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Nationwide Eviction Moratorium By The End Of This Year: Announcement By Trump Administration


On Tuesday, the Trump administration has announced that it is implementing a four-month moratorium nationwide on residential evictions. The announcement was made after considering the public health law related to the prevention of the spread of illness.

Nationwide Eviction Moratorium by the end of this year: Announcement by Trump Administration


The latest measure in the country was the announcement of the moratorium. It is announced by the Centers for Disease Control and Prevention. The newest measure announced by the administration was aimed to handle mainly the economic fallout of the coronavirus pandemic. There was an agreement with Congress primarily on a far more reaching package that has the force of law.

The heath officials primarily relied on the 1944 Public Health Service Act for stopping the evictions. Since they relied on this law, it gave the administration board what it needed, and mainly it received broad quarantine powers. The administration is planning to run moratorium through Dec. 31. It will apply to individuals with an earning capacity of less than $99,000 a year. The administration has also announced that the moratorium will also be for people who are not able to make housing payments and rent.

On Tuesday, Brian Morgenstern, White House spokesman revealed to the reporters that,

“President Trump is committed to helping hard-working Americans stay in their homes and combating the spread of the coronavirus.”

The administration’s announcement has drawn thoroughly mixed reaction from housing experts. The moratorium announced should be appreciated because it will keep over tens of millions of Americans to stay back in their homes. But, meantime, there is a concern as well, and the announcement has just moved around the deadline.

It is potentially set up an eviction, but it has been postponed to next year. The reason behind this is, people will continue to accrue back payments, and that happens throughout the pause in evictions. More than that, there is no clarity on how the move will affect the landlords because landlords will be making their payments without any excuses.

Hence, even though tens of millions of Americans are happy for the announcement, there is clarity on this financial move. Whether it is going to affect landlords or what happens for people by next year should be clarified.

Diane Yentel, CEO and president of National Low Income Housing Coalition, quoted that,

“The very least the federal government ought to do is assure each of us that we won’t lose our homes in the middle of a global pandemic,”

Diane Yentel added

“But while an eviction moratorium is an essential step, it is a half-measure that extends a financial cliff for renters to fall off of when the moratorium expires, and back rent is owed.”

The president of the National Multifamily Housing Council, Doug Bibby, has quoted that his organization is under disappointment. All at once, the administration has enacted an eviction moratorium. But, there is no point in funding for unemployment and rental assistance. The National Multifamily Housing Council is a group advocate for the apartment industry.

Bibby also added that,

“An eviction moratorium will ultimately harm the very people it aims to help by making it impossible for housing providers, particularly small owners, to meet their financial obligations and continue to provide shelter to their residents.”

Even though the eviction moratorium is aimed to help people, it is harming them. It is making it difficult mainly for house providers or small owners to make their financial obligations. They are finding it hard to offer continued shelter to their residents.

The president and CEO of the National Apartment Association, Bob Pinnegar also said,

“Ourorganization and its members were ‘deeply concerned’ by the moratorium.”

He also added that,

“The lack of money for rental assistance risked creating a ‘cascade’ when apartment owners did not receive rental payments and then fell behind on maintaining their properties or paying property taxes or mortgages.”

Since apartment owners did not receive their rental payments, they finally fell behind primarily in tasks like maintaining the properties and even paying property taxes and mortgages. Hence there is no clarity in the eviction moratorium announcement made by the administration mostly on what happens to the landlords.

ON Tuesday, Treasury Secretary Steven Mnuchin responded to lawmakers on Capitol Hill that.

“The announcement on evictions would likely leave them ‘pleased.’ “

But meantime, he acknowledged that “It was not a substitute for congressional action. The White House and congressional Democrats have stalled in talks to approve another stimulus, allowing many relief programs to expire.”

So, Congressional Democrats and the White House have plans to approve and announce another stimulus. In the upcoming announcement, people can expect the expiry of many relief programs.

Treasury Secretary Steven Mnuchin also stated that,

“Our first choice is to have bipartisan legislation that allocates specific rental assistance to the people hardest hit.”

When he was asked regarding the Aspen Institute report, where they estimated that 30 to 40 million Americans are at risk of eviction, Mnuchin replied.

He responded that the estimate by the Aspen Institute report is “absurdly high.” He also argued that the executive orders announced recently and earlier have enhanced unemployment benefits. He also added that these benefits resulted in helping Americans pay their rent.

So, there was a counter-argument by Mnuchin, and his opinion is Aspen Institute quoted very high estimates. He has confidence in the effect of executive orders since it resulted in significant benefits, majorly on rent payments.

Mnuchin also stated that “I think this is nothing close.”

He was referring to the housing as well as the mortgage crisis country faced during 2007. The effects created by the pandemic and the eviction moratorium effects are not even close to the situation faced by Americans in 2007.

But many people raised concern on the moratorium. Bob Pinnegar, who is the CEO and president of the National Apartment Association, also quoted a problem on the moratorium. He said, “Our organization and its members were ‘deeply concerned’ by the moratorium,” soon after the moratorium announcement.

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