The CDC, at the direction of the Executive Office, has released an order effectively preventing renter evictions until 2021.

This moratorium won’t apply to all renters, but most at-risk families and individuals in lower and middle-income brackets will be protected. This order makes good on President Trump’s promise to prevent evictions during the Coronavirus Pandemic.

Protection for around 40 Million Renters

There are around 43 million residential renters in the United States, and up to 40 million will be protected by the new order.

The CDC states that individual renters earning less than $99,000 per year can apply for protection. Joint renters earning less than $198,000 per year may also apply. The agency doesn’t believe that there will be an “overwhelming” response for the program, but having it available will provide essential relief for families and solo renters who are struggling the most.

The moratorium applies to all rental units and is effective until December 31. People who want to take part in the program will need to file sworn declarations with the CDC, stating that eviction would lead to homelessness or an unsafe shared living situation during the Coronavirus Pandemic.

Renters are advised to continue paying as much rent as they can during the moratorium period. All arrears will still be due and are expected to be paid. The Trump administration warned that renters who fail to pay or make suitable arrangements could face fines and legal action. Likewise, people who lie in their declarations and falsely apply for the moratorium could be prosecuted.

What it Means for Landlords

Landlords are also facing challenges during the health crisis. Missed rent payments could prevent some from servicing their mortgages. Currently, the federal government doesn’t have any active relief program for landlords. However, many banks offer mortgage holidays for people affected by the Coronavirus Pandemic. Most major banks will offer payment holidays for up to three months at a time, up to a maximum of six months.

Mortgage holidays, like the eviction moratorium announced by the CDC, are temporary fixes. They could make repayments hard to manage at the end of the holiday.

The Economy is Slowly Recovering

While unemployment is still high, the nation is slowly re-adding jobs that were lost earlier during the health crisis. While it could take months or even beyond 2021 to get back to previous growth levels, renters and landlords can at least gain some peace of mind knowing that the worst of the economic impact seems to have passed.