What Can H.R. 802 Do For Charlotte Citizens?

The pandemic hit every industry and turned America's economy upside down. There were little to no handouts for food and beverage, hospitality, transportation, and dozens of other industries. Yet the rental housing industry was expected to allow non-rent paying residents to live on site. With the life-threatening health crisis presented by the pandemic, that made sense for a season. The Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 was passed, and its impact on the rental housing industry is still felt by owners/operators nationwide. "The continued use of the CARES Act has a negative impact on staffing with its indirect increase in workload for both office and maintenance," said one Charlotte-based Property Manager.

While it started in response to economic uncertainty amid the pandemic and lockdowns, the 30-day notice to vacate requirement far exceeded the 30-day time frame. Another Charlotte-based Property Manager said, "The CARES Act started with great intention; however, in housing, it is a burden on owners/operators. Moreover, in Mecklenburg County, what was pre-Covid, a 30–45-day max eviction process is now anywhere from 30 days to 8+months long, resulting in unprecedented tenant debts and higher than normal financial loss. Due to the CARES Act on the operations side, every eviction filed has resulted in an appeal that either the tenant does not appear for or they vacate the unit prior to the court date; the CARES Act has become a crutch that tenants are using to "buy time" leaving the owner/operator to pick up the tab." The CARES Act has enabled non-rent paying residents to substantially overstay their lease, resulting in massive financial burdens for the owner/operator. Once a resident stops paying rent, the owner/operator must cover the expenses elsewhere, usually by increasing rent for the other residents. It's nearly impossible for owners/operators to keep rental costs down with non-rent paying residents staying for months on end.

Is there an end in sight? Thankfully, the introduction of Respect State Housing Laws Act- H.R. 802 would eliminate the 30-day period rental property owners must give residents before they can begin eviction proceedings. Congressman Barry Loudermilk (R-GA) introduced H.R. 802, and U.S. Senators Marco Rubio (R-FL) and Bill Hagerty (R-TN) introduced companion legislation in the Senate. This federal legislation would eliminate the federal requirement and allow states to determine their housing guidelines. If policymakers want lower rent prices for everyone, they must eliminate an unnecessary COVID-era expense that rental housing providers still struggle with.