On January 21, 2021, the Centers for Disease Control and Prevention (CDC) announced that it had extended the eviction moratorium initially issued in September under Section 361 of the Public Health Service Act (42 U.S.C. 264) and 42 CFR 70.2. The moratorium is now in place through at least March 31, 2021 and could be extended further.

The same limitations that existed on the moratorium previously will remain in place. The moratorium applies only to evictions for nonpayment of rent. In order to be qualified as a protected person under the CDC order a tenant must also earn less than $99,000 per year (or $198,000 for a couple). Tenants must also sign a declaration stating that they have used their best efforts to obtain all available government assistance for rent or housing, be unable to pay the full rent due to substantial loss of household income, loss of compensable hours of work or wages, a lay-off, or extraordinary out-of-pocket medical expenses, and that they likely would be rendered homeless if evicted.

The CDC Order does not relieve tenants from their obligation to pay rent or comply with any other obligation that he/she may have under their lease. Furthermore, the Order does not preclude landlords from charging or collecting of fees, penalties, or interest as a result of the failure to pay rent or other housing payment on a timely basis, under the terms of the lease.

The Michigan Supreme Court has provided lower courts with additional guidance regarding how they should handle evictions for nonpayment of rent. If the CDC moratorium does not apply to a defendant tenant, the trial court should proceed as normal. However, if a tenant is qualified as a protected person under the order, the trial court only can proceed to the point of issuing a judgment for possession in favor of the landlord. The court must then stay the case and cannot issue a writ of eviction until the CDC moratorium has expired.

It should be expected that the CDC will extend the moratorium again beyond March 31. In fact, it is possible that it could be extended until Fall 2021. Consequently, we recommend that you attempt to work with a resident after a judgment has been entered to make some rental payments, even if they are partial payments. Unlike the prejudgment phase of the eviction process, partial payment of rent after a judgment is entered does not terminate the eviction. After receiving a judgment for possession, a landlord can accept partial payment and retain the right to seek a writ of eviction if the full balance is not paid before the deadline. However, you should not enter such an agreement until after a judgment has been entered by the court. Acceptance of partial payment of rent after serving a demand for possession but before receiving a judgment could be interpreted by the court as stopping the eviction, which would force you to restart the eviction from the beginning.

Should you have any questions regarding this Order or have any landlord-tenant related concerns, please do not hesitate to contact a member of our Post-Acute Care Practice.

Any information included here or through our web site is presented solely for general informational purposes and is not in any way intended as legal advice, is not a substitute for getting actual legal advice from an attorney, and should not be acted upon as legal advice without first seeking qualified professional counsel specific to your needs and situation. Additionally, by providing this general information and the information on our web site, no attorney client relationship is created.

Authored by Michael Kern

CDC Extends Order Protecting Most Tenants From Eviction For Non-Payment of Rent

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