Renters Prepare For A Tidal Wave Of Evictions

Now that the Supreme Court has officially ended the CDC’s series of eviction moratoriums, renters across the country are scrambling to get their Emergency Rental Assistance (ERA) checks. Eviction courts are open for business and all landlords, except for those in a handful of states and counties, can obtain an eviction for unpaid rent.

The Supreme Court’s decision to end the moratorium — in a 6 to 3 vote, with all three liberal judges dissenting — came just weeks after President Biden’s decision to extend the moratorium in counties with high COVID-19 rates. The revised moratorium would apply to those still affected by the pandemic, and last until October 3. 

Although the government dedicated $47 billion towards the Emergency Rental Assistance (ERA) fund to prevent evictions, only 11% of it was distributed. The Treasury Department stated last week that state and local officials are struggling to reach millions of renters.

The ERA application process has been a major roadblock for many tenants seeking assistance. Jason Knowling, a renter from Gulfport, Mississippi, told the Wall Street Journal that his rental assistance was slow to approve because he was waiting to receive documents from his former employer. In the meantime, Knowling lost his job and his car broke down, costing him $1,200. He inevitably fell behind on rent, and his landlord sent him an eviction notice. 

Knowling will not be the only one unfortunate enough to run out of time. According to the U.S. Census Bureau’s Household Pulse Survey, 3.5 million people in the U.S. said they anticipate eviction in the next two months. Although state and local officials have accelerated the pace of distributing funds, it might not be enough to keep up with landlords who are currently filing eviction proceedings. According to the U.S. Treasury Department, state officials delivered $5.1 billion in July alone, which is a major step up from June’s $3 billion and May’s $1.5 billion. 

U.S. Treasury Secretary Janet Yellen addressed local and state leaders to do a better job of distributing aid by making the application process more simple. In a joint letter to state officials, Secretary Yellen also encouraged all states to extend their eviction moratorium at the President’s behest. “Local leaders should ensure that all renters are given a chance to apply for rental assistance before eviction proceedings begin,” Yellen stated.

On the other hand, we can’t expect landlords to remain patient forever. As a result of CDC policies, landlords are now billions of dollars in debt. Individually, landlords have struggled to keep up with mortgage, tax, and insurance payments without rental income. In fact, the court’s ruling acknowledges this by stating, “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.”

A study by the Aspen Institute found that the average debt owed to each landlord exceeded $3,000 per tenant, with significant variation based on time away from work, family needs, and other factors. Collectively, these households owe about $20 billion.

It’s easy to see how desperate landlords are to push these eviction filings through, especially when looking at the three day period after the last moratorium expired. When the last CDC moratorium expired on July 31, it took three days for the Biden administration to issue a revised eviction moratorium. In that brief period, hundreds of landlords fled to eviction courts to push eviction proceedings through in Michigan, Colorado, Rhode Island, and elsewhere.

Zach Neumann, an attorney with the Colorado-based Eviction Defense Project, stated that many tenants are now racing against the clock to receive their rental assistance. “The real question is will they be able to get their application in, get their application processed, and get that check to arrive before they get evicted,” Neumann said.

House Speaker Nancy Pelosi called for an immediate extension, stating it was a “moral imperative” to prevent Americans from being put out of their homes. Members of Biden’s administration believe the Supreme Court’s decision will set off another wave of dire consequences. 

“As a result of this ruling, families will face the painful impact of evictions, and communities across the country will face greater risk of exposure to Covid-19,” said Jen Psaki, the White House press secretary. 

Although Secretary Yellen and Democratic members of Congress have expressed concern over the rise of the delta variant, people have yet to declare another moratorium is needed. In her letter, Secretary Yellen stated, “The spread of the Delta variant has led to a rise in cases, many Americans are just getting back on their feet from the economic downturn, and millions remain at risk of eviction.”

A tidal wave of evictions is expected to take place. Currently, more than 15 million people in 6.5 million households are behind on rent payments. Not only are they at risk for eviction, but also civil lawsuits for unpaid rent, and aggressive debt collection tactics. According to the Aspen Institute, 50% of those who are behind on rent anticipate that they will be evicted in the next two months.

Ultimately, the court ruling has pushed the moratorium issue back to Congress, leaving the matter up to debate. However, states are free to institute their own moratorium, although not federally enforced. States such as California, Oregon, New York, Georgia, Massachusetts, Texas, and Washington have decided to extend their own moratoriums, so their renters are not left completely unprotected. 

For more information, read the full New York Times article, Supreme Court Ends Biden’s Eviction Moratorium.