Tales From The Trump Depression, Con't

The moratorium on federal housing evictions expires today, and millions of Americans will be getting 30-day notices to pay up the full amount on rent due or face eviction in August.

The ban on evictions at federally backed properties that Congress passed in March as part of the CARES Act has played a significant role in shielding the nation’s renters from the risk of losing their homes during the pandemic, a ProPublica analysis of eviction cases filed before and during the pandemic shows.

In the months before the passage of the CARES Act, evictions at federally backed apartment buildings made up more than a third of the eviction cases filed in cities like Atlanta and Houston every month, according to ProPublica estimates. In those two cities alone, that amounted to more than 7,700 households a month.

In the months since the law went into effect, eviction filings at those properties have dropped to less than 200 a month on average, making up about 5% of eviction filings in May and June.

The reach of the federal moratorium varied widely by city. While over 40% of evictions in metro Atlanta before the pandemic were at federally backed apartments, that number was just over 20% in St. Louis and around 10% in Milwaukee.

At the same time, ProPublica found eviction filings were also down significantly, if less dramatically, at apartment complexes not covered by the ban. That suggests that other factors — including expanded unemployment benefits and rental assistance programs, an anemic rental market, and state and local court closures and eviction moratoriums — also played a crucial role in reducing the level of eviction cases filed against tenants during the coronavirus crisis thus far.

“The moratorium was just one component,” said Paula Cino, vice president of construction, development and land use policy at the National Multifamily Housing Council, a group that represents apartment owners. “The financial support of unemployment insurance, stimulus checks and other relief, we think that that was really a lifeline and it was successful in helping many Americans meet their housing needs.”

That financial support has allowed most tenants to make the rent each month, Cino said, pointing to survey data her group collects that shows only a small percentage drop in people able to make rent payments in July compared with a year earlier.

But both expanded unemployment payments and the federal eviction ban are set to wind down at the end of the month, and eviction filings have started to tick up in recent weeks as courts in many jurisdictions are either scheduled to or have already reopened.

That sets the stage for a potential crisis for renters and landlords alike if lawmakers don’t extend measures to support renters as Congress returned to session this week, housing advocates say.

“The next three weeks are going to be critically important,” said Diane Yentel, president and CEO of the National Low Income Housing Coalition, a tenant advocacy group. “There will be a bill at the end of it, one way or another, and the scope and extent of it will determine if a tsunami of evictions will happen.”

Without another CARES Act, there will be a massive housing crisis at the end of the month and heading into September. Millions will be evicted into a deadly pandemic and economic depression, and the effects on both will be exponential and brutal.

By Labor Day we will have an unavoidable crisis, and the GOP took millions hostage by sitting on the HEROES Act that House Democrats passed ten weeks ago until the current CARES Act expired. Even if a bill was passed now, it would still take weeks to get things moving again.

It's going to get bad even with a bill, it's too late now.

Should the Senate adjourn for August recess without passing another bill, it's going to be devastating.