Biden Asks Congress to Extend Federal Eviction Moratorium

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Biden Asks Congress to Extend Federal Eviction Moratorium

DeWitt GibsonPro Member
Investor · Phoenix Arizona, USA · Member since 2018 · 176 posts · 105 votes

Hello Bigger Pockets: 

I just read this article in the Wall Street Journal online and wondering what the thoughts are out there about this subject: 

Biden Asks Congress to Extend Federal Eviction Moratorium - WSJ

"The Biden administration won’t move to extend a federal moratorium on the evictions of tenants who fell behind on rent in the Covid-19 pandemic in the wake of a court ruling, but it is asking Congress to authorize such an extension.

President Biden would have “strongly supported” a move to further extend the Centers for Disease Control and Prevention’s moratorium, scheduled to expire on Saturday, but that option is no longer legally viable after a recent Supreme Court ruling, the administration said in a statement by press secretary Jen Psaki.

State and local governments have struggled to distribute $47 billion in federal money aimed at helping tenants who can’t pay rent because of the pandemic-triggered downturn, leaving many people at risk of being forced out of their homes when the moratorium expires.

Just $3 billion of the aid authorized by Congress in December and March had been delivered to landlords and tenants as of June 30, the Treasury Department said in a report last week. About 8.2 million adults were behind on their rent or mortgage as of July 5 and have low confidence they can pay on time next month, a Census Bureau survey showed."

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Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
5y

There are landlords who have shared stories on BP that have not gotten rent since January 2020. We are approaching two years of no rent, mortgage forbearance is ending and these people don't qualify for assistance. These landlords have no right to even have their story heard in court. How is this right in America?  

Here are my thoughts:

- The CDC argued in front of the Supreme Court that there was no need to end the eviction moratorium because it was ending soon and they would not be extending it. CDC flat out lied. They had every intent of extending it. Thankfully Justice Kavanaugh went on record saying he didn't believe the CDC had authority. That is the ONLY reason Biden is asking Congress instead of just having the CDC extend it.

- Biden called on federal departments to extend the moratorium on any federally backed loans or programs. That affects landlords with Fannie Mae or Freddie Mac backed mortgages, which is most every loan out there for small investors and home investors. This also includes VA loans, FHA loans, Section 8 recipients, etc. Even large multifamily loans are affected. The question is does congress need to authorize this or will the agencies just push the policy under their own authority?

- Biden cited one reason for the extension is due to people not being able to get vaccinated. Let's be real here, anyone not vaccinated is only in that situation because of their own choice. The shots are free, available everywhere and people in need can get rides to the sites. I am sorry but if you refuse the vaccine, you don't get the right to complain about it not being safe to work or that you shouldn't have to pay rent. 

- He says some cities have not recovered. What city doesn't have "help wanted" signs everywhere? I realize some states and cities have chosen to stay closed. They did a bad job distributing assistance. The problem is you are pushing a FEDERAL mandate out to protect a few mismanaged states. Those states can pass their own eviction moratorium. It really seems there is political intent here to hurt states that are in full recovery. Playing politics with people businesses and livelihood is wrong.

- There is tons of money flowing. The only people who have not gotten assistance fall in one of two categories:

1. They don't qualify. We have seen stories on BP about tenants who were given eviction orders before COVID even started. They have literally sat in the properties for over a year, while the landlord knows they won't qualify for assistance or ever get money from them. Why can't we all agree (Biden and his party) that this is wrong? Why not let the courts decide if people have hardship or not? That is called due process and it is constitutional right. 

2. They do qualify, but make no effort to get help. Some people just mentally shut down or don't care because they can't be evicted. This group of people is even worse than the first, because they can get help but just decide to screw the landlord. Threat of eviction is the only motivation to get them to take action. I have even suggested that states should give check writing authority to the courts for assistance. When they show up in court for eviction with a year unpaid rent, have the clerk of courts write checks to landlords based on a judges order. Let the people stay in the property with the understanding "going forward you must get assistance or get a job and pay rent, next time you will be evicted."

