Biden asks Congress to extend federal eviction moratorium

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The Biden administration will not move to extend a federal moratorium on evictions of renters who have defaulted on their rent payments during the COVID-19 pandemic, but it is asking Congress to authorize such an extension.

In a statement to Press Secretary Jen Psaki, the administration said President Biden would have strongly supported a move to further extend the current moratorium, set to expire on Saturday, but that option is no longer legally viable following the latest Supreme Court ruling.

Hundreds of thousands of renters may miss May 2020 rent payments as the coronavirus crisis enters its third month in the US for smaller landlords, and that means facing their own financial crunch. Jason Bellini reports from the Wall Street Journal. Photo: Fadela Hussain

State and local governments have struggled to distribute $47 billion in federal funds intended to help renters who cannot pay rent due to the downturn caused by the pandemic, leaving many people at risk of being forced out of their homes when the moratorium ends.

The Treasury said in a report last week that only $3 billion in aid authorized by Congress in December and March had been delivered to landlords and renters through June 30. A Census Bureau survey showed that about 8.2 million adults were behind on their rent or mortgage payments as of July 5 and had low confidence in their ability to pay on time next month.

Ms. Psaki said the moratorium will end at a time when renters have become increasingly vulnerable as the delta-variety virus continues to spread in many parts of the country, but said congressional action is the only way forward.

It is unlikely that Congress will be able to act before the CDC moratorium expires this weekend. A spokesman for Senate Majority Leader Chuck Schumer (D., New York) did not immediately respond to a request for comment. A spokeswoman for House Speaker Nancy Pelosi (California) had no immediate comment.

Salvation Army Commissioner Kenneth Hodder said the number of people at risk of eviction has risen dramatically during the pandemic. He noted that in the first six months of 2021, the Salvation Army distributed approximately $98 million in housing and utilities assistance, nearly exceeding the $90 million it distributed for the entire year of 2020.

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“There is no doubt that lifting the eviction moratorium will have an enormous impact on the people we serve,” he said. The bulk of the organization’s aid comes through private donations.

Meanwhile, many landlords were pressured because they could not collect the rent but were kept in trouble for taxes, maintenance and other bills.

Biden has also asked federal agencies, including the Department of Housing and Urban Development, to extend eviction moratoriums through the end of September, which will provide ongoing protection for families living on federally insured single-family properties, according to a White House official. It was not immediately clear how many tenants would be covered by these relatively narrow deferrals.

Biden has also asked federal agencies and departments to urge federally funded rental home owners and operators to seek rent assistance before moving into an eviction.

Problems with distributing rental assistance funds — which can be used to cover back rent, future rent, and utilities — often stem from bureaucratic bottlenecks. Some states have trouble keeping up with requests for help, while many renters are being disqualified for failing to properly complete their requests, landlords, tenants and local officials say. A major sticking point: Verify the applicant’s income either through last year’s tax return or two-month paycheck documents.

Eviction stop route

Write to Andrew Ackerman at [email protected]

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