Executive Order Directs Agencies to Consider Ways to Prevent Evictions, Foreclosures
On August 8, President Trump issued an Executive Order (E.O.) to address COVID-19-related challenges for renters and homeowners. The E.O. directs a number of federal agencies, including the Department of Housing and Urban Development (HUD) and the Department of Treasury, to consider actions to prevent eviction and foreclosure. However, it does not include specific policy changes.
The E.O. directs the Department of Health and Human Services and the Centers for Disease Control and Prevention to consider whether an eviction ban is needed. It also directs the Federal Housing Finance Agency, in consultation with Treasury, to review existing authorities that can be used to prevent evictions and foreclosures.
Further, it requires the Secretaries of Treasury and HUD to identify any available federal funds that could be used to provide temporary financial assistance to renters or homeowners suffering financial hardships because of the pandemic. However, it does not provide any additional funding for assistance or redirect funds from any other source to be used for rental or mortgage help.
The E.O. also instructs HUD to take action to promote avoidance of eviction or foreclosure. These actions may include providing assistance to and encouraging public housing authorities, landlords, and other HUD grantees to minimize evictions and foreclosures.
While the CARES Act’s 120-day eviction moratorium for most federally assisted housing expired on July 24, foreclosure and eviction moratoriums remain in place for Fannie Mae, Freddie Mac, Federal Housing Administration, and Veterans Affairs loans through August 31.