while still having to cover the costs of rental properties.
U.S. Court strikes down eviction ban
This week, U.S. District Court Judge Dabney L. Friedrich of the District of Columbia struck down the nationwide eviction moratorium Wednesday, calling it unlawful. Friedrich’s ruling applies nationwide, though the Department of Justice has appealed the decision. In her 20-page ruling, Judge Friedrich 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.”
A stay order on the eviction ban ruling
Late Wednesday, Judge Friedrich issued a stay order on her previous ruling that ended the eviction moratorium effective immediately. Although the Department of Justice filed an emergency appeal in this case, Judge Friedrich cited the court needing more time to consider the motion and any potential opposition. Therefore, this administrative stay means there will be no immediate impact on the ban. As a reminder the eviction was previously extended in March to go through the end of June.
As the economy continues to open back up throughout the country, many believe that the eviction moratorium should be ended. It is important to note that the majority of landlords in this country are “mom and pop” investors and not large institutions that are able to weather the impact as easily. The reopening of the economy throughout the country should continue to benefit both tenants and landlords. In fact, a growing challenge throughout the country is being able to find workers. Many businesses are reporting difficulties with hiring employees.
In closing, it is believed by most people that the eviction moratorium will end at the end of June, if not sooner. In South Florida, the rental market is as strong as it has ever been. As a matter of fact, we have actually had some of our listings get rented before we could even place a sign in the yard. In several cases, the tenants are renting these homes sight unseen from different states. If you are considering adding an income property to your real estate portfolio, this may be a great time. Contact Live South Florida Realty, Inc. today & we will be happy to assist you.