What Renters Need to Know About the End of the Eviction Moratorium

Renters can only take advantage of the moratorium if they can prove they are unable to pay rent because of the pandemic, either because they lost their jobs or have extraordinary out-of-pocket medical expenses. They may also take advantage of the moratorium if they felt that losing their home will result in homelessness or placement in a homeless shelter. In addition, the eviction moratorium covers only those who expect to earn no more than $99,000 in 2021 (or $198,000 if married and filing jointly).

The moratorium does not keep rent from accruing, nor does it prevent landlords from evicting tenants for other reasons, such as damaging property or fighting with neighbors. Those who take advantage of the order must prove that they are making their best efforts to make timely partial payments. (Homeowners also have extended relief available from lenders and loan servicers.) 

What relief is available?

Some states and cities have extended the eviction moratorium. Maryland and the District of Columbia base their extension through the end of the national emergency period, and New Jersey's lasts for two months after the end of the emergency period. Several federal agencies announced extensions through September 30th, 2021 of eviction and foreclosure moratoriums for residents of properties financed or guaranteed by the U.S. government, including publicly-funded housing units, and those financed by Federal Housing Authority and Veterans Affairs loans or loans securitized by Fannie Mae or Freddie Mac.

The largest chunk of aid comes from the federal government, which approved $25 billion in emergency rental assistance (ERA) through the Consolidated Appropriations Act of 2021, enacted in December. Another $21.55 billion came from the American Rescue Plan Act, enacted in March 2021, which also allowed funds to be used for moving and other expenses. The money is disbursed according to a state's share of the national population. The assistance can last 12 months, with the possibility of one three-month extension.

State and local agencies are distributing the money, and many of these agencies, the Treasury Department says, are just getting up and running. Less than 10 percent of the money approved by Congress has been paid out, according to The Wall Street Journal. “While some state and local programs are increasingly reaching households in need, others lag far behind, and many programs have just launched in recent weeks,” Treasury said in a July 2 statement. 

How to get aid

The first step is finding a state or local agency that can help you. One of the most comprehensive directories is maintained by NLIHC, which promises users are just two or three clicks away from an application. Alabama, for example, has eight agencies distributing rental assistance, which includes a statewide agency, several county agencies and one for the Choctaw tribe.

You'll need documentation to prove that you have lost your job or had your income reduced because of the COVID-19 pandemic. You'll also need to prove that your income is within the limits set by Congress. Agencies may be flexible as to the particular form of documentation they require, including permitting photocopies or digital photographs of documents, emails, or attestations from employers, landlords, caseworkers, or others with knowledge of your household's circumstances.

You may also have to get your landlord to agree to the terms of the rental assistance, which may include agreeing not to raise the rent or evict you for a certain period of time. If your landlord objects, you should see if you can get the funds directly, which is now easier than when the program was first authorized. And if you're a landlord waiting for back rent, you can also apply to get help from the government under the ERA program. AARP has strongly supported both landlords and tenants to ensure that all interests are considered in these national efforts to keep people housed.

You will still be eligible to get aid if you turn in your application at the last minute. But don't do that. If you miss the deadline, you simply may not get the aid.

John Waggoner covers all things financial for AARP, from budgeting and taxes to retirement planning and Social Security. Previously he was a reporter for Kiplinger's Personal Finance and USA Today and has written books on investing and the 2008 financial crisis. Waggoner's USA Today investing column ran in dozens of newspapers for 25 years.