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  • Victor S.
    WorldWide · Member since 2016 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @DeWitt Gibson:

    As a follow on, Congress did not extend:

    https://apnews.com/article/joe... (AP) — A nationwide eviction moratorium is set to expire Saturday after President Joe Biden and Democrats in Congress worked furiously but ultimately failed to align on a long-shot strategy to prevent millions of Americans from being forced from their homes during a COVID-19 surge.

    this is why you can't take msm seriously. worked "furiously" two days before it was set to expire? they really care, don't they... 

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    • Joe SplitrockPro Member
      Moderator
      Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
      5y
      Originally posted by @Victor S.:
      Originally posted by @DeWitt Gibson:

      As a follow on, Congress did not extend:

      https://apnews.com/article/joe... (AP) — A nationwide eviction moratorium is set to expire Saturday after President Joe Biden and Democrats in Congress worked furiously but ultimately failed to align on a long-shot strategy to prevent millions of Americans from being forced from their homes during a COVID-19 surge.

      this is why you can't take msm seriously. worked "furiously" two days before it was set to expire? they really care, don't they... 

      Update: Worked "furiously" amounts to Nancy Pelosi requiring unanimous consent on extending the eviction moratorium. That means only one representative needs to object to block it. As expected, republicans objected. Then Nancy Pelosi says "it is republicans fault for blocking it" as if she ever expected that to pass unanimous consent. She should have put it up for vote, but she was either afraid the votes were not there or doesn't want it extended. Then Nancy Pelosi says "we tried and now President Biden needs to do something". Biden asks the CDC to do something and they say no, because the supreme court stated they don't have authority. Biden blames congress, blames republicans, blames states for not administering assistance and blames landlords for not seeking assistance. Congress goes on vacation and blames the republicans. Then a White House advisor makes the press circuits and says "The key message here is that no landlord should evict without seeking that rental assistance." LOL, like any landlord would not seek assistance if it was in their control... Blaming landlords is blaming the victim. How about we actually try to solve a problem.

      I have said it before, the solution is giving courts authority to dispense rent assistance funds. Let the judge award assistance and have the clerk of courts write checks to the landlord at the courthouse. The tenant has to prove hardship and only gets to stay in the property if they agree to pay going forward. That means they have a job or agree to seek monthly assistance until they get a job. Biden could write an executive order giving courts authority to dispense funds. The only wrinkle I see is state governors or state bureaucracies that refuse to give control to the courts. If we trust judges to give fines, why wouldn't we trust them to hand out assistance money?

      2Reply
  • Momi Rapozo
    Los Angeles, CA · Member since 2015 · 42 posts · 28 votes
    5y

    @Adam Martin what area are you in? You’re saying you can’t rent your houses to where the numbers make sense?

    0Reply
  • Momi Rapozo
    Los Angeles, CA · Member since 2015 · 42 posts · 28 votes
    5y

    @Theresa Harris yea or it could be due to slowness in processing the requests. Who knows?

    0Reply
  • Steve B.
    Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
    5y

    @Jim K.

    There are way more renters that vote than landlords, that is the main reason. Also the banks have a strong and well financed lobbying group and give massive campaign donations. Landlord lobbying groups are mostly inept.

    6Reply
  • Allen L.
    Rental Property Investor · Chicago and mainly invests in KS remotely · Member since 2018 · 360 posts · 314 votes
    5y

    There are ways to structure your lease to look at MTM to you but a "soft" full year lease to the tenant. I recently bought a SFH from a retiring landlord who had a lease like this. Have a termination clause that gives you the power to issue 30 days notice to vacate, but if the tenant tries to leave, they have to give up the security deposit. I don't like this type of contract, but if eviction moratorium continues, I'm sure many property managers will start getting creative.

    0Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    5y
    Originally posted by @Steve B.:

    @Jim K.

    There are way more renters that vote than landlords, that is the main reason. Also the banks have a strong and well financed lobbying group and give massive campaign donations. Landlord lobbying groups are mostly inept.yes.

