CARES ACT Now Requires a 30 Day Notice For All Federally Subsidized Housing, Mortgages or Units

As we all continue to try to best navigate the post HSTPA and post Covid world, we are confronted with a new issue being created by the Courts and Legal Service Providers. As I am sure you are all aware, the Cares Act temporarily put a moratorium on evictions during Covid.  HSTPA placed a fourteen (14) day notice requirement on Rent Demands.   

The Cares Act defines housing accommodations which are covered by the Cares Act include multifamily dwellings which are financed by federally backed mortgages and/or housing accommodations where tenants receive Federal subsidies such as Section 8. 

The Cares Act required and still does require any notice to vacate a housing accommodation must be for no less than thirty (30) days.  Federal law preempts and controls over State law. This means, that Rent Demands for premises which are covered by the Cares Act must be for thirty (30) days, rather than fourteen (14) days due to the fact that a Rent Demand does contain language about vacating the apartment or housing accommodation if the rent is not paid.  

Recently, Courts have been rejecting warrants and/or dismissing cases where only a Fourteen (14) Day Rent Demand was served rather than a Thirty (30) Day Rent Demand tenants covered by the Cares Act. Therefore, advising our clients to inform us on all new cases as to whether or not a tenant has a Federal subsidy of any sort such as Section 8, or if the building in which the tenant is residing has a federally subsidized mortgage. Many HDFC’s or premises subject to Regulatory Agreements with DHPD or DHCR participate in or benefit from federally subsidized mortgages.  

We will utilize Thirty (30) Day Rent Demands for any such premises going forward until / unless the lower Court actions are challenged or overturned.  As such, it is of our opinion that:

IF YOU FAIL TO NOTIFY YOUR ATTORNEY AS TO THE PROPER OWNERSHIP STATUS OF FUNDING BE DISMISSED IF IT IS DISCOVERED THAT YOUR TENANT IS SECTION 8, HUD HOUSING, OR HAS A FANNIE MAE BACKED MORTGAGE AND YOU FAIL TO PROVIDE A 30 DAY NOTICE YOUR ACTION MAY BE DISMISSED.

If you have any questions please contact us at INFO@SDKHLAW.COM