In late June, 2020 the CDC issued a moratorium on evictions for renters who failed to pay in a timely manner.  The policy made some sense.  If people were forced to reduce their incomes, then they shouldn’t suffer resulting pinch.  Also, the CDC didn’t want a bunch of people thrown out of their apartments during a pandemic.  https://www.cdc.gov/coronavirus/2019-ncov/more/pdf/CDC_Eviction_Extension_Order_Final_06242021.pdf
 

The moratorium was extended, litigated, and the Supreme Court decided that the CDC moratorium exceeded its authority.  But since the moratorium was set to expire soon thereafter, and in light of the fact that Congress had apportioned $43Billion to help delinquent renters, the Court didn’t cancel the program immediately. https://www.supremecourt.gov/opinions/20pdf/20a169_4f15.pdf

Congress enacted the Emergency Federal Assistance Program in May or June, 2021 to help renters pay their rental arrears.  https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program

I don’t know how it is going in any other State, but NY tied some ropes to the money. FIRST, NY recognized that paying the money to tenants directly probably isn’t a good idea.  Households received weekly unemployment boosters and lump sum checks for the past 15 months or so.  Nobody is sure why delinquent tenants didn’t pay that money to landlords. At least NYS seems puzzled by this fact, too.  SECOND, NY stuck it to landlords (because they can’t seem to help themselves).  (1) if landlords don’t take the rent arrears then they can’t evict for past due sums; (2) if landlords do take the money then they can’t evict for 12 months into the future.  Another likely screw job for landlords thanks to the NYS government.  https://otda.ny.gov/programs/emergency-rental-assistance/
 

In spite of all the headlines, the delinquency rates (while bad) are not as bad as being reported.  This is the only article I can find (I’m hoping the data in it is correct). It reports that there’s a 1.6% decrease in rent payments that are late but made by the end of the month. That translates to 710,000 units nationwide. That’s a LOT of people affected — tenants and landlords alike. https://wolfstreet.com/2020/12/08/how-many-renters-face-eviction-when-eviction-bans-end-how-much-worse-is-it-compared-to-the-good-times/

Everyone knew about this likely problem for over a year.  There was always going to be a “**** you, pay me” moment for renters. Yet, assistance was late and comes with strings attached, and the current administration and Congress completely mishandled the situation. Plus, I’m not sure why, but only a fraction of the money has been spent.  Even the Times thinks the situation is a shitshow (they just say it in a more polite way than me).   https://www.nytimes.com/2021/07/31/us/politics/eviction-moratorium-biden-housing-aid.html

I’m not making ANY value judgments regarding tenants, or free money, or landlords.  I just find this current situation to be a great example of where we are as a country.  There’s elements of victimhood for (both tenants and landlords) and a strong whiff of incompetent government responses. 
 

 

 

 

More than ever, this is how things go these days. Yes it is a good idea to help those that truly need it (and there are many), but it seems any type of assistance ends up being bastardized into scams that suck money from the system by people who could be working, and the government doesn't really care. Frankly, I'm surprised NYS has any safeguards built in it at all.

2 hours ago, snafu said:

It reports that there’s a 1.6% decrease in rent payments that are late but made by the end of the month. That translates to 710,000 units nationwide.

 

Good write and thread!

I was wondering where they were coming up with numbers in the millions and it seems you may have gotten more realistic with the 710,000

You hit on the enhanced unemployment, and i think for many if not most people on it they were receiving more than when they were working. But for another large segment of the population that may have been on section 8 subsidies, if they were on welfare as well and couldn't (or wouldn't) work, that was never reduced. But even people on it that did work or work part time, if they has reduced hours, their section 8 subsidies would have been enhanced to reflect that. 

 

So I'm wondering if that 710 were either outliers, situations we know nothing about, or people that just thought they could game the system and are now paying the piper?

41 minutes ago, Cinga said:

 

Good write and thread!

I was wondering where they were coming up with numbers in the millions and it seems you may have gotten more realistic with the 710,000

You hit on the enhanced unemployment, and i think for many if not most people on it they were receiving more than when they were working. But for another large segment of the population that may have been on section 8 subsidies, if they were on welfare as well and couldn't (or wouldn't) work, that was never reduced. But even people on it that did work or work part time, if they has reduced hours, their section 8 subsidies would have been enhanced to reflect that. 

 

So I'm wondering if that 710 were either outliers, situations we know nothing about, or people that just thought they could game the system and are now paying the piper?

Imagine all the extra money flowing into houses with multiple working-age adults who each got a multiple stimulus checks and enhanced unemployment benefits. There are reports that the savings rate is as high as it’s been in decades. Individuals investing “extra” money has inflated stock prices. None of these people are renters?
 

I think your speculation about “gaming” may be the right answer — though by no means do I think it applies across the board.  I believe that a lot of these households will come up with the money when they need to. But they’ll also make whatever deal with their landlord that they can to lessen the amount. 
 

