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Federal Court Rules CDC’s COVID-19 Eviction Moratorium Is Unlawful

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Wonder where this goes? Are all bets off, and landlords go full throttle with evictions.

Also wonder what happens with Murphy, he extended it to January, not sure where he gets the authority to do so. I half expected for Biden/CDC to extend it at the end of the month, when looking at current unemployment numbers.

Will this decision also apply to mortgages?

......"A federal court on Friday ruled that the U.S. Centers for Disease Control and Prevention (CDC) overstepped its authority by halting evictions during the COVID-19 pandemic.

The Cincinnati-based U.S. Sixth Circuit Court of Appeals unanimously agreed (pdf) with a lower court ruling that said the CDC engaged in federal overreach with the eviction moratorium, which the agency has consistently extended for months. Several weeks ago, the CDC announced it would allow the policy, which was passed into law by Congress, to expire at the end of July.

“It is not our job as judges to make legislative rules that favor one side or another,” the judges wrote. “But nor should it be the job of bureaucrats embedded in the executive branch. While landlords and tenants likely disagree on much, there is one thing both deserve: for their problems to be resolved by their elected representatives.”

“Landlords have been losing over $13 billion every month under the moratorium, and the total effect of the CDC’s overreach may reach up to $200 billion if it remains in effect for a year,” said the organization in an emergency petition to the Supreme Court.

https://www.theepochtimes.com/mkt_breakingnews/federal-court-rules-cdcs-covid-19-eviction-moratorium-is-unlawful_3915614.html?utm_source=newsnoe&utm_medium=email2&utm_campaign=breaking-2021-07-23-2&mktids=3491ef1f85d8d671fc1255444d21c3b3&est=YrucM9AbEfJ5o0S%2Feq4tcJSWy1t%2BFeHvWESrKCurm0fsVQV%2FMRonmnwDzH7aMdk%3D

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57 minutes ago, Sniper said:

The Cincinnati-based U.S. Sixth Circuit Court of Appeals unanimously agreed (pdf) with a lower court ruling that said the CDC engaged in federal overreach with the eviction moratorium, which the agency has consistently extended for months. Several weeks ago, the CDC announced it would allow the policy, which was passed into law by Congress, to expire at the end of July.

“It is not our job as judges to make legislative rules that favor one side or another,” the judges wrote. “But nor should it be the job of bureaucrats embedded in the executive branch.

I’m confused.  I’d congress passed the law giving the CDC this authority how is it the executive branch overstepping?

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46 minutes ago, voyager9 said:

I’m confused.  I’d congress passed the law giving the CDC this authority how is it the executive branch overstepping?

If I understood it correctly, Congress gave the initial approval and it was set to expire a while ago. Then the CDC stepped in and extended it a few times, which was where the overstepping took place. I don't think they had the OK from congress for the extensions.

Actually, I just looked. The original Cares Act moratorium was for 120 days, starting March 27, 2020.

Ahh, just found this:

The CARES Act eviction moratorium began on March 27, 2020,and ended on July 24, 2020. Covered tenants could not be forced to vacate, and landlords could not file notices to vacate,until 30 days after the expiration of the moratorium(August 23, 2020).

The CDC eviction moratorium took effect September 4, 2020,and was initially slated to extend through December 31, 2020. However, it was extended legislatively through January 31, 2021, and extended again by CDC through March 31, 2021. On March 29, 2021, CDC further extended the moratorium until June 30, 2021. The CDC moratorium does not address notices to vacate

https://crsreports.congress.gov/product/pdf/IN/IN11516

 

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7 hours ago, voyager9 said:

I’m confused.  I’d congress passed the law giving the CDC this authority how is it the executive branch overstepping?

how does congress even have the lawful authority to tell you as a landlord that you must let someone live in your property rent free?

