On April 15, the members of the conference committee released its final version of the eviction and foreclosure moratorium bill. The final bill contains strong protections for renters and owners. It prohibits all non-essential evictions for tenants and small businesses, stops foreclosures, and directs financial institutions to grant mortgage forbearances at the request of homeowners. For a summary of the bill, click here.
The bill would put the moratorium into place for 120 days after the effective date of the act or 45 days after the COVID-19 emergency declaration is lifted, whichever is sooner. The bill authorizes the Governor could extend the moratorium in increments of up to 90 days.
The bill prohibits all evictions for residential units and small businesses. The legislation would prohibit notices to quit and both judgments and default judgments for plaintiffs in non-essential eviction cases.
The conference committee added language that authorizes landlords to use a tenant's last month rent for other expenses like taxes, mortgage payments, or operating costs. However, the bill makes clear that if the landlord uses this last month's rent, the tenant won't owe any additional rent payment.
The bill includes language directing financial institutions to grant a mortgage forbearance upon a homeowner's request if the homeowner has been impacted by COVID-19.
The House and Senate must approve the final bill before sending to the Governor for his signature.