Real Estate
NoVA Landlord Group Grateful CDC Eviction Moratorium Struck Down
U.S. Supreme Court struck down the CDC's eviction moratorium on Thursday, placing an estimated 3.5 million people at risk of being evicted.
VIRGINIA —A group representing Northern Virginia apartment owners applauded last Thursday's decision by the U.S. Supreme Court to lift the eviction moratorium during the coronavirus pandemic.
“In light of the Supreme Court’s ruling striking down the [Centers for Disease Control]’s eviction moratorium, we know concerns are running high about what local impact this may have," Patrick Algyer, executive director of the Northern Virginia Apartment Association (NVAA), said in a statement released Monday. "While landlords are grateful to have their contractual and constitutional rights restored, they never look forward to having to file for, or go through with, an eviction."
By issuing it unsigned opinion, the court's conservative majority ended the moratorium reimposed by the CDC on Aug. 3 and placed an estimated 3.5 million people in the position of being evicted within the next two months.
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See more: Supreme Court allows evictions to resume during pandemic
The Biden administration had argued that the CDC had the legal authority to impose the moratorium during the pandemic, but the majority of the court disagreed.
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“If a federally imposed eviction moratorium is to continue, Congress must specifically authorize it,” the court wrote.
The court's three liberal justices pointed to the surge in COVID-19 cases attributed to the new Delta variant as justification enough to keep the moratorium in place.
“The public interest strongly favors respecting the CDC’s judgment at this moment, when over 90 percent of counties are experiencing high transmission rates,” said Justice Stephen Breyer, writing for the three dissenting members of the court.
In his statement on the court's decision, Algyer said NVAA's members were sympathetic with those facing a possible evictions.
"On a purely human level, no one wants to remove someone from their home, especially during such difficult times," he said. "Additionally, an eviction frequently results in a landlord writing off a large amount of back rent as uncollectible, plus it triggers other costs including legal/court fees, and expenditures around advertising and preparing to fill a vacant apartment. "
While the CDC's eviction moratorium has been lifted, Virginia's statewide eviction moratorium is still in effect through the end of September, according to Algyer.
"Landlords prefer to work through the state’s Rental Relief Program as opposed to initiating an eviction," he said. "The program has been essential in helping tenants cover back rent owed, however, landlords are legally responsible for applying on behalf of their tenant and it is a cumbersome and protracted process that could be easier to navigate."
About 40 percent of NVAA's members are mom and pop shops that own about a third of the properties that are rented to low/moderate-income tenants, according to Algyer. This group is particularly negatively impacted when rents go unpaid for long periods of time.
"Many of these smaller landlords have been forced between a rock and a hard place, with little recourse when a tenant doesn’t pay rent — and in some cases have run into issues where tenants don’t comply with the landlord’s mandatory application for rental assistance, further complicating the process," he said. "Meanwhile, landlords’ expenses such as mortgages, taxes, utilities and repair bills have not abated.”
According to NVAA data, vacancy rates across Northern Virginia have stabilized, falling to the 4-6 percent range, with high rises posting slightly higher numbers. This is a significant drop from the highs of 15-25 percent reported early in the year. Prior to the pandemic, vacancy rates hovered around 2-3 percent.
In addition, the amount owned by delinquent tenants has dropped to approximately $2,000 on average compared to $5,000-$10,000 at the beginning of the year. Algyer credited that to the state's rent relief program.
The Associated Press contributed to the reporting of this story.
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