Biden seeks to extend ban on evictions and foreclosures

Biden seeks to extend ban on evictions and foreclosures

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One of several executive actions that Biden plans to take on Wednesday is a signal from the new government that immediate action is needed to stabilize housing for the approximately 25 million tenants and landlords who are at risk of losing their homes.

“President-elect Biden is taking historic steps on the first day to advance his agenda – including signing 15 executive actions and asking the agencies to take action in two additional areas,” said Jen Psaki, the White House press secretary.

The action aims to extend the federal moratorium on eviction by two months for failure to pay rent from the Centers for Disease Control and Prevention. The CDC order came into effect in September and the latest stimulus project extended protection until January 31.

President-elect Biden will also ask the Department of Veterans Affairs, Department of Agriculture and the Department of Housing and Urban Development to extend foreclosure moratoria on federally supported mortgages until March 31. He will ask these agencies to accept federal mortgage-backed mortgage indulgence applications up to that time as well.

On Tuesday, the Federal Housing Finance Agency (FHFA) extended its foreclosure and eviction moratoriums until the end of February. But the president-elect will ask for an extension of that period. Biden will also ask companies to continue to accept leniency applications for all loans guaranteed by Fannie Mae and Freddie Mac.
It is estimated that 14 million adults living in rental housing were behind in rent in December, according to the Center on Budget and Policy Priorities. That is 1 in 5 renters. It is estimated that 11.8 million adults are behind on their mortgages.

These deficiencies disproportionately affect color families. While 12% of White renters said they were unable to pay the rent, 24% of Latinos and 28% of Black renters said they were left behind.

While Biden’s executive action provides some immediate protections, government officials say banning evictions and foreclosures are not enough.

That is why the president-elect is also asking Congress to approve a Covid relief bill that would provide $ 35 billion in rent, utilities and aid to the homeless. That would be in addition to the $ 25 billion in rent reduction included in the second stimulus approved in December.
Rent reduction is critical because the ban on eviction does not cancel the rent. It will cost $ 76.1 billion in twelve months just to help extremely low-income families made up of tenants affected by this pandemic, according to an estimate by the National Low Income Housing Coalition. Meanwhile, smallholders are being squeezed.

Distressed renters were protected by a patchwork of federal, state and local eviction moratoriums, many of which expired during the summer. The first major stimulus package offered restricted eviction protection for tenants whose owners had a federally supported mortgage and for those living in federally assisted housing.

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In September, the Centers for Disease Control implemented an eviction moratorium that protected all eligible tenants from being evicted for non-payment of rent. The emergency order temporarily prohibits the occurrence of new and previously registered removals in an effort to prevent the transmission of the coronavirus.
But it is up to the tenant to invoke protection. And despite the ban, evictions are still taking place.

An eviction moratorium determined by the federal government will be the most needed relief for those on the front lines to help struggling tenants.

“If all we can achieve is an extension of the CDC order, we will accept it,” said Dana Karni, attorney manager of the Lone Star Legal Aid, Texas Eviction Lawyer Project.

But she added that many tenants are still being evicted. In Harris County, Texas, she said she is the minority of litigious tenants who have used CDC protection. The CDC’s request does not protect against the landlord not renewing a lease when it expires.

“In other words, things look terribly bleak in Houston,” said Karni.

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