C.A.R. has created a new form to assist property managers in complying with a new federal rule issued by the Consumer Financial Protection Bureau (CFPB).
Effective May 3, 2021, the CFPB rule requires attorneys and agents of landlords or owners of residential property (“debt collectors”) to provide written notice to tenants of their rights under the federal Center for Disease Control (CDC) eviction moratorium.
Previously, no notice of the CDC eviction moratorium was required to be given to a tenant. Now, in certain circumstances, it is.
The name of the new form is “CFPB Disclosure of Potential Eviction Protections” (Form CFPB) and is bundled with the following C.A.R. forms:
Anytime any of these forms are used, the new CFPB form will automatically be included.
Under the CFPB rule, attorneys and agents, seeking to evict tenants for non-payment of rent, must provide tenants who may have rights under the CDC order with clear and conspicuous written notice of those rights. The notice must be provided on the same date as the termination notice, for example, the notice must be provided at the time a notice to pay rent or quit is given.
A federal judge vacates the national CDC eviction moratorium
A federal judge this week struck down the CDC moratorium on evictions enacted by Congress last spring and extended by President Biden until June 30. Regardless of the enforceability of the federal CDC order, California’s own rent moratorium laws will protect most tenants from eviction based upon non-payment of rent. California state courts have discretion to follow this ruling and may choose to disregard the CDC eviction moratorium. See the NY Times article: “Judge Vacates National Eviction Freeze.”
Given this new decision, why then is the new CFPB form necessary? The reason is that a federal district court decision, even one as far-reaching as this most recent one, is not binding authority on a California state court. It is merely influential authority which may be considered but need not be followed. In any event, the ruling is technically stayed at this moment. Finally, the ruling is already being appealed, and the outcome of that appeal is of course unknown. So conservative risk management dictates that the new notice to tenants of their rights under the CDC Order be provided.
Keep in mind, even without the CDC eviction moratorium, California tenants are protected from most evictions for non-payment of rent or other monetary obligations based upon California’s own strongly protective rent moratorium laws. Other local eviction moratoriums may also apply to protect tenants from eviction.
| Read on car.org >
| See C.A.R.’s Q&A “Eviction Moratorium Extension and State Rental Assistance Program — SB 91” >
| See the CFPB’s news release clarifying tenants can hold debt collectors accountable for illegal evictions >