Update (1300ET): White House Press Secretary Jen Psaki confirmed at today’s briefing that Biden’s Justice Department is reviewing the federal judge’s decision, and “should have something to say later today.”
Housing and Urban Development (HUD) Secretary Marcia Fudge also reacted to the ruling at a Wednesday press conference, saying the Biden administration is already taking steps to protect renters under threat of eviction.
“We know we have put enough money in the system through the rescue plan that people should come out of this June 30th, at least currently, and so that in itself is going to allow us hopefully to keep people in their homes, as well as those people who actually have homes through FHA or through the federal government,” she said.
Of course, no one is surprised that the Biden admin would appeal the decision, favoring socialized central control. Additionally, this could be a major roadblock to Biden’s efforts to conjoin the expiration of the moratorium with the distribution of $50 billion in rental assistance.
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A month ago, The Wall Street Journal Editorial Board stated yet another true but unpopular fact: “Continuing government bans on eviction and foreclosure are doing more harm than good.”
The CDC invoked the 1944 Public Health Service Act, which allows the agency to take measures to prevent the spread of communicable diseases between states. People who get evicted might move in with family or friends and spread the disease, the CDC explained. What diktat couldn’t the CDC justify under this expansive rationale?
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In short, the government is bludgeoning private businesses to fix a problem it created.
Suspension of rent and mortgage payments was justifiable last spring when states locked down and some 22 million workers lost jobs. But the jobless rate has dropped to 6% from 14.8%, and employers are desperate to hire.
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Landlords say they increasingly can’t afford their mortgage payments, utilities, and maintenance costs because they can’t remove nonpaying renters.
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These crisis programs are distorting the housing market.
Home values have soared in the past year amid increased demand (see nearby), so some borrowers currently in forbearance could avoid foreclosure by selling. Government forbearance may be contributing to a housing shortage by keeping people in homes they can’t afford and limiting supply for potential buyers.
Two weeks ago, we highlighted the plight of ‘mom and pop’ landlords.
According to Bloomberg, nearly $47 billion in rent relief from the Biden Administration has been slow to materialize, forcing “mom-and-pop” landlords into financial hardship – or forced to sell to wealthy investors. Bloomberg, perhaps to invoke sympathy for the landlord class, focused on the impact felt by minority landlords.- READ MORE
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