Missouri Real Estate Lawyer

Under the CARES Act, enacted nationwide in March of 2020 in response the global economic shutdown, a landlord may not, prior to July 26, 2020, file a lawsuit to evict a tenant from covered property (defined below) for the nonpayment of rent or other fees or charges. After July 25, 2020, a landlord may not “require” a tenant to vacate covered property for the non-payment of rent that accrued prior to July 26, 2020 without first providing the tenant with a 30-day notice to vacate. The notice may not be provided until July 26, 2020. The act does not state whether the filing, prior to the expiration of the 30-day notice, of a lawsuit to recover possession of covered property is “requiring” the tenant to vacate the property. If the 30-day notice is provided on July 26, 2020, then August 25, 2020 is the earliest date that a landlord may “require” a tenant to vacate covered property. Additionally, a landlord may not recover fees, penalties, or charges related to past due rent owed on covered property. The act does not state whether this prohibition also applies to attorney’s fees. In some circumstances the act raises more questions than answers. Landlords might reference communications from the federal agencies that govern public housing, like this FAQ from HUD, for further guidance, although such communications typically are not law and should not be relied upon in making finals decisions about the application of the act. The act does not impose a penalty for violating the moratorium, but a violation will likely provide the tenant with a defense to an eviction lawsuit filed in violation of the act. A violation might also place at risk the landlord’s right to participate in federal programs related to covered property.

St. Louis County Affidavit

Additionally, on May 13, 2020, the St. Louis County Circuit Court issued an order requiring all landlords filing a lawsuit prior to July 26, 2020 to recover possession of covered property to also file with the petition an affidavit, which is provided by the court, stating that the property that is the subject of the lawsuit is not covered property. The court will reject any such lawsuit filed between May 13, 2020 and July 25, 2020, unless the affidavit is filed with the petition. If such lawsuit was filed in the St. Louis County Circuit Court before May 13, 2020, then the Landlord must file the affidavit prior to initiating any court procedure, such as a hearing, trial, or eviction. Landlords should check for similar requirements before filing such lawsuit in any other Missouri state circuit court.

Covered Property

Under the act, “covered property” means any property that (i) participates in a “covered housing program”, (ii) participates in the “rural housing voucher program”, (iii) secures a “federally backed mortgage loan”, or (iv) secures a “federally backed multifamily mortgage loan”. The eviction moratorium of the act applies only to certain residential covered property and includes residential property that is occupied by the landlord along with one or more tenants.

Covered Housing Program

A “covered housing program” includes:

The program under 12 U.S.C. 1701q (Supportive housing for the elderly);

The program under 42 U.S.C. 8013 of the Cranston-Gonzalez National Affordable Housing Act (Supportive housing for persons with disabilities);

The program under 42 U.S.C. 12901 et seq. of the Cranston-Gonzalez National Affordable Housing Act (Housing for persons with HIV/Aids);

The program under 42 U.S.C. 11360 et seq. of the McKinney-Vento Homeless Assistance Act;

The program under 42 U.S. C. 12741 et seq. of the Cranston-Gonzalez National Affordable Housing Act;

The mortgage insurance program of 12 U.S.C. 1715l(d)(3) and (5);

The program under 12 U.S.C. 1715z-1 (Rental and cooperative housing for lower income families);

The program under 42 U.S.C. 1437(d) and (f) (Low income housing assistance, a/k/a Section 8 Housing);

Rural housing assistance provided under 42 U.S.C. 1484 (Insurance of loans for housing and related facilities for domestic farm labor), 1485 (elderly and low-income housing), 1486 (Financial assistance to provide low-rent housing for domestic farm labor), 1490m (Housing preservation grants) and 1490p-2 (Loan guarantees for multi-family rental housing in rural areas); and

The low-income housing tax credit under 26 U.S.C. 42.

(See 42 U.S.C. 1490r for the provisions of the rural housing voucher program.)

Federally Backed Mortgage Loan

A “federally backed mortgage loan” includes any loan, other than a temporary loan, secured by residential property, including condominiums and cooperatives, designed for occupancy by 1 to 4 families, and that is “made…or insured, guaranteed, supplemented, or assisted in any way, by any officer or agency of the Federal Government or…in connection with a housing or urban development program administered by the Secretary of Housing and Urban Development or a housing…program administered by any other such officer or agency, or is purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.” 15 U.S.C 9058(a)(4).

Federally Backed Multifamily Mortgage Loan

A “federally backed multifamily mortgage loan” includes any loan, other than temporary financing, that is secured by residential multifamily property designed for occupancy by 5 or more families and, like a federally backed mortgage loan, is “made…or insured, guaranteed, supplemented, or assisted in any way, by any officer or agency of the Federal Government or…in connection with a housing or urban development program administered by the Secretary of Housing and Urban Development or a housing…program administered by any other such officer or agency, or is purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.” 15 U.S.C 9058(a)(5).

Finally, Congress is enacting legislation every few weeks in response to the economic shutdown. As such, future legislation might amend the act or create new restrictions on landlords of covered property. For example, the Heroes Act passed by the U.S. House of Representatives on May 15, 2020, extends by 12 months the moratorium on evictions from covered property. (As of May 18, 2020, the HEROES Act has not been enacted into law.) Therefore, all landlords with delinquent tenants should stay informed of new laws that might affect their right to recover possession of their property.

This article is provided for general informational purposes only and should not be solely relied upon in determining whether, and the extent to which, the CARES Act might apply to you. Please contact us, or your attorney, if you have questions about how the eviction restrictions of the CARES Act might apply to your circumstances.

Sewell Law provides legal services in the areas of litigation, real estate, and business, including landlord/tenant matters. Please contact Michael Sewell at (314) 942-3232 or at michael@sewelllaw.net to discuss this or any other legal matter.

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