College of Liberal Arts Interviews Dennis Jansen on Eviction Moratorium
Sep 07, 2021
Summary: Dennis Jansen spoke about the challenges of the revised eviction moratorium in an article published by the College of Liberal Arts at Texas A&M University on Monday, September 6, 2021.
In 2020, as new coronavirus cases ticked up, pandemic-induced government shutdowns began.
“Government actions at the federal, state, and local levels basically shut down large parts of the economy such as restaurants and stores and private responses to the pandemic reduced demand in other large parts of the economy such as hotels and air travel,” Jansen said. “These actions by the government and by private individuals led to the sharpest recession on record, and the highest unemployment rates since the Great Depression.”
Enter the CARES Act, passed in March of 2020, which included a 120-day moratorium on residential evictions and foreclosures on properties with federally backed mortgage loans.
The eviction moratorium, now extended several times over the past 18 months, has put a substantial, undue burden on U.S. landlords. “When a tenant doesn’t pay rent, the landlord’s net income quickly turns into a net loss,” Jansen explained. “Without rent, the landlord not only loses their net income but actually has to dig into their own pocket to pay for mortgage payments, insurance, property taxes, and property maintenance.”
In a recent PERC blog post
from August 19, Jansen, with coauthors Liu and Rettenmaier, opined that “individual landlords are less akin to Bill Gates or Jeff Bezos and more like your neighbor next door.” These small “mom and pop” landlords are very much injured when a tenant does not pay rent due them by contract.
The eviction moratorium was vacated by the Supreme Court, stating that the CDC overstepped their authority, in a ruling dated August 26, 2021.
Read the full article here.