DeSantis Extends Eviction & Foreclosure Ban to Aug. 1

Fla.’s governor extended the ban on evictions and foreclosures only hours before a scheduled restart. It’s the third extension for a ban first announced on April 2.

TALLAHASSEE, Fla. – On Thursday, April 2, Florida Gov. Ron DeSantis signed Executive Order 20-94 effectively halting evictions and foreclosures in the state for 45 days.

Since that time, the ban has been extended three times, with the latest one issued Tuesday evening, just hours before evictions and foreclosures were scheduled to begin again. It follows extensions announced on May 14 and June 1.

Under the original Executive Order that has been extended, DeSantis said he would “suspend and toll any statute” providing for “an eviction cause of action under Florida law solely as it relates to non-payment of rent by residential tenants due to the COVID-19 emergency.”

While the order impacts evictions and foreclosures for 45 days, it does not change Florida law, nor does it relieve tenants or parties to a transaction from their obligations under existing contracts.

The order itself makes that clear, saying, “Nothing in this Executive Order shall be construed as relieving an individual from their obligation to make mortgage payments or rent payments.”

The extension applies to multifamily owners with a Fannie- or Freddie-held mortgage in forbearance. The loans can now be extended if owners agree not to evict tenants.

In addition, the Federal Housing Finance Agency (FHFA) extended a forbearance program for multifamily owners, saying it wants to support them and “help renters in multifamily properties stay in their homes.”

FHFA’s extension applies to multifamily property owners that have a Fannie Mae- or Freddie Mac-held mortgage in forbearance. Under the extension, owners with an existing forbearance agreement can extend it for an additional three months for up to a total of six months.

Qualified properties are ones that experienced a financial hardship due to the coronavirus national emergency. In an extended forbearance, the borrower may receive up to 24 months to make up their missed payments after the forbearance period ends.

FHFA places limitations on multifamily owners while their property is in forbearance, however, including one about evictions. If the forbearance is extended, the schedule modified, or a new forbearance agreement executed, the borrower must provide the following tenant protections during the repayment period:

• Give the tenant at least a 30-day notice to vacate
• Not charge the tenant late fees or penalties for nonpayment of rent
• Allow the tenant flexibility to repay back rent over time and not in a lump sum

“The multifamily mortgage forbearance extension announced today will help renters stay in their homes and help property owners retain their properties,” FHFA Director Mark Calabria says.

FHFA says it will keep monitoring the coronavirus’ impact on renters, borrowers and the mortgage market, suggesting more updated policies are possible.

To understand government protections and assistance, visit the joint Department of Housing and Urban Development, FHFA, and the Consumer Financial Protection Bureau website at cfpb.gov/housing.