Legal Actions Regarding the CDC Dec and Related Rules Have Caused More Questions Than Answers
This week has brought new rulings against the CDC declaration and the new Consumer Finance Protection Bureau (CFPB) rules. There are a ton of headlines in all kinds of media that grab attention but are not telling the full story. Lets run through the activity and how it affects you (hint..it does not).
Monday- the CFPB and Federal Trade Commission (FTC) sent letters to the largest apartment operators in the US warning them that they will be held accountable for failing to provide notice to tenants in collection.
Tuesday-NARPM Sues CFPB Over Recent Eviction Rules
To remind you what this is about- the Consumer Finance Protection Bureau has imposed a rule that causes landlords to notify tenants of their rights to avoid eviction by filing the CDC declaration. So, beginning Monday of this week, all of our communications with delinquent tenants now instructs them that they have rights to be protected from eviction and directs them how to obtain and file the CDC declaration.
Our national association, the National Association of Residential Property Managers (NARPM) and others have filed a lawsuit and motion for a temporary restraining order against the CFPB in the U.S. District Court for the Middle District of Tennessee. The plaintiffs, including NARPM, are represented by the New Civil Liberties Alliance. The plaintiffs in this case are seeking a declaratory judgment setting aside and invalidating the CFPB rule and an emergency temporary restraining order preventing CFPB from enforcing its rule pending further action in the case. More information about the case is available here.
Keep in mind that this District Court does not make laws in Indiana. It is a first step in a long legal process of fighting these rules.
Wednesday- Federal Judge Lifts Nationwide Eviction Ban
Federal Judge Dabney L. Friedrich serves in the United States District Court for the District of Columbia. According to our attorney Kathryn Ransburg "what is interesting is the DC Court has national jurisdiction for reviewing unlawful federal rules." Judge Fredrich ruled that the CDC eviction ban is unlawful in her 20 page ruling. Friedrich said, “It is the role of the political branches, and not the courts, to assess the merits of policy measures designed to combat the spread of disease, even during a global pandemic. The question for the Court is a narrow one: Does the Public Health Service Act grant the CDC the legal authority to impose a nationwide eviction moratorium? It does not.”
Wednesday into Thursday- Department of Justice Requests And Receives A Stay on the Ruling
Judge Fredrich agreed to temporarily stay her decision pending appeal. An appeal of her ruling is expected to be filed in the Appeals Court at any minute. It seems likely Judge Fredrich will extend her stay of the ruling until the Appeals Court review or the CDC order is allowed to expire (currently June 30). Expiration of the CDC Order is not a given.
Here is an interpretation of all of this activity from our attorney Kathryn Ransburg. "The only thing that is certain is that this is your quintessential setup for a Supreme Court hearing since you have District Courts and likely Appeals Courts that are in disagreement. However, if the CDC Order is allowed to expire July 1, it will be moot. Even if they take the case(s) up on appeal, SCOTUS won't convene again until October by which time the issue may have already been settled."
So, don't let all the headlines fool you. Nothing has changed in Indiana or anywhere else. We still have to honor the CDC declaration and follow the CFPB rules. Our best weapon continues to be rental assistance and we are processing quite a few applications (over 65 currently).
In the meantime, we are committed to find solutions when there are non-paying tenants. We know that is what you hired us for.
Stay Safe! WILMOTH Team
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