CDC's COVID Eviction Moratorium Order Comes Under Legal Fire by NAHB

CDC's COVID Eviction Moratorium Order Comes Under Legal Fire by NAHB

Residential News » Washington D.C. Edition | By WPJ Staff | October 26, 2020 8:13 AM ET

According to a written statement by the National Association of Home Builders -- in partnership with Pacific Legal Foundation -- the National Association of Home Builders (NAHB), along with Skyworks Ltd, Cedarwood Village LLC and Monarch Investment and Management Group, filed a complaint in the Northern District of Ohio challenging the U.S. Centers for Disease Control and Prevention's (CDC) authority regarding its eviction moratorium order.

The CDC issued a nationwide order that stops landlords from evicting U.S. tenants who are not paying rent through Dec. 31, 2020. The eviction moratorium began on Sept. 4, 2020, and the CDC said the measure was necessary to prevent the further spread of COVID-19.

The CDC's order provided no relief for landlords who must continue to pay bills, maintain the units and pay their employees all while receiving no rent. NAHB does not believe that Congress provided the CDC with authority to issue such a sweeping nationwide order.

"NAHB is concerned the CDC's rental eviction moratorium could result in unforeseen negative economic consequences without dedicated funding for rental assistance," said NAHB Chairman Chuck Fowke. "Absent rental income, these small mom and pop property owners must continue to pay their mortgage, property taxes, employees and cleaning/maintenance services. And without sufficient rental income, a number of properties would be pushed into foreclosure."

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