1 hour ago, Bklynracer said:

So if that stands true, somebody owes sombody a lot of money, since the tenant did nothing wrong and just followed the rules, can the CDC be sued?

the tenant that didn't pay his rent for a year? all while receiving "enhanced" unemployment that nearly equals his paycheck? or sometimes exceeds it? that tenant did nothing wrong? other than squatting when he shoulda been paying his rent, he didn't do anything wrong i guess.

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3 hours ago, Bklynracer said:

I meant by following the rules put in place.

The question is, were those "rules" specified by the CDC actually legal? Where do they have the legal right to get in between a contract between a tenant and landlord? Just because the CDC "said so"?

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Just saw this posted, the CDC also got smacked down on their cruise ship restriction ruling in Florida. A federal court said they didn't have the authority to shut down the cruise industry.

With these two rulings, it gives a lot of ammo to go after the administration for damages.

https://www.cnbc.com/2021/07/23/florida-asks-supreme-court-to-curb-cdc-restrictions-on-cruises.html

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ETHICAL. c'mon man, you know how people are. if they see an opportunity to not pay and get away with it, they're gonna take it. they aren't thinking of what happens when that big past due bill has to be paid. they're just looking at the extra spending cash right now.

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15 minutes ago, 1LtCAP said:

they aren't thinking of what happens when that big past due bill has to be paid. they're just looking at the extra spending cash right now.

Which is why so many are still sitting on the couch and not working. When you don't pay your rent or mortgage, it leaves a lot of cash available for Door Dash.

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This should be a good battle, who's going to win?

Progressive Democrats Blast 'Reckless' Biden Plan To Allow Evictions To Resume

Rep. Alexandria Ocasio-Cortez was among several critics on Friday who warned that the Biden administration's plan to allow the Centers for Disease Control and Prevention's eviction moratorium to expire on July 31 would have devastating consequences for millions of renters as well as threatening public health as Covid-19 cases surge.

President Joe Biden extended the moratorium by one month in June but has shown no signs that he plans to do the same this month. 

According to analysis by the Center on Budget and Policy Priorities released this week, 11.4 million renters—or one in seven—are behind on rent payments. Advocates say about six million are at risk of promptly losing their homes if the eviction moratorium is not extended at the end of July.

https://www.zerohedge.com/political/progressive-democrats-slam-reckless-biden-plan-allow-evictions-resume

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And now there's the report of Biden extending the foreclosure moratorium. How can he legally do that, when it's shown the the CDC doesn't have the authority?

......"Though the Biden administration has not signaled that it plans to extend aid for renters, the White House on Friday announced it will allow homeowners with Fannie Mae and Freddie Mac-backed mortgages to delay their payments until September, a measure that will help 1.8 million people in forebearance. 

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On 7/25/2021 at 12:20 PM, revenger said:

For the financial experts,   What happens to the economy when this is finally lifted for good?

I believe the technical term is Shit Show.

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On 7/23/2021 at 11:42 PM, Sniper said:

“Landlords have been losing over $13 billion every month under the moratorium, and the total effect of the CDC’s overreach may reach up to $200 billion if it remains in effect for a year,”

That's insane.

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On 7/24/2021 at 7:01 AM, Bklynracer said:

So if that stands true, somebody owes sombody a lot of money, since the tenant did nothing wrong and just followed the rules, can the CDC be sued?

The tenants already owed the money to their landlords.  The moratorium was on collection action/eviction.  The rents due still accumulated as unpaid.  This is the real crux of the problem.  Many tenants who continued to work and could have been paying their rent didn't pay because they "didn't have to".  Without the moratorium, tenants and landlords could have worked out deals for those affected by the pandemic and continued to collect from those who were not.  Remember, as well, that many of these people are not working because the earn MORE on unemployment.  

This process has completely screwed many landlords who are often actually small businesses who own a half dozen single family homes as rental properties.  Not every landlord collects millions from a highrise apartment building.

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On 7/25/2021 at 12:20 PM, revenger said:

For the financial experts,   What happens to the economy when this is finally lifted for good?

