HUD issues evictions guidance, housing stability brochure

Regulation | July 07, 2020 | by Juliana Bilowich, Juliana Bilowich

HUD provides additional info as CARES Act evictions moratorium expiration.

On July 1st, HUD published additional information for owners and residents of HUD-assisted housing about the expiring evictions moratorium. Evictions of HUD-assisted households for non-payment of rent were halted for 120 days by the CARES Act; the moratorium expires July 24th unless extended by Congress.

To help communities navigate what could be an impending “evictions cliff,” HUD’s Office of Multifamily Housing issued a Notice on tenant protections and forbearance for HUD-assisted housing communities; HUD also issued a brochure to help multifamily property owners promote housing stability during the pandemic.

Forbearance Extensions for HUD Properties

In a Notice titled “Coronavirus Aid, Relief, and Economic Security (CARES) Act Evictions Moratorium,” HUD’s Office of Housing announced an extension of the moratorium on evictions in communities with HUD-insured or HUD-held mortgages that are under forbearance.

Borrowers who requested forbearance immediately after enactment of the CARES Act will soon reach the end of the initial 90-day forbearance term; however, those owners much continue to comply with the 120 moratorium on evictions for non-payment of rent. In addition, any new, adjusted, or amended forbearance terms will continue the evictions protections.

Tenant Protections for Properties not subject to Forbearance

Issued on July 1st, Notice H 20-07 also provides guidance on tenant protections for multifamily housing properties that are not subject to forbearance, and those with HUD-assisted units.

The Notice states: “HUD is particularly concerned about the impact of the expiration of the tenant protections provided by the CARES Act, and encourages owners, agents, and contract administrators to work with those residents who have been impacted by the COVID-19 emergency.”

In the Notice, HUD recommends the following measures by owners and managers to help residents preserve housing stability:

  • Rent repayment plans
  • Delayed evictions
  • Loans or other resources to lessen the impact of lost rental income
  • State and local evictions moratoria

Notice H-20-07 remains in effect throughout the national emergency declared on March 13th, 2020, or until rescinded.

Brochure to Promote Housing Stability

In early July, HUD also issued a brochure titled “Promoting Housing Stability During the COVID-19 National Emergency.” The brochure applies to Multifamily Housing programs, but is not applicable for Public Housing or Housing Choice Voucher programs.

HUD’s housing stability brochure details protections for renters during the CARES Act evictions moratorium, and also describes options that owners have following the expiration of the moratorium. Owners must give a 30 day notice to vacate after the moratorium has ended, and must also follow and state or local grace periods.

As with the July 1st Notice, the agency recommends that owners enter into repayment plans or delayed evictions, for both HUD-assisted and unassisted renters experiencing economic hardship. Lastly, the brochure provides resources for other types of assistance for renters, including emergency assistance for rent, utilities, and basic necessities.

The housing stability brochure and HUD’s tenant rent brochure from April, 2020 are available online.