If youâre behind on your rent because of the coronavirus pandemic, you just got extra time to catch up. During his first day in office, President Joe Biden extended an order that bars most landlords from pursuing evictions through the end of March 2021.
With millions of people at risk of eviction, housing advocates have argued that a large wave of homelessness could worsen the spread by crowding shelters and forcing people into cramped living spaces.
7 Eviction Moratorium FAQs: What Renters and Landlords Should Know
President Donald Trump initially passed the order through the Centers for Disease Control in response back in August. Before Biden ordered the extension, the moratorium was set to end Jan. 31, 2021. Weâve compiled what we know about the latest order into this eviction moratorium FAQ.
1. How do I know if I qualify for the eviction moratorium?
To qualify, youâll have to sign a sworn declaration affirming that:
- Youâve tried to obtain government assistance for your rent or housing payments.
- You earned no more than $99,000 in 2020 if youâre a single tax filer or $198,000 if youâre married filing jointly. You could also qualify if you werenât required to file taxes in 2019 or if you received a coronavirus stimulus check. (The income limits for the first stimulus checks were the same as the moratorium limits.)
- Youâve been unable to pay the rent because you lost your job, income or work hours, or youâve had significant medical expenses.
- Youâve made your best attempt to make partial payments that are as close to the full payment as possible.
- The eviction would either leave you homeless or force you into close quarters or a shared living situation.
2. What should I do if my landlord is threatening to evict me?
Print out this declaration form, fill it out and give it to your landlord or whoever owns the property you live in. Note that the form still cites Jan. 31, rather than March 31, as the date the moratorium ends. Each adult covered by the lease should print out their own form. You donât need to send a copy to the federal government.
3. Does this mean my back rent is forgiven?
No, no, NO. We cannot stress that point enough. Any unpaid rent you owe will continue to accrue. In fact, the order explicitly states that it doesnât preclude landlords from charging fees, penalties and interest as the result of missed payments.
If your rent is $1,000 a month and you last paid in August, you should expect to owe $7,000 in back rent for September through March, plus whatever fees and interest your landlord tacks on AND Aprilâs rent when April 2021 rolls around.
4. Does the order provide money for rental assistance?
No. The order simply delays eviction proceedings for another two months. It doesnât offer financial assistance for renters or landlords. However, the stimulus bill that became law in December included $25 billion in emergency rental assistance.
The assistance will be administered by state and local governments. Renters may be eligible if their household income is less than 80% of the area median income, theyâve been impacted financially by COVID-19 and theyâre at risk of losing their home. Money can be used for back rent and utility payments, as well as future payments.
To apply or get more information, youâll need to contact your local housing agency. Figuring which agency to connect with can get complicated. If youâre not sure what agency to contact, try calling the 211 helpline for direction.
5. Iâm a landlord who lives off of rental income. What does this order mean for me?
The order doesnât include financial assistance, however, you could be eligible for a piece of the $25 billion of rental relief. Check with your local housing agency for more information.
Landlords can still pursue evictions, back rent, fees and interest once the moratorium ends. But the order also makes it clear that landlords who violate it could face hefty penalties.
An individual who violates the order could face a fine of up to $100,000, a year in jail or both â and thatâs if the eviction doesnât result in death. If a death does occur, the possible fine goes up to $250,000, in addition to the possibility of a year in jail.
Organizations that violate face a fee of up to $200,000 in cases that donât involve death, or up to $500,000 for cases where a death occurs.
6. What if I live in a motel?
Youâre not covered under the order. The moratorium only applies to tenants covered under a lease. It explicitly states that those living in hotels, motels and other temporary housing are excluded.
In this case, we strongly suggest calling the 211 helpline, which can connect you with local housing resources.
7. Are there any circumstances in which a tenant can still be evicted?
Yes. You can still be evicted for reasons other than not paying. Engaging in criminal activity on the property, threatening other tenants and causing property damage are all still grounds for eviction.
What to Do if Youâre Behind on Rent
If youâre behind on rent, you need to treat this as a temporary reprieve to get a plan in place. Donât wait until March to make your action plan.
Your first step is to try negotiating with your landlord. They may be willing to accept partial payments or waive fees, particularly if you can show them that youâll be able to resume on-time payments.
Take a hard look at all your bills. Your food, health care and shelter are your top priorities. Weâd advise paying your rent unless doing so means going hungry or without medication. Stop making credit card and loan payments if you must. Youâll still owe that rent come April. It will be a lot easier to recover from falling behind on credit cards than losing your housing.
Get connected with local resources now. When youâre facing homelessness, the best resources are available at the local level. Calling that 211 helpline now, even though youâre not on the brink of eviction, is a good starting point. They can also connect you with local food pantries, which could free up some money to put toward rent.
Reach out to family and friends. If you know someone with a spare room who might be willing to let you move in, now is the time to start talking â provided, of course, that the living situation wouldnât put you at increased risk of contracting the coronavirus.
Pay whatever you can. Every dollar you can put toward rent is a dollar that you wonât owe in April, so pay as much as you can toward your rent, even if you canât afford the full amount. If you do find yourself facing eviction, showing that you made a good-faith effort to pay can only help your case.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder. She writes the Dear Penny personal finance advice column. Send your tricky money questions to [email protected].
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.