CDC Temporary Eviction Halt
Fact Sheet

Summary

On September 4, 2020 the Centers for Disease Control and Prevention (“CDC”) issued an Order temporarily halting all residential evictions due to nonpayment of rent through December 31, 2020.

On December 27, 2020, the President signed the Consolidated Appropriations Act, 2021 (“CAA”) into law, thereby extending the CDC eviction moratorium until January 31, 2021.

Contents of Order

The CDC has issued a temporary Order prohibiting all residential property landlords from pursuing any eviction proceedings against a “Covered Person” through December 31, 2020 when the eviction arises as a result of a failure to pay rent. Under the Order, the term “Covered Person” is defined as every adult tenant or other resident of a residential property who provides a written declaration under the penalty of perjury that:

• the individual has used his or her best efforts to obtain all available government assistance for rent or housing;

• the individual does not expect to earn more than $99,000 in 2020 ($198,000 for couples filing jointly), or received
a CARES Act stimulus check;

• the person is unable to pay full rent due to substantial loss of household income, loss of hours or pay, a lay-off or
extraordinary out-of-pocket medical expenses;

• the individual is using best efforts to pay at least as much of the rent as he or she can, taking into account the
individual’s circumstances and non-discretionary expenses; and

• the eviction would likely render the individual homeless or force the individual to move into and live in close
quarters in a new congregate or shared living setting because the individual has no other available housing options.

While the Order purports to prohibit eviction actions, the Order does not relieve tenants of their obligation to pay rent (i.e., any unpaid rent is still due and payable and, presumably, grounds for eviction after December 31, 2020) and otherwise comply with the terms of their lease. Additionally, the Order does not preclude an eviction which is based on something other than the failure to pay rent (or late fees or interest associated with rent), such as due to a tenant breaking another term of their lease, such as by engaging in criminal behavior on the property.

Penalty for Violations

The Order purports to impose substantial penalties for violation of the Order. Under the Order, an individual landlord who violates the Order could face a fine of up to $100,000 and/or a year in jail. If the violation results in a death—i.e., if a landlord evicts a tenant who later catches and dies of Coronavirus–the potential maximum fine increases to $250,000. In the case of a landlord which is an organization (i.e., a corporation), the fine maximums are doubled.

Authority of CDC

It is unknown at this time whether the CDC has the authority to issue the Order or whether the Order, if challenged in court, will be upheld. The CDC has issued the Order under the broad powers granted to it by federal law during a public health emergency, and has attempted to justify the Order on the basis that evicting non-paying tenants may result in the tenants moving in with friends and family, thus potentially spreading the Coronavirus. Likely, the Order will be challenged in court; however, pending such challenges, it is impossible to opine whether the Order will be found to be valid.
The Jiles Firm, P.A. is a business law firm located in Conway, Arkansas practicing in business and commercial law, labor and employment law, and business litigation. During the COVID-19 crisis, The Jiles Firm, P.A., attorneys are offering free telephone consultations with small businesses and non-profit organizations concerning legal issues caused by COVID-19.