How the Federal Moratorium on Eviction Will Affect Michigan Landlords and Property Owners

federal_eviction_mortoriumMichigan landlords and property managers are feeling the economic impact of the COVID-19 emergency. An executive order by Governor Whitmer bars access to state courts for eviction proceedings and prohibits landlords from issuing notices to quit for non-payment of rent while the order is pending.

Although the governor’s executive order is intended to remain in effect until at least May 15, 2020, a provision in the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act may extend her mandate.

Subsection 4024 of the CARES Act established a moratorium on all eviction actions until July 25, 2020, for all properties that either receive direct federal funding (i.e., Rural Development or Section 8 Housing) or which were purchased or financed (other than temporarily for construction) under any federal program. The moratorium includes federally-backed mortgage loans, so loans for properties backed by Freddie Mac or Fannie Mae (including individual family unit homes and student housing) are subject to the freeze.

A Michigan Supreme Court Administrative Order issued on April 16, 2020, allows all landlords and property managers to proceed with evictions after May 15, 2020, only if they file a verification form with their complaint that declares them exempt from the CARES Act. Property owners and managers should check with their financial institutions to determine if mortgages include any backing from the federal government because they may only proceed with an eviction if there is no such backing. The verification can be completed and downloaded here.

Talk to an Attorney Experienced in Landlord-Tenant Matters

If you are thinking about evicting a tenant, please contact Kreis Enderle attorney Robb Krueger to discuss your situation and how to prepare eviction filings. The firm remains open during the COVID-19 outbreak, and we are working remotely and utilizing phone and video conferencing to communicate with clients.

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