CDC and North Carolina Eviction Moratoriums Extended to June 30

Industry News,

On Monday, the CDC announced that its federal eviction moratorium order will be extended through June 30, 2021. It was set to expire on March 31st. The announcement included modifications, while the core elements of the order remain in effect. You will see an all-member alert go out shortly. Also, be on the lookout for additional outreach to association partners and members as NAA updates its member guidance accordingly.

Three items of particular concern stand out from the CDC’s announcement:

  • While the order does not prohibit evictions for engaging in criminal activity while on the leased premises, covered persons may not be evicted on the sole basis that they are alleged to have committed the crime of trespass (or similar state-law offense); 
  • Individuals who have, who might have been exposed to, or who might have COVID-19 should not be evicted on the grounds that they pose a health or safety threat to other residents; and
  • Covered persons may use any written document in place of the declaration form, if it includes the required information in the form, or use a form translated into other languages.

The Apartment Industry is strongly opposed to eviction moratoriums and their continued extensions or expansions, and we continue to push back against this dangerous and damaging government overreach. We will keep you abreast of new developments as all options remain on the table.

GCAA provided the following statement to the media along with an infographic, provided by the National Apartment Association, that demonstrates the impact of the eviction moratorium on the Charlotte market. The data estimates rental income, property value and property tax revenue losses rental property owners and operators may face due to eviction moratoria. 

GCAA Statement
For the last year, local governments and landlords have worked together to ensure that eligible renters received assistance and were able to stay in their homes. It is unfortunate that policymakers continue to rely on eviction moratoria and inadequate emergency rent/utility funding to solve the crisis despite the fact that struggling renters continue to accrue insurmountable debt that will eventually become due. 

“Stop gap policies like eviction moratoria jeopardize the ability of housing providers to pay their debt service and sustain rental housing portfolios,” said Deidre Wilson, Greater Charlotte Apartment Association Board President. “Landlords have been carrying the burden for almost an entire year and the time is drawing near when they will no longer be able to do so.”

Cancelling rent is no more an option than asking the grocery stores to not expect payment for a basic necessity like food. Ultimately, our Association’s perspective is that you cannot have eviction moratoria without having rental assistance that is as expedient in its positive benefit to rental housing providers as the moratorium is to renters.

In addition, the Consumer Financial Protection Bureau (CFPB) announced stepped up enforcement efforts “to help stop illegal evictions and protect American consumers facing economic hardship due to COVID-19”.  The NAA will continue conversations with the Administration about this and will update us as we learn more.

Yesterday, Governor Cooper also issued Executive Order 206, EXTENDING ASSISTANCE FOR NORTH CAROLINIANS AT RISK OF EVICTION which will remain in effect through and including June 30, 2021. The law stipulates that the Order shall be enforced by state and local law enforcement officers and a violation of this Executive Order may be subject to prosecution pursuant to N.C. Gen. Stat. § 166A-19 .30( d) and is punishable as a Class 2 misdemeanor in accordance with N.C. Gen. Stat. § 14-288.20A.