| Eviction Updates
By the time you are reading this on Saturday morning who knows how the world will have changed again. The last year and a half has not lacked for relevant breaking news!
In case you missed it, on Tuesday the CDC issued a new eviction moratorium through October 3, 2021. It is almost certain to face severe legal challenges over the next few weeks. For now though we are back to square one.
Here are the most frequently asked questions we are receiving from owners and answers to the best of our knowledge.
Can we still file for eviction against a tenant?
Yes, we can still file. The case will not be scheduled to be heard until after October 3 if a CDC declaration is presented to the landlord, manager, or the court.
What happens if my tenant previously filed the CDC Declaration and their hearing date was August 5?
Unfortunately, those cases are on hold under the new order until October 1 or later.
My tenant previously filed the CDC Declaration and their hearing was August 3. What happens?
Our attorney had been refiling possession cases with a CDC Declaration immediately upon each extension. This meant that a significant majority of cases with a CDC Declaration had been rescheduled for the first week of August (court dependent). We had half a dozen cases heard on Aug. 2 and 3 with CDC Declarations and possession was granted for all of them. The new order is clear and states "Any eviction that was completed before the issuance of this Order including from August 1 through August 3, 2021, is not subject to this Order, as it does not operate retroactively." We believe the word "completed" will be interpreted as issuance of the order of possession and not the actual move out.
What about properties covered under the Cares Act (federally insured mortgages)?
Those tenants will be covered under the CDC order. As it stands currently, if the CDC order is ruled illegal, these properties have to use a 30 day notice before an eviction filing can begin. It remains important if you know your defaulted tenant occupied property has a federally insured mortgage that you let us know. Our collection procedures must be different in those situations.
My tenant has filed the CDC Declaration but they are in noncompliance with the lease or the lease has expired. Can we pursue eviction?
What we are learning is that in some jurisdictions the Judges are hearing these cases...but not so much in Central Indiana. The CDC Order that came out in March actually states that the protections of the declaration are in place for non-renewal actions. Non-compliance gets more case by case. We can likely have a hearing in clear cases of a tenant causing rental property destruction.
What happens next?
The expectation is that the Supreme Court will reinforce their rulings of last month and strike down the CDC order as unlawful. Even the President admitted such late Tuesday. The strategy being used is with an eye on getting more rental assistance funds distributed prior to the Supreme Court acting.
One last interesting thought on rental assistance. All the programs we are involved with pay a maximum of three months rent. Over 80% of our tenants with protection under the CDC owe more than 3 months. In some cases 6-12 months of rent! In those cases of a severely delinquent tenant, accepting three months of rent and giving the tenant a pass to live in the home for at least 45 more days (and then a possible 2 month backlog for a filing) is the dilemma. If presented with such a situation it will be case by case and of course our owner will be consulted.
To Your Health!
WILMOTH Team
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