That's the $100,000 question. I've been trying to get a handle on that from multiple financial sources, but there's no consensus.

First, the tenants will never pay back past due rent when evicted, they'll just walk (I don't know where they go).

The landlords who haven't been paying their mortgages, because they weren't collecting rent, will now have to come up with their past due amounts? Will they be able to work out a deal with their banks? Who knows... Will they finally punt, and sell the property at these high prices? Possibly.

Homeowners who haven't paid and are being foreclosed have only a few options, hopefully they saved all their Biden Bucks. Either they pay the back due payments, work out a deal where the unpaid amount gets added to the rear of their loans. Or they sell... but there again, where do they go??

It will definitely been interesting to watch...

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3 hours ago, Sniper said:

For the financial experts,   What happens to the economy when this is finally lifted for good?

First . . . I think that California wants to pay off everyone's back rent!

After that terrible idea, landlords will likely be able to rework mortgages because the banks do NOT want the properties.  The same goes for homeowners who have fallen behind.  Yes, some MAY bail at high prices but for rentals, it's difficult to find investors because they know they are buying at the top of the market.  For homeowners, they are going to need to live somewhere.  If you sell at the top, you're buying at the top.  Many may move to rentals to wait out the bubble but this will drive rents up.

Banks do not want to be in the RE business.  It almost always results in a loss for them.  

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6 hours ago, EdF said:

The tenants already owed the money to their landlords.  The moratorium was on collection action/eviction.  The rents due still accumulated as unpaid.  This is the real crux of the problem.  Many tenants who continued to work and could have been paying their rent didn't pay because they "didn't have to".  Without the moratorium, tenants and landlords could have worked out deals for those affected by the pandemic and continued to collect from those who were not.  Remember, as well, that many of these people are not working because the earn MORE on unemployment.  

This process has completely screwed many landlords who are often actually small businesses who own a half dozen single family homes as rental properties.  Not every landlord collects millions from a highrise apartment building.

even those not working, but making more on unemployment should've kept paying. i coulda played that game at my shop and had a significant amount of extra money in my account. but i didn't want to have back due rent. it's too hard to catch up.

 the vast majority of those who are now behind are behind for no other reason than themselves.

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1 minute ago, 1LtCAP said:

even those not working, but making more on unemployment should've kept paying

I'm sure that many did . . . Just like I'm sure that many did not . . . 

You're a businessman and your income is based on your location along with other factors.  It costs you a lot more to move that it does some guy in a two bedroom apartment who isn't expecting to live there for the rest of his life anyway.  If he can keep extra money in his pocket today, he will and he will worry about tomorrow when it comes.

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1 hour ago, EdF said:

Banks do not want to be in the RE business.  It

That's why Blackstone has met with Biden. They're more than happy to take these houses off everyone's hands, and turn them into rentals.

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Looks like Biden knows the CDC can't extend it, so now he wants Nancy to..  at the 11th hour...

Biden Urges Congress To Extend Eviction Moratorium In 11th Hour Plea

President Biden has asked Congress to extend an eviction moratorium set to expire on Saturday, saying in a statement that while he would have strongly supported a decision by the CDC to do so, "the Supreme Court has made clear that this option is no longer available."

So - if Biden gets his way and Congress whips out some 11th hour legislation, renters get stimmies and don't have to pay their landlords, while landlords get nothing and are dying on the vine.

We can't imagine this 'plea' is in good faith - as Biden could have asked Congress to act any time after the Supreme Court hamstrung the executive branch on the issue.

https://www.zerohedge.com/political/biden-makes-11th-hour-plea-congress-extend-eviction-moratorium

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This will make the already shitty landlord situation even worse….for the US Taxpayers. 

https://reason.com/2021/07/29/should-taxpayers-be-on-the-hook-for-all-rental-debt-accrued-during-the-pandemic/

 

What a fucked up mess this has all created. 
 

