The builders' association says the moratorium could push mom-and-pop landlords into foreclosure
The National Association of Home Builders has filed a complaint against the US Centers for Disease Control and Prevention over its eviction moratorium order.
In partnership with Pacific Legal Foundation, the NAHB – along with Skyworks Ltd, Cedarwood Village, and Monarch Investment and Management Group – filed the complaint in the Northern District of Ohio. The complaint challenges the CDC’s authority to issue an eviction moratorium.
The CDC’s order, which took effect Sept. 4, prevents landlords from evicting tenants who are not paying rent through Dec. 31.
“The CDC’s order provided no relief for landlords who must continue to pay bills, maintain the units and pay their employees all while receiving no rent. NAHB does not believe that Congress provided the CDC with authority to issue such a sweeping nationwide order,” the builders’ organization said.
“NAHB is concerned the CDC’s rental eviction moratorium could result in unforeseen negative economic consequences without dedicated funding for rental assistance,” said NAHB Chairman Chuck Fowke. “Absent rental income, these small mom-and-pop property owners must continue to pay their mortgage, property taxes, employees and cleaning/maintenance services. And without sufficient rental income, a number of properties would be pushed into foreclosure.”
The NAHB is hardly the first organization to challenge the CDC’s authority when it comes to eviction moratoriums. In September, the New Civil Liberties Alliance (NCLA) filed a lawsuit on behalf of plaintiffs including the 85,000-member National Apartment Association that challenged the agency’s standing to issue the moratorium. NCLA litigation counsel Caleb Kruckenberg called the moratorium order “an outrageous abuse of agency authority.”