Federal Judges Rules Against CDC’s Eviction Moratorium

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A Washington D.C federal judge has ruled against the CDC’s nationwide eviction moratorium. The reason why this is a big deal is because it can have an impact on eviction throughout the United States. 

There have been several cases in the past on the eviction moratorium but they may not have had as much impact as they were more on a local basis. 

This recent ruling is set to take place nationally and may prompt the Biden Administration to request a reconsideration.

The question now is how will this affect the economy, the stock markets, and the many people who could have issues presenting the funds necessary to be in good standing with their respective landlords.

The Key Details on The Eviction Situation

A federal judge in Washington D.C noted CDC went above its legal authority by pushing for the national eviction moratorium. If the ruling stands, it can create issues for those that are still behind on their payments and have not made any arrangements with their respective property owner. As such, the ruling, if it stands, can affect over six million Americans that are still behind on housing payments.

There were over 38 million Americans that did not have the means to pay their rent at the height of the pandemic. That is to say that a meaningful portion of the American population was not able to make their rent in 2020.

Judge Dabney’s Friedrich’s ruling notes that the measures implemented by the Trump government and renewed under the Biden government poses quite a bit of issues. The judge’s order contains over 18 pages and notes that the moratorium that is scheduled to finalize at the end of June reeks of overreach.

She notes in her order “it is the role of the political branches, and not the courts, to assess the merits of policy measures designed to combat the spread of disease, even during a global pandemic.” The judge continues “the question for the Court is a narrow one: Does the Public Health Service Act grant the CDC the legal authority to impose a nationwide eviction moratorium? It does not.”

The current Federal government may be in the process of asking for an appeal.

The Eviction Moratorium is a Panacea to A More Pressing Problem

At the same time, property owners who have structured their investments around the fact that they will earn revenues have had to cover their costs. As such, they have separately challenged the order in various cases, and won in some cases, to evict tenants.

These business owners note that they will have to deal with excessive financial burdens if they have to continue to bear the eviction moratorium. They argue that the imposition is one that the CDC did not have the authority to implement and note that several judges have ruled in their favor.

Housing advocates have pushed back on the matter, noting that this causes more confusion for residents as they may not know where they stand. The recent ruling makes it a bit more clear for landowners. Meanwhile, property owners have had the ability to process evictions due to certain legal workarounds and legal translations. At the present moment, the Census Bureau notes that 1 out of 7 renters are not up to date on their housing payment.

The current picture in the United States is an increase in debt, wage stagnation, and the gradual cost of goods and services rising over time. Each of these aspects combined together does not create a healthy economy over the long-term. As such, it is essential to watch for signs of further distress in housing, equities, and fixed income instruments.