CDC Extends Eviction Ban to June 30

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Renters are getting a bit more of a lifeline during the pandemic.

Many Americans have been dealing with income loss since the start of the pandemic, and it's caused a lot of tenants to fall behind on their rent. Normally, when tenants fail to pay rent, their landlords have the right to initiate the eviction process. But early on in the pandemic, the Centers for Disease Control and Prevention (CDC) put a ban on evictions in place to prevent a widespread homelessness crisis.

That ban was set to expire at the end of March. But the CDC has decided to extend that moratorium until the end of June, buying tenants a bit more of a reprieve.

Renters need relief

About 20% of adult renters didn't pay last month's rent, as per the U.S. Census Bureau. And when we look at the jobless rate, that makes sense.

In February, U.S. employment sat at 6.2%. Prior to the pandemic, it was at 3.5%. Though the economy is in a much better place than it was back in April of 2020, when unemployment reached a record high, many people are still a long way off from a personal recovery. If you've recently lost your job and need help, our state-by-state guide explaining how to apply for unemployment can help.

Extending the current eviction ban helps to ease one major burden for a lot of people. It also prevents many Americans from becoming homeless -- a scenario that will only hinder efforts to get the coronavirus outbreak under control.

What about landlords?

But while eviction moratoriums are a huge help for struggling tenants, it's hard to overlook the fact that they're a source of financial pain for mom-and-pop landlords. These individuals make a living collecting rent and don't have the same financial resources as large property management companies who can go months on end without any revenue.

The good news is that the recently-signed $1.9 trillion coronavirus relief bill does include $45 billion in rental assistance. Those who are eligible for aid may be entitled to 12 to 18 months of rent -- payments that should, in most cases, go directly to the landlords who are due that money.

Will stimulus funds help?

The IRS has, in the past couple of weeks, distributed millions of stimulus payments that could help some people catch up on missed rent payments or cover upcoming rent. But while stimulus funds have already hit a lot of bank accounts, many recipients are still waiting on their money -- namely, those who are waiting on a check or debit card in the mail.

Furthermore, while the current $1,400 stimulus round is the largest to date, for tenants who owe their landlords a year's worth of rent, $1,400 is really just a drop in the bucket. It therefore makes sense that the eviction ban will remain in place until the end of June -- even if that hurts some smaller landlords along the way.

To find more resources to help cover your bills, check out our information on what to do if you can't pay all your monthly bills.

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