Eviction Moratorium Could Protect Millions Of Texans But Foreshadows 'Rough' 2021 For Housing Market
DALLAS (CBSDFW.COM) - Millions of Texans could be protected from evictions as a result of an order from the Trump administration.
The federal government announced a nationwide eviction moratorium through the end of the year.
The order comes from the CDC. with the purpose of preventing the spread of the coronavirus.
This is not a rent forgiveness. Its aim is to keep people in their homes and out of shelters or crowded living conditions that could increase the spread of the virus.
To qualify, tenants must earn less than $99,000 a year, $198,000 if filled jointly. They also must prove they've tried to get government rent assistance, are unable to pay rent because of a loss of work or health expenses, and will likely become homeless if evicted.
"I think there is going to be a lot of struggle with this," said Rachel Khirallah, a Dallas real estate attorney. "The requirements are clear but very subjective. No one knows how this is all going to work. Everyone is flying this airplane and building it at the same time."
Khirallah said while tenants need the protection, landlords, especially ones with fewer properties, will feel the effects of this.
"Several landlords and multi-family associations have already raised voices of concern over this issue," Khirallah said. "It is going to be an economic loss on their end, no question about it."
The other concern shared by both landlords and renters is what happens come January when evictions resume and tenants have several months of rent obligations due.
A recent real estate analysis forecasts a 100% increase in foreclosures next year in North Texas.
"We are going to see a mass number of evictions and a mass number of foreclosures," said Khirallah. "Next year is going to be very rough."