American Realty Advisors


Market Commentary, September 03, 2020

CDC Issues Guidelines for Renter Eviction Protection

September 3, 2020

This week the Federal Government moved to extend eviction protections for certain renters throughout the United States. The regulations resulting from this announcement are complex and we are providing the following as a summary of the most substantive provisions:  

The Centers for Disease Control and Prevention (CDC) issued the protections under its pandemic powers and these apply to all properties nationwide. The CDC Order is expected to become effective on Friday, September 4, 2020.

We are aware of the impact that the pandemic has had on renters and the dislocation that can occur due to evictions for the nonpayment of rent.  

The following are the key terms of the CDC order as we believe they will be implemented:

  • Protects renters on all residential properties.
  • Prevents evictions on covered renters through December 31, 2020. 
  • Renters are still required to pay rent and follow all other terms of the lease, including late fees.
  • Landlords are able to charge late fees under the lease. 
  • Evictions are permitted in the case of non-rent breaches of the lease, (e.g. committing a crime on the property). 
  • Only protects covered renters who:

- expect to earn no more than $99,000 in annual income for calendar year 2020 (or no more than $198,000 if filing a joint tax return);

- did not have to report any income in 2019 to the IRS; or 

- received an Economic Impact Payment (stimulus check) under Section 2201 of the CARES Act.  


  • Requires renters seeking protection to provide landlord with a declaration, signed under the penalty of perjury by all adult leaseholders. In the declaration, the renter must state that they

- have used best efforts to obtain all government assistance for rent or housing; 

- fall under the income limits or have received an Economic Impact Payment (stimulus check); 

- cannot pay full rent due to substantial loss of household income, loss of compensable hours of work or wages, layoffs, or extraordinary out-of-pocket medical expenses;

are using best efforts to make timely partial payments that are as close to the full payment as the individual’s circumstances may permit; 

- would, if evicted, likely become homeless, need to move into a homeless shelter, or need to move into a new residence shared by other people who live in close quarters; 

- understand that they must still pay rent and comply with other lease obligations; 

- understand that late fees for not paying rent on time as required by their lease may still be charged;

- understand that failure to bring their account current at the end of this temporary halt on evictions (currently December 31, 2020) may subject them to eviction. 

It is not yet clear to what extent these guidelines will be implemented and how many rental households will be affected. In addition, the impact this will have on valuations of multi-family investments is also unclear. Although we will not be making any immediate changes to our investments as a direct result of this implementation, we will continue to monitor these developments closely as they unfold and will provide updates as the situation becomes more clear.

Stanley L. Iezman
Chairman and CEO

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