On Thursday (August 26th, 2021), the U.S. Supreme Court invalidated the CDC eviction moratorium. The underlying case was originally filed The Alabama Association of Realtors and contended that the CDC eviction moratorium was unconstitutional. The case will now go through a slow appeal process, but during that time the eviction moratorium cannot be enforced.
Here are some excerpts from the U.S. Supreme Court’s ruling:
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- “The moratorium has put the applicants, along with millions of landlords across the country, at risk of irreparable harm by depriving them of rent payments with no guarantee of eventual recovery.”
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- “Despite the CDC’s determination that landlords should bear a significant financial cost of the pandemic, many landlords have modest means. 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.”
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- “It is indisputable that the public has a strong interest in combating the spread of the COVID–19 Delta variant. But our system does not permit agencies to act unlawfully even in pursuit of desirable ends.”
The case is not finished, but the U.S. Supreme Court revealed their opinion that, “the applicants (the realtors) not only have a substantial likelihood of success on the merits—it is difficult to imagine them losing.” It appears that the Supreme Court did not approve of the executive branch entering this order, which they believe greatly exceeds the powers of the CDC. The Court also stated that any other action to halt evictions would have to come from the legislature.
What Now?
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- For residents who have not paid for months, landlords can complete evictions and obtain writs of restitution.
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- For residents that are cooperating and following payment plans, it’s likely best for landlords to continue to work with them as much as possible. Evictions should be a last resort and only used if necessary.
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- Although the CDC moratorium is over, other restrictions and requirements still exist and landlords will need to follow those procedures when proceeding with an eviction.
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- There will likely be additional actions by other federal agencies restricting properties with federal mortgages and those who participate in federal programs. However, the federal legislature is not likely to pass a national eviction moratorium again.
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- Rental assistance programs are still available.
About Rentals America
Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management and we’re here to help landlords navigate the rental market.
