For landlords of properties covered under the CARES Act’s eviction moratorium, the past months have presented new challenges. Amid the COVID-19 crisis, you’ve had to adopt new policies to protect your residents, pay for additional cleaning at your property and educate your residents. Meanwhile, it’s likely you’ve not received rent from some of your tenants. The good news for property owners is that the eviction moratorium ends on August 30. The bad news is evictions aren’t pleasant for anyone, but they are necessary for a business to continue operating.
What properties does the CARES Act cover?
The CARES Act does not cover all rental properties, only those with federal program ties or federal loans.
Your property qualifies if:
- You participate in a federal assistance program
- You have a federally backed mortgage loan
- You have a federally backed multifamily mortgage loan
- You are part of public housing
- You use Housing Choice Vouchers
- You use Section-8 Project-Based Rental Assistance
- You are part of a rural housing project
- You are part of the Low-Income Housing Tax Credit program
What does this mean for my qualifying business?
The CARES Act prevents property owners of qualifying properties from initiating eviction proceedings or charging late fees on missed payments for the period allotted (March 27 through August 30). After the 120-day period, you may issue a 30-day notice to initiate eviction proceedings.
Your tenants still owe you their rent, despite the difficult financial straits many individuals find themselves in. You have a right to pursue collections and proceed with legal action in the event of non-payment.
Does New Mexico have any additional eviction moratoriums I should know about?
New Mexico has issued one additional order regarding evictions from mobile homes. Given the public health crisis and the risk of infection through person-to-person contact, property owners of mobile park homes cannot evict their residents for any reason. This order was issued March 26, 2020, and will remain in effect until withdrawn.
The COVID-19 crisis has affected all Americans. It has required us to adapt, come together and change. However, as a business owner, you must continue to make decisions that allow you to support yourself and the tenants who depend on you. Plan for the end of the eviction moratorium accordingly so that you can make your next move with confidence, equipped with the knowledge and legal assistance necessary.