In an important example of the value of membership, NAHB has scored a major victory for all our members nationwide regarding a recent legal ruling that overturns the federal eviction moratorium decision by the Centers for Disease and Control Prevention (CDC).
As a result of this legal decision in favor of NAHB, the CDC eviction moratorium is currently set aside with respect to all NAHB members nationwide. However, the eviction moratorium may still apply to landlords who are not NAHB members. Moreover, NAHB members must still comply with state or local eviction restrictions.
On March 10, NAHB won a key legal decision when the U.S. District Court for the Northern District of Ohio ruled that, by issuing an eviction moratorium, the CDC exceeded the authority granted to it by Congress. NAHB brought the lawsuit as a plaintiff on behalf of its members and we were the only association to do so.
On March 24, the Department of Justice (DOJ) confirmed that the district court’s order applies to all NAHB members across the nation who rent residential properties to covered persons who submitted CDC declarations — not just those who reside in Ohio.
In other words, pending further guidance from the district court or subject to an appeal by the DOJ, the CDC eviction moratorium is currently set aside for all NAHB members.
This distinction – “all NAHB members” – is crucial. The reason the decision was set aside for all NAHB members across the nation and not all landlords is because NAHB was a plaintiff in the case and we had “representational standing.” This means NAHB was acting as a representative of its members who have been impacted by the moratorium. When an association wins a case like this, the decision applies to all its members.
This victory for all NAHB members shows how our association is working on behalf of our entire federation and producing concrete results to help your businesses and our industry.
And while this is an important win, NAHB continues to urge members to seek access to the $46.5 billion of rental funding through the Emergency Rental Assistance Program via your local government and housing authorities. NAHB worked for a year with Congress and two administrations to ensure flexible funding so tenants are able to pay their rent and stay safely housed during the pandemic. Although funds have not been released as quickly as anticipated, NAHB has always stated that the best way to help all parties is through emergency funding and not moratorium mandates.
Finally, recent media reports indicate that the CDC may seek to extend the federal eviction moratorium, which is set to expire on March 31. Given the district court’s ruling on March 10, even if the CDC does take action to extend the eviction moratorium, it should not apply to NAHB members.
For more information on the legal decision, contact Tom Ward, NAHB’s Vice President for Legal Advocacy.