     Yep. You want justice, buy yourself some elections. Don't piss and moan in the BP forums about some high-falutin' principles and human rights that were never nothing more than a con job sponsored by European moneymen to ditch the kings.

    1Reply
  • Steve B.
    Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
    5y

    @Jim K.

    Yes, we are definitely turning into an uncivilized, authoritarian, anti-constitution country in which the ends justify the means as long as you are “the good guys”

    3Reply
  • Corey Frank
    Gillette, WY · Member since 2017 · 149 posts · 68 votes
    5y

    @Kenny Dahill You sir, have my vote for whatever political spot you choose to run for!!!!

    0Reply
  • Adam Martin
    Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Momi Rapozo:

    @Adam Martin what area are you in? You’re saying you can’t rent your houses to where the numbers make sense?

    Sorry for the confusion, renting my properties where the numbers make sense is easy for existing houses and homes in the right price range should net 4-800 after piti but you still need to factor in capex.  Rents are up on my first house almost 600 in 6 years and I'm doing great, what I was referring to was since rents have gone up so much I couldn't afford to be a renter to many of my properties which seems weird.  

    0Reply
  • Momi Rapozo
    Los Angeles, CA · Member since 2015 · 42 posts · 28 votes
    5y

    Ohhhh gotcha! That makes sense. Rents are crazy. I'm new to investing so I didn't consider Capital Expenses. Thank you!

    0Reply
  • Jim S.
    Sterman, MI · Member since 2017 · 378 posts · 306 votes
    5y

    The moratorium is nothing more than giving the low class irresponsible people a free ride. They think they are "entitled" to it.

    2Reply
  • Chris Szepessy
    Catskill, NY · Member since 2018 · 636 posts · 668 votes
    5y

     With all the stimulus money and extra unemployment there is zero reason to have an eviction moratorium. You can't make double-triple the money and then cry that you can't pay your rent. It's a way to buy votes. Why do you think another "way more serious, way more lethal, Covid strain that infects EVERYBODY regardless of vaccination status" is now going around? More stimulus, more unemployment, etc. will be happening again shortly. 

    4Reply
  • Terrell Garren
    Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
    5y

    Grandstanding at it's best. Can you imagine the absolute lack of responsibility it takes to be evicted 3 times.

    2Reply
  • Gail K.
    Augusta, GA · Member since 2014 · 1k+ posts · 1k+ votes
    5y

    Who would rent to this woman?  Some landlord did not check past eviction histories.  Shame on them.

    2Reply
  • Greg M.
    Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    5y
    Originally posted by @Terrell Garren:

    Grandstanding at it's best. Can you imagine the absolute lack of responsibility it takes to be evicted 3 times.

    Um, where are their masks? Why are they not practicing social distancing? I'm sure there is an uproar about this on the MSM. 😬

    1Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    5y

    @Terrell Garren  and she is standing proud saying I have been evicted 3 times!   

    2Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y
    Originally posted by @Terrell Garren:

    Grandstanding at it's best. Can you imagine the absolute lack of responsibility it takes to be evicted 3 times.

     And they are relatively young.

    0Reply
  • DeWitt GibsonPro Member
    OP
    Investor · Phoenix Arizona, USA · Member since 2018 · 176 posts · 105 votes
    5y

    @DeWitt Gibson

    Yet another update:

    https://www.cnbc.com/amp/2021/08/03/cdc-will-extend-the-federal-eviction-moratorium-through-oct-3.html

    The Centers for Disease Control and Prevention (CDC) announced Tuesday it will extend the federal eviction moratorium through October 3, 2021 after the ban lapsed over the weekend.

    The announcement comes after pressure from House Democrats including House Speaker Nancy Pelosi, D-Calif., Rep. Maxine Waters, D-Calif., and Rep. Cori Bush, D-Mo. The White House previously said Biden did not have the authority extend the ban, given a June Supreme Court ruling that said only Congress can enact a such a ban. Congressional Democrats did not appear to have enough votes to do so, and the House is currently in recess

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