MReport September 2021

TheMReport — News and strategies for the evolving mortgage marketplace.

Issue link:

Contents of this Issue


Page 62 of 67

TH E M R EP O RT | 61 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST GOVERNMENT Biden's Eviction Moratorium Blocked After Supreme Court Ruling The U.S. Supreme Court has put a stop to the extension of the eviction moratorium by the CDC, with tenants losing vital protections. T he U.S. Supreme Court, by a vote of 6-3, blocked the Biden Administra- tion's order prolonging the federal eviction moratorium to counties experiencing substantial community transmission levels of COVID-19. It was the opinion of the Supreme Court that the U.S. Centers for Disease Control (CDC) exceeded its authority by issuing the temporary ban. Earlier in August, CDC Director Dr. Rochelle Walensky signed an order determining the evictions of tenants for failure to make rent or housing payments could be detrimental to public health control measures to slow the spread of COVID-19. The CDC order was set to expire Sunday, October 3, 2021. "The Biden administration is disappointed that the Supreme Court has blocked the most recent CDC eviction moratorium while confirmed cases of the Delta variant are significant across the country. As a result of this ruling, families will face the pain- ful impact of evictions, and com- munities across the country will face greater risk of exposure to COVID-19," a White House state- ment issued by Press Secretary Jen Psaki said. The CDC's moratorium has prevented many in the nation from eviction, with an esti- mated seven million still behind on housing payments due to pandemic-related issues. And while Congress approved nearly $50 billion to help Americans pay back rent and avoid eviction since the onset of the pandemic, the process of doling out assistance to those in need of it has been met with some roadblocks. This month, the U.S. Treasury had reported that nearly $46 bil- lion in government rental aid is still being disbursed at a sluggish pace, with approximately 11% so far in the hands of renters and property owners who need it. While the pace of distribution in- creased moderately from the prior month, total aid disbursed to date comes to just about $5.1 billion, according to the Treasury. "I am deeply disappointed by the Supreme Court's ruling on the CDC's eviction moratorium. With this decision, the Court has put millions of Americans at risk of losing their homes—even as the Delta variant heightens their risk of exposure to COVID-19," U.S. Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge said. "Many of these Americans are among our most vulnerable—including senior citizens, people with chronic illnesses, young children, and families with the lowest incomes. I pledge that the Department of Housing and Urban Development will continue to use every tool at our disposal to protect those people whose health and well- being are now in jeopardy." The CDC's moratorium ex- tended important protections to tenants, but was far from compre- hensive, according to "Preliminary Analysis: 11 Months of the CDC Moratorium," a report issued by The Eviction Lab. "Tenants were required to provide a declaration of qualification to their landlords, who could continue to file evic- tion cases and challenge tenant eligibility in court." The Eviction Lab estimates that the CDC moratorium has helped prevent 1.55 million eviction filings nationwide since being issued in early August. "In light of the Supreme Court ruling and the continued risk of COVID-19 transmission, President Biden is once again calling on all entities that can prevent evic- tions—from cities and states to local courts, landlords, Cabinet Agencies—to urgently act to prevent evictions," Press Secretary Psaki said. In late July, a group of elected officials, including Reps. Cori Bush, Ilhan Omar, and Ayanna Pressley slept outside the U.S. Capitol in a form of protest over the expiration of the previous eviction moratorium. A victim of eviction at one time herself, Rep. Bush urged her colleagues to take action before Congress was sched- uled to take their recess beginning August 1. "We didn't sleep on those steps just to give up now," Tweeted Rep. Bush after the Supreme Court's decision. "I urge my col- leagues to reflect on the human- ity of every single one of their unhoused, or soon to be un- housed, neighbors, and support a legislative solution to this eviction crisis." Income Housing Tax Credit (MIHTC) that would con- tinue where the very successful LIHTC program leaves off, by providing a tax credit to developers who house tenants between 60% and 100% of area median income. The credit would equal 50% of the present value of construction costs, or 5% per year on an undiscounted basis. States would administer the program, and Treasury would annually allocate the credit to states based on a $1 per capita formula with a $1.14 million small state minimum. States could also use MIHTC dollars to augment their LIHTC program. » The DASH Act also features the Neighborhood Homes Investment Act (NHIA), a tax credit to home builders that targets neighborhoods with poverty rates of 130% or greater than the metro or state rate; incomes that are 80% or less than area median income; and home values that are below the metro or state median value. Qualifying homeowners make less than 140% of the area median income. The credits would only be available to investors after the homes have been completed and sold to a homeowner. The maximum credit amount is the lesser of 35% of total development costs or 80% of the national median home sale price. State agencies would receive annual alloca- tions of $6 per capita (or $8 million, if higher), and would award NHIA tax credits to project sponsors. » Down Payment Tax Credit for First-Time Homebuyers, a new $15,000 first-time home buyer tax credit is fully refund- able and equal to 20% of the purchase price of a home. The credit phases out above 110% of conforming loan limits (about $603,000 in Oregon) and above $100,000 of income for single filers ($200,000 for joint filers). The credit can be recaptured if the taxpayer resells the home in under five years (with some exceptions).

Articles in this issue

Archives of this issue

view archives of TheMReport - MReport September 2021