Eviction Moratorium Update

Louisiana REALTORS • August 17, 2021

Latest update on eviction moratorium

The current CDC eviction moratorium was issued on August 3rd and is set to expire October 3rd. The White House refers to this as a "new moratorium"  The new moratorium is intended to halt evictions in areas hardest hit by COVID-19 and the delta variant. The CDC said without the moratorium, evictions in these areas would likely boost the number of infections.


On the afternoon of Friday, August 13th, a United States District Court rejected an effort to end the new eviction moratorium despite raising questions about the new order's legality.


United States District Court Judge Friedrich said she would have blocked the eviction order but was unable due to precedent regarding United States Supreme Court rulings. "The Supreme Court did not issue a controlling opinion in this case, and circuit precedent provides that the votes of dissenting justices may not be combined with that of a concurring justice to create binding law," she wrote.


The consensus is that further appeals of this decision and others will take place.


CDC Eviction Moratorium August 3rd through October 3rd


The CDC Eviction Moratorium is focused on halting evictions in parishes and counties with “heightened levels of community transmission.”  Application of the moratorium follows the level of COVID infection rates in a given county or parish as tracked by the CDC, which may be lifted or reinstated based on rates of transmission over 14 consecutive days.


But, I thought the United States Supreme Court said the CDC did not have authority to extend the moratorium?


Not exactly. 


On May 5, 2021, U.S. District Court Judge Friedrich struck down the nationwide eviction moratorium, calling it unlawful.


The Department of Justice appealed the ruling and filed a motion for an emergency stay, in response to which the court issued a temporary administrative stay – meaning the CDC eviction moratorium remained in place. When a court “stays” a decision it essentially puts the decision on pause when higher courts review it.


The housing providers appealed the stay to the Supreme Court of the United States.


On June 29, 2021, the Supreme Court issued its decision on the case, Alabama Association of REALTORS®, et al. v. Department of Health and Human Services, et al. wherein the Court indicated it agreed with the housing providers that the CDC does not have the authority to issue a nationwide eviction moratorium, but it fell one vote short of lifting the stay of the moratorium before it expired on July 31, 2021.


This is because Justice Kavanaugh concurred with the justices upholding the stay. However, Justice Kavanaugh believed the CDC lacked the Congressional authority to extend the moratorium but concurred because a July 31st expiration of the moratorium would allow for an orderly distribution of rental assistance funds. 


I heard a bill to authorize the CDC moratorium extension did not pass. How can the CDC still do this?


You are correct. Legislation was filed in Congress to direct the CDC to extend the eviction moratorium and it did not get the votes to pass.


This effort was made after the White House said that Congress should authorize the extension after the United States Supreme Court indicated the evection moratorium should end July 31st.


The CDC then issued a new and targeted ban on evictions that is set to go through Oct. 3. The White House refers to this as a "new moratorium." 


Supporters of the moratorium have acknowledged the action will face legal obstacles, and NAR is currently exploring all potential avenues considering the support it provided to the ongoing litigation brought by the Alabama and Georgia Associations of REALTORS®, two housing providers, and their property management companies.

