2021 Landlord-Tenant Disputes: Federal and State Restrictions, Rent Abatement, Mortgage Relief, Eviction Moratoriums

Description

In addition to the CARES ACT, the Consolidated Appropriates Act of 2020, and separate federal and state orders, there remain provisions and programs that will immediately impact real estate owners, developers, and managers. The CARES Act and several states have offered income assistance by increasing unemployment benefits and providing a direct cash payment to most Americans. Counsel will need to guide clients and businesses on the requirements attached to CARES and state funding and the impact of government relief on rent collection.

Counsel must also know how these conflicting laws and regulations may affect borrowers with certain federally-backed mortgage loans. Property owners of both single and multifamily properties have the right to request forbearance on their loan due to financial hardship from the COVID-19 emergency. However, limitations on that right do apply. Borrowers must be aware of the limits and requirements for the forbearance period.

Counsel should advise landlords of property with federally-backed mortgages that the CARES Act and other federal and state orders grant a moratorium on eviction of tenants while the landlord is in forbearance. In the evolving financial and legal climate, counsel must ascertain and advise clients and businesses of other restrictions on legal action by landlords, including limits on evictions for properties covered under the Violence Against Women Act of 1994 or specific rural housing voucher programs.

Listen as our expert panel provides details on navigating the impact of the CARES Act on the real estate industry and addresses the practical concerns of property owners, landlords, and tenants in this current environment.