Subject: Special Edition- Supreme Court Rules on CDC Eviction Moratorium

WILMOTH Updates
Supreme Court Rules On The CDC Eviction Moratorium

We wanted to get this news out to you timely and provide some analysis for your reference. 

The following includes information from the National Association of Residential Property Managers Advocacy group. 

Yesterday, the United States Supreme Court refused to lift a stay on the CDC Eviction Moratorium. The vote was 5-4, with Justices Alito, Barrett, Gorsuch, and Thomas voted to lift the stay. Chief Justice Roberts, and Justices Breyer, Kagan, Kavanaugh, and Sotomayor voted to keep the stay in place.

Justice Kavanaugh agreed that the CDC exceeded its authority but voted against the stay in order to allow for distribution of rental assistance before the moratorium expires at the end of July. He based his decision on an opinion with regard to balance of equities from Justice Scalia in a 1991 case (Barnes v. E-Systems Inc. Group Hospital Medical & Surgical Insurance Plan). 

Justice Kavanaugh added that, "In my view, clear and specific congressional authorization (via new legislation) would be necessary for the CDC to extend the moratorium past July 31."

A few key takeways:
  • While the moratorium will not end immediately, the moratorium will still end on July 31, 2021. Yesterday's decision does nothing to change that date. In fact, yesterday's decision confirms and solidifies that date.
  • A majority of the Court agreed that CDC exceeded its authority, a major victory for housing providers, who have argued this very point in multiple court cases. That included the four Justices who voted to lift the stay, plus Justice Kavanaugh, who voted not to lift the stay, but made it clear that he believes the CDC exceeded its authority. His reasoning for allowing it to expire on July 31 rather than immediately was to allow time for distribution of rental assistance before the moratorium ends. 
  • This ruling effectively puts to rest the question of CDC's authority and makes clear that they cannot extend the moratorium past July 31.
We continue to pursue and cooperate with all tenants who are trying to participate in rental assistance programs.  We will also be gearing up to return to business as usual on August 1 where it pertains to your tenants who are not paying rent or refusing to vacate upon being provided proper notice. 

Stay Safe!

WILMOTH Team
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