CARES Act Eviction Moratorium

CARES Act, Texas, Travis County and City of Austin Temporary Relief from Evictions for Certain Residential Tenants

Who/What is covered:

• The moratorium only applies to some residential tenancies:
  • If a tenant rents residential property participating in a covered housing program, OR the property has a federally backed mortgage loan, the tenant is covered.
  • Commercial buildings and other residential tenancies are not covered by the CARES Act, but may be covered by other overlapping local orders (see below).

If a person is covered:

• For 120 days after the enactment of the Act, the landlord may NOT:
  • file any action for eviction for nonpayment of rent
  • charge fees, penalties, or other charges related to non-payment.
• Further, after the 120-day moratorium runs, notices to vacate must give the tenant 30 days’ notice to move out, regardless of other contractual timelines, and may not be issued until after the 120-day moratorium ends.
• The tenant’s obligation to pay rent during the moratorium is not forgiven—this is just a deferral of the eviction remedy for non-payment. So the tenant will still owe the money, but the landlord has to wait to evict the tenant.

Nothing in the Act prevents a tenant from negotiating another deal with his landlord or prevents the landlord from making a new deal or lease with the tenant, if both parties agree.

In addition, landlords who have a federally backed multifamily mortgage loan who have experienced a financial hardship can receive up to 90 days of forbearance. Borrowers receiving forbearance may not evict or charge late fees to tenants for the duration of the forbearance period.

ADDITIONAL LANDLORD/TENANT ORDERS AFFECTING CENTRAL TEXAS

TEXAS SUPREME COURT’S FOURTH EMERGENCY ORDER

Effective March 19, 2020 (the order predates the CARES Act).

Who/What is covered:

• All residential tenancies in Texas.
• All residential eviction proceedings in Texas courts.

What the order does:

• No trial, hearing, or other proceeding may occur, and the running of all other deadlines are paused until April 19, 2020.
• Writs for possession may issue if judgment has already been entered, but execution of the writ may not occur until April 26, 2020.
• Courts may accept new filings, but citation may not be issued until April 19, 2020.
  • Landlords may want to file to preserve their place in line, but otherwise there is little incentive to do so.
• There is an exception for threats of physical harm or criminal activity.

TRAVIS COUNTY JUSTICES OF THE PEACE STANDING ORDER

Effective March 17, 2020, through May 8, 2020.

Who/What is covered:

• All residential AND commercial tenancies in Travis County, Texas.
• All eviction proceedings in Travis County Justice courts.

What the order does:

• All trials, hearings, and other proceedings are delayed, and the running of all other deadlines are paused until after May 7, 2020.
• Writs for possession may not issue until May 13, 2020.
• Courts may accept new filings, but there is no guarantee when citation may be issued.
  • Landlords may want to file to preserve their place in line, but otherwise there is little incentive to do so.
• There is an exception for threats of physical harm or criminal activity.

CITY OF AUSTIN “GRACE PERIOD” ON EVICTIONS

Ordinance approved on March 26, 2020.

Who/What is covered:

• All residential AND business tenancies in the City of Austin.
• This operates to extend the moratorium in effect in the Justice Courts.

What the ordinance does:

• Landlords must give a tenant 60 days to respond to notice of eviction before filing.
• Violation includes a fine of up to $500.
• Ordinance expires the 61^st day after May 8, 2020.
• Effect is that anyone who is late on April or May rent gets 60 days to cure before eviction can be filed.
• The pause does not explicitly prevent a landlord from terminating the contract prior to seeking eviction, then waiting for eviction remedy to be available.

April 2, 2020