 

7 hours ago, snafu said:

(1) if landlords don’t take the rent arrears then they can’t evict for past due sums; (2) if landlords do take the money then they can’t evict for 12 months into the future.  Another likely screw job for landlords thanks to the NYS government.  https://otda.ny.gov/programs/emergency-rental-assistance/

 

So, if you want your tenet gone, yesterday, you're out whatever they owe you. You take the arrears from .gov, then you have to rent to your existing tenet for another 12 months regardless of their ability to pay rent during that upcoming period. 

 

God do I love NYS.

 

We got lucky and the one tenant who lost her job made up the rent after she found another (better paying) job. Honestly though? This seems like a play to make the little guy sell in order for the big players to move in and sweep up more real estate.  At this point, nothing is a conspiracy theory to me. It simply stinks. 

I had been considering purchasing a property portfolio and I have never been happier about a decisión not to purchase in my life.

15 hours ago, Foxx said:

 

So, if you want your tenet gone, yesterday, you're out whatever they owe you. You take the arrears from .gov, then you have to rent to your existing tenet for another 12 months regardless of their ability to pay rent during that upcoming period. 

 

God do I love NYS.

 

 

Yep.  As @Ann says, this really seems to be a way to squeeze the landlords w/ a handful or less properties out of the game so the institutional investors that have been buying up houses for the rental market can buy them out.

3 hours ago, Taro T said:

 

Yep.  As @Ann says, this really seems to be a way to squeeze the landlords w/ a handful or less properties out of the game so the institutional investors that have been buying up houses for the rental market can buy them out.

And create the world where the little guys own nothing, eat bugs, and are happier?

3 hours ago, Taro T said:

 

Yep.  As @Ann says, this really seems to be a way to squeeze the landlords w/ a handful or less properties out of the game so the institutional investors that have been buying up houses for the rental market can buy them out.

I don’t think the law was written with that in mind. What you describe is more of an opportunity being taken by the big money guys as a result of the legislation. 
 

 

1 hour ago, snafu said:

I don’t think the law was written with that in mind. What you describe is more of an opportunity being taken by the big money guys as a result of the legislation. 
 

 

 

My expectation is that for the most part the politicians writing legislation don't really understand what they're proposing but the special interests "helping" them do understand it.

 

Hope you're right but have become far more cynical the past couple of years.

1 hour ago, Taro T said:

 

My expectation is that for the most part the politicians writing legislation don't really understand what they're proposing but the special interests "helping" them do understand it.

 

Hope you're right but have become far more cynical the past couple of years.

 

You know there is no frigging way these idiots understand the legislation someone else writes for them! Listen to most of them talk and you automatically begin to get dumber yourself!

I have been hearing on the radio quite a bit lately, adverts for a company that wants to buy your rental(s). The advert mentions several scenarios that would be a direct result of the covid anti landlord statutes.

 

Rep. McCaul on House GOP's bombshell Wuhan lab report: 'Greatest cover-up in human history'COVID-19 may have been circulating in Wuhan as early as September, according to report

 

Much of this we knew already, but at least the gubmint is finally looking in to it.

 

3 hours ago, Taro T said:

 

My expectation is that for the most part the politicians writing legislation don't really understand what they're proposing but the special interests "helping" them do understand it.

 

Hope you're right but have become far more cynical the past couple of years.

 

1 hour ago, Cinga said:

 

You know there is no frigging way these idiots understand the legislation someone else writes for them! Listen to most of them talk and you automatically begin to get dumber yourself!

 

Maybe somewhere else, but not in NYS.  Honestly, I think it goes more like this:  progressive NYS politicians (especially downstate politicians) pander to Tenants because there's always more tenants than there are Landlords.  Also, landlords are easy targets because, you know, they're "the Man".  If a special interest group wants to glom onto those basic motivating factors because their preferred outcome will result, then that's great.  But the bottom line is that the deep pocket developers at the end of the day are still "the Man", and the laws that they may have helped pass are not going to benefit them after they buy a property to exploit. I believe that the interest of progressive politicians and deep pocket real estate portfolio-builders are so incompatible that they aren't likely bedfellows in this particular case.

 

1 hour ago, Cinga said:

 

You know there is no frigging way these idiots understand the legislation someone else writes for them! Listen to most of them talk and you automatically begin to get dumber yourself!

if you put rental properties on Guam, will it tip over

On the path towards a nation of renters

 

But what of the property owners?  American Dekulakization

2 hours ago, Spartacus said:

if you put rental properties on Guam, will it tip over

Of course it will, to the side the rich people are on because of the weight of all that money 

Supreme Court Shupreme Court, amirite?

 

https://www.reuters.com/world/us/biden-announce-new-eviction-moratorium-new-york-times-2021-08-03/

 

1 hour ago, snafu said:

Supreme Court Shupreme Court, amirite?

 

https://www.reuters.com/world/us/biden-announce-new-eviction-moratorium-new-york-times-2021-08-03/

 

Kavanaugh and his stupid, “yeah it’s illegal, but it ends soon.” Realtors need to sue again for a real ruling.