The Coronavirus is no doubt causing a great deal of stress, anxiety and fear, not only about our health but that of our friends and loved ones. This pandemic is also have a devastating impact on our economy. As a result, it not surprising that on Friday, the President signed into law the “Coronavirus Aid, Relief and Economic Security Act” (CARES Act ). While many already are aware of the stimulus checks that will be sent to individuals and families, the Act is actually far more reaching. For example, it contains provisions that concern unemployment, the Bankruptcy Code, student loans and evictions. It is this last topic that is the subject of this discussion.
Section 4024 of the CARES Act imposes a temporary moratorium (120 days) on all non-payment of rent cases for housing authority that receive federal funds. The moratorium would also extend to evictions based on nonpayment of other fees or charges. The Act states this moratorium concerns all “covered property”. “Covered Property” is defined as any property that participates in a “covered housing program (as defined in section 41411(a) of the Violence Against Women Act of 1994 (34 U.S.C. 12491(a) … ”. The CARES Act does not impact any of the housing protections provided by VAWA but it is presumed that the reference to VAWA (specifically its use of VAWA’s definition of “covered housing program”) was a quick and simple way to extend the moratorium to most federal housing programs. For instance, VAWA’s definition of “covered housing program” references 42 U.S.C §1437d and 1437f which concerns public housing and Section 8 programs (both HCVP and project-based), respectively. Under that same definition is included the Low Income Housing Tax Credit program (26 U.S.C. §42), the National Affordable Housing Act (42 U.S.C. §8013), the Homeless Assistance Act (42 U.S.C. §11360, et seq.) and affordable housing for seniors (12 USC. §1701q). As a result, many federal programs would be included in the 120-day moratorium.
It is worth noting that the Act does not impact evictions that are not based on nonpayment of rent. So, federally funded housing authorities could still serve pre-termination notices and notices to quit based on nuisance, serious nuisance, and other lease violations. Obviously, the prosecution of those cases here in Connecticut would be hampered by the current closure of all housing courts, but, at least, the notices could be served and when the courts reopen, the necessary notices will be in place. In addition, the CARES Act does not impact housing authorities or programs that receive state funding. Those housing authorities (at last at this time) are free to serve notices and file eviction complaints with the Superior Court.
For more information or if you have any specific questions, please contact
Michael S. Wrona | wrona@halloransage.com | 860.297.4626