The CDC’s recent announcement of a nationwide moratorium on evictions is the most recent action by the federal government that falls woefully short in addressing the amplified housing crisis during the COVID-19 pandemic.
The CDC’s 37-page order does a lot to confuse property owners, judges and residents who may be struggling to pay rent – and not enough to help residents in need. In fact, the moratorium provides no financial assistance to residents who have been impacted by the COVID-19 crisis and are unable to pay rent, while further stating that all outstanding balances including all back rent owed and late payment penalties (if charged) must be paid by December 31.
To say the least, the multifamily housing industry is extremely disappointed the federal government has made this move without including any direct financial assistance to residents or property owners that could allow them to forgive rent owed. If Congress or the President does not immediately appropriate sufficient emergency rental assistance to fill the gap created in thousands of rental housing communities here in metro Atlanta and across the country, the moratorium risks creating a cascade that will further harm the economy, exacerbate the need for housing affordability, and cause significant damage to the rental housing industry.
Credit: contributed
Credit: contributed
Rental property owners have numerous financial obligations, including mortgages, utilities, insurance, taxes and employee payroll for essential onsite and support staff, for which little to no financial relief has been made available throughout the pandemic. When residents are unable to pay rent, owners are then at risk of falling short of their fiscal responsibilities, putting communities and their residents at further risk for housing insecurity while placing owners' employees at risk for job insecurity. Each of these financial obligations that rent payments provide for have great economic importance – from property taxes that finance schools, emergency services and other local needs, to investor returns that include public pensions and 401(k) plans.
No other industry is being asked to carry the full financial burden of this crisis in this way. Grocery stores and pharmacies have not been asked to give away food and medicine, though these commodities are just as essential. I say this not to undermine the gravity of housing instability, but to underscore the complexity of this issue and the critical need for financial subsidy in order for the rental housing industry to survive this pandemic.
Eviction is a deeply sensitive issue, further heightened during this economic and public health crisis, that our members do not take lightly. Since the onset of the COVID-19 pandemic, they have been continually adjusting their business operations, with the health, safety and stability of their residents being the highest priority.
Balancing residents' needs for financial accommodations and flexibility with their own financial obligations continues to be the most challenging aspect of this crisis. Over the past five months, our members, whether their properties have been affected by federal or local eviction moratoria or not, have been desperately working to keep residents from falling too far behind by entering into flexible payment plans and rent deferral programs, waiving fees and late payment penalties, and helping residents apply for grant funding and financial assistance through local nonprofits. Even before this recent announcement of a national eviction moratorium, we heard from property owners large and small that this flexibility and assistance is continuing, despite the expiration of the CARES Act moratorium.
Professionals in our industry value their residents first and foremost and recognize the partnership with them in sustaining the rental housing industry through these unprecedented times. We understand the emotional and financial stress that many of our residents are facing and remain committed to working with them through this crisis. The priority is always to keep residents in their homes – and filing for an eviction is an absolute last resort when no agreement can be reached.
Municipalities like Atlanta and Lawrenceville are leading the way in our region by using their CARES Act relief dollars to set up emergency rental assistance funds for residents who need it most. But these efforts barely begin to move the needle when we talk about the need for direct subsidy to renters and property owners alike.
We must have the support and partnership of local, state and federal government, nonprofit organizations and the philanthropic community to help us keep our residents housed without an insurmountable mountain of financial and economic damage.
Jim Fowler is president of the Atlanta Apartment Association, the multifamily housing trade association for the Atlanta metropolitan area with over 1,450 member companies consisting of 370 companies managing 390,000-plus apartment homes.
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