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Federal moratorium will delay some evictions, won’t waive rental debt

INDIANAPOLIS (WISH) — A federal order set to take effect Friday will delay eviction proceedings against some Hoosiers devastated by the coronavirus pandemic.

The eviction moratorium issued Tuesday by the Centers for Disease Control and Prevention (CDC) aims to slow the spread of COVID-19 by temporarily addressing the nation’s housing crisis.

The 37-page order states “housing stability helps protect public health” and notes homelessness could worsen outbreaks of the virus.

Renters covered by the order cannot be evicted for nonpayment of rent through Dec. 31.

To qualify, renters must provide a signed declaration certifying they are unable to pay full rent due to job loss or reduced hours caused by COVID-19; they made their “best efforts” to obtain available government assistance for rent; they made their “best efforts” to make partial rent payments; they would become homeless or have to move into congregate settings if evicted; and their annual income does not exceed $99,000.

The Indiana Rental Assistance Program closed without a formal waitlist for prospective applicants after less than two months. It’s unclear if signing up for the program’s “notification list” qualifies as “best efforts” to obtain government assistance.

“I’m cautiously optimistic (about the federal moratorium). I think the heart is in the right place,” said Molly Martin, director of New America Indianapolis.

Marion County has the nation’s 14th highest eviction rate with more than 57,000 households evicted from 2014 to 2018, according to research conducted by the nonprofit think tank.

Martin applauded federal efforts to “stem the tide” of evictions caused by the pandemic but said the CDC’s order “doesn’t do much to address the fact that… we already had a (housing) crisis on our hands” in central Indiana.

She worried Hoosier tenants with the greatest need would be less likely to take full advantage of the order’s protections.

“To ask folks to be able to prove to a system that ‘yes, I lost my money (and) I lost my income because of COVID-19’ is a fairly tall order,” Martin told News 8. “They may have lots of children to take care of. Maybe you have to submit a form and you don’t have broadband at home.”

Tenant advocates said the federal moratorium provided much-needed but only fleeting relief.

The order does not prevent renters from accruing debt. Landlords can collect back rent, penalties and interest after the moratorium expires.

“Renters, even under a moratorium, are still obligated to pay their rent,” warned Jacob Sipe, executive director of the Indiana Housing and Community Development Authority.

The moratorium appears to “prohibit all phases of the eviction process” and is expected to halt pending eviction cases against Hoosier renters covered by the order, according to Brandon Beeler, director of the Housing Law Center at Indiana Legal Services.

Landlords can still proceed with eviction filings if a tenant “engages in an activity that violates the lease” other than nonpayment, Beeler said.

An Indianapolis woman who said she couldn’t pay rent after the pandemic shuttered her business had mixed feelings about the moratorium.

“On the one hand, I feel like it’s a blessing. On another, it’s scary because I feel like it will truly upset the landlords and some landlords will retaliate,” she told News 8.

The tenant spoke on condition of anonymity due to ongoing legal proceedings. Her landlord filed to evict her in late August, according to online court records.

She believed the federal order would halt the case but feared her landlord would seek another reason to file for eviction.

“I feel strongly any landlord will probably try to fight it,” she said.