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Week 10 brought meaningful movement on several Louisiana REALTORS® priorities affecting real estate, property rights and insurance. And Week 11 is shaping up to be one of the most important stretches of the session. The biggest developments last week were the final Senate passage of HB 468 by Rep. Troy Hebert with amendments, movement of HB 1027 by Rep. Hebert to the Governor for executive approval, continued Senate progress on HB 1187 and HB 1166 , and final legislative action on SB 180 . REALTOR® Day at the Capitol also came at an important time, giving members the opportunity to reinforce industry priorities with legislators as several key bills neared final passage or awaited committee, concurrence or floor action. Just as importantly, the Louisiana REALTORS® legislative package has now cleared most of its major hurdles, and barring any late-session surprises, the remaining package’s bills should be headed to the Governor’s desk shortly. On the core real estate package, HB 468 , the wholesale regulation bill, remains the most immediate priority. The Senate passed the bill 34-0 on May 12 with amendments, and it now returns to the House for concurrence. That places it in a fast-moving posture, and members should be prepared for quick House action once concurrence is called. HB 1027 , the appraiser liability bill, has now moved into final executive posture after passing the Senate 35-0 without amendments and being sent to the Governor. Together, those two bills represent major wins for consumer protection, market integrity and greater certainty in the real estate transaction process. Insurance remains one of the busiest and most important policy areas as we head into Week 11. HB 1187 , dealing with Louisiana Citizens for emergency assessments, was reported favorably by the Senate Insurance Committee and is now pending Legislative Bureau for review in the Senate. HB 759 , addressing fortified roof endorsement offers, remains one of the more important insurance and mitigation bills still in play and is positioned for Senate floor action. HB 408 , which would prohibit insurers from non-renewing residential policies when homeowners timely mitigate risks, remains pending in House Insurance, as does HB 1210 , which would create a mandatory pre-suit claim review process for residential property insurance. Additional insurance measures, including HB 850 on Standard Fire Policy cancellation notices, HB 1162 on contractor verification in insurance claims, and SB 241 on adjuster and appraiser license-number disclosure, also remain active. These bills continue to matter because insurance affordability, mitigation, claims handling and policy stability remain central to property ownership and transaction viability across Louisiana. On disclosure and regulatory matters, HB 1166 by Rep. Kim Carver , requiring disclosures for vacant residential property and carrying out the adopted LREC reform amendment, was reported favorably by the Senate Commerce Committee and is now pending with the Legislative Bureau for review in the Senate. That keeps the bill in a strong position for Senate floor movement and makes it one of the key bills to watch in Week 11. SB 180 , allowing a surviving spouse of a deceased disabled veteran to transfer an expanded property tax exemption under certain circumstances, has completed legislative action and is now in final processing. Week 10 and the run into Week 11 also reflected an important defensive win for Louisiana REALTORS®. Our team successfully worked to block and tackle HB 617 and HB 750 to ensure real estate and nonprofit activity were not swept into overly broad consumer protection frameworks. On HB 617 , Louisiana REALTORS® opposed the bill as drafted and worked to posture it so that real estate professionals would not be caught up in a fee-disclosure framework that does not fit the realities of real estate transactions. On HB 750 , we worked to ensure the bill would not be interpreted to reach real estate or nonprofit operations in a way that could create unintended compliance burdens for leases, property management arrangements, association activity, or recurring charges authorized under those structures. That effort helped keep broad subscription-style language from bleeding into housing and nonprofit operations where it plainly does not belong. Civil justice and broader property rights measures also remain active entering Week 11. HB 437 , dealing with expert witness fees, and HB 1089 , creating CARE Accounts for certain damages arising from delictual actions, remain pending in Senate Judiciary A and remain high-priority tort reform measures to watch. HB 472, the rent stabilization bill, remains involuntarily deferred and stays on the watch list for any attempted revival through another vehicle or amendment. Additional redevelopment and tax-related measures, such as HB 214 and HB 217, also remain relevant to the broader conversation on blight, reinvestment and neighborhood stabilization. A few additional housing and valuation bills are also worth noting HB 292 on security deposits, HB 297 on early lease termination in stalking and cyberstalking situations, and HB 300 on appraisal thresholds for bank-owned property have all advanced and remain part of the broader housing policy landscape. The practical takeaway is straightforward: Week 11 will likely move fast, and late-session maneuvering can matter as much as headline floor votes. Louisiana REALTORS® should be prepared for House concurrence on HB 468 , further Senate movement on HB 1166 and HB 1187 , continued action on insurance and tort reform, and the possibility of late amendments or procedural pivots on bills affecting real estate transactions, private property rights, housing affordability, nonprofits, property managers and the broader real estate industry. The package is in strong shape, but this is the point in the session when the finish line comes into view and traffic gets thick. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates. 
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