What is the CARES Act? 

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides immediate eviction relief for certain residential tenants but does not address commercial tenants’ relief. 

Section 4024 of the CARES Act establishes a temporary moratorium on the filing of residential evictions for tenants residing in certain properties that are part of government programs or financed by Federally backed mortgage loans (Temporary Eviction Moratorium). 

How Does the CARES Act Impact Property Managers? 

Section 4024 of the CARES Act states that landlords of “covered dwellings” are prohibited from: 

  1. Filing legal action to recover possession of the covered dwelling from the tenant for nonpayment of rent. 
  1. Charge fees, penalties, or other charges to the tenant related to non-payment of rent. 

Covered dwellings include those dwellings on or in “covered properties,” which in turn are defined by the CARES Act as properties that: 

  1. Participate in a “covered housing program” as defined by the Violence Against Women Act. 
  1. Participate in the “rural housing voucher program under section 542 of the Housing Act of 1949”. 
  1. Have a “Federally backed mortgage loan” or a “Federally backed multifamily mortgage loan.” 

The Temporary Eviction Moratorium began on March 27, 2020 and ended on July 25, 2020.  During the Moratorium Period, the property manager of a covered dwelling was prohibited from issuing a notice to vacate. Now that the Moratorium Period is over, property managers who manage “covered” properties must send tenants a 30-day notice before commencing eviction proceedings. This notice must be served prior to initiating legal action for failure to pay rent. 

Our 30-Day Notices 

To best serve our clients, we have added the notice requirement to our list of services, so you can easily order the letter through our platform, generate, and deliver in the manner recommended by your legal counsel. Utilizing our platform to serve the 30-day notice will provide transparency to ensure compliance with the CARES Act, tracking of delivery, and access to provide copies of the served notices to counsel, which may need to be attached to the legal filing upon submission to the court. 

Contact your Account Manager or a member of our sales team for more information on our 30-day notices. 

Source: 

https://www.hud.gov/sites/dfiles/CPD/documents/CDBG_Eviction_Moratorium_QAs_2020_05_18_FINAL.pdf