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If these numbers and charts are anywhere near accurate, man... it's gonna get ugly... really ugly.. plus, it states besides the charts, for 72 million, they don't have any data from the census dept...

At Least 12 Million Households Face Eviction As Moratorium Ends

Four-Point Synopsis 

  • 7.43 million renters are not current

  • 5.95 million homeowners are not current

  • 8.71 million homeowners have little or no confidence in ability to pay their mortgage

  • 12.71 million renters have little or no confidence in ability to pay their rent

Significant Other Details

  • The above numbers are undoubtedly understated because the status of 72.17 million households is unknown.

  • Rent plus back rent is due August 1.

  • There will be no more rent moratoriums without Congressional action as per Supreme Court Justice Brett Kavanaugh.

  • On September 1, Federal unemployment benefits expire. 

2021-07-29_13-57-59.jpg?itok=F9OWJIUm

2021-07-29_13-59-23.jpg?itok=3JqYfEMg

https://www.zerohedge.com/personal-finance/least-12-million-households-face-eviction-moratorium-ends

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I got it!!

Biden will let the moratorium expire, then when all these non-paying renters get kicked out, Biden will have places to move his new friends/voters that crossed over the Southern border, a place to live.

Nancy will come up with some sort of Section 8 program, and pay the landlords pennies on the dollar for the rents.

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ok. forget(for the sake of conversation) those listed as not confident in their ability to pay.

 

 of those renters/homeowners that are behind, and face eviction or foreclosure, how many of those have had the income(even if it was unemployment with the enhancement) to pay their bills, but chose not to? it should be easy to find, as they've all got tax records, they've all most likely got credit/debit cards. easy to see if their spending habits changed any. i'll bet they did. i'd bet that at a bare minimum one half of those "at risk" "gamed the game" and could've payed but used this govt created mess to not pay.

 also, are we doubling some of these numbers? are they counting owner AND renter for the same home in any instances?

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28 minutes ago, 1LtCAP said:

i'll bet they did. i'd bet that at a bare minimum one half of those "at risk" "gamed the game" and could've payed but used this govt created mess to not pay.

I think that would be a pretty accurate guess. Why pay if you're not forced to.

Which I think is why so many haven't gone back to work. If they aren't paying rent (which could be up to half their paycheck), they have a lot of spare coin for fun stuff, and the UE checks cover it.

There's still like 14 million on some sort of UE or pandemic relief (is that those 12 million?)

28 minutes ago, 1LtCAP said:

also, are we doubling some of these numbers? are they counting owner AND renter for the same home in any instances?

It comes from the census, so I would guess not, as the question is "do you own or rent".

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New report out that tells what percentage of renter are in arrears and behind.. It says that overall in NJ, that number is like 18% (data shows it varies by county, from 11% to 22%). So, one in five will be under the gun, and the moratorium ends today:

https://precisionforcovid.org/rental_arrears

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On 7/23/2021 at 11:42 PM, Sniper said:

......"A federal court on Friday ruled that the U.S. Centers for Disease Control and Prevention (CDC) overstepped its authority by halting evictions during the COVID-19 pandemic.

On 7/29/2021 at 12:27 PM, Sniper said:

President Biden has asked Congress to extend an eviction moratorium set to expire on Saturday, saying in a statement that while he would have strongly supported a decision by the CDC to do so, "the Supreme Court has made clear that this option is no longer available."

So, is the Biden administration thumbing their nose at the law? Sure seems that way...

CDC to issue new eviction ban effective through Oct. 3

....."The Biden administration is expected to announce a new federal eviction moratorium on Tuesday, according to a source familiar with the matter.

The eviction ban will be targeted at areas of the country experiencing high levels of coronavirus infections.

The protection will last for 60 days until Oct. 3, and should cover around 90% of renters.

https://www.cnbc.com/2021/08/03/cdc-to-issue-new-eviction-ban-effective-through-october-3.html

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