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NewsAugust 28, 2021

David Soto of Soto Property Solutions, a property management company in Cape Girardeau, said Friday he is "relieved" the U.S. Supreme Court has stopped a Biden administration order extending a federal eviction moratorium into October. The 6-3 vote, revealed late Thursday, lifts a two-month eviction ban issued by the Centers for Disease Control and Prevention (CDC)...

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David Soto of Soto Property Solutions, a property management company in Cape Girardeau, said Friday he is "relieved" the U.S. Supreme Court has stopped a Biden administration order extending a federal eviction moratorium into October.

The 6-3 vote, revealed late Thursday, lifts a two-month eviction ban issued by the Centers for Disease Control and Prevention (CDC).

Parts of the U.S. experiencing "substantial" and "high" spread of COVID-19 were covered by the August order.

The court's majority said the CDC exceeded its authority.

"Whether the CDC had the authority do this has been the big question from the very beginning," said Soto, whose company manages nearly 600 leased units housing approximately 1,000 renters.

Soto said 80% of his landlord clients have property in Cape Girardeau County, but his firm also manages rental units elsewhere in Southeast Missouri and in the St. Louis area.

"[The ruling] is good news because a very high percentage of landlords are 'mom and pop' shops, meaning people who own one or two rental properties," Soto said, adding he is aware of a case outside Southeast Missouri in which a landlord with five leased units and who had not received rent from her tenants in more than a year ended up losing her own home.

A landlord group, which had argued the CDC had no standing to prohibit evictions, told justices in a legal brief the country's property owners have been losing a reported $19 billion a month in unpaid rent.

A stimulus package approved by Congress in December included $25 billion in rent relief to be distributed to state and local governments.

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"Yes, there are government funds out there for rent and utilities but getting [the money] has not been very easy," Soto contended. "The last figure I saw showed 10 to 20% of that money has been distributed to landlords to address back rent."

Calvin Garner, director of program operations for Community Partnership of Southeast Missouri, with oversight over the not-for-profit's housing coordination, said CPSEMO has helped distribute more than $100,000 in state-provided rental assistance over the last eight months.

"We have seen a significant increase in the number of people needing our help, but we've also seen more who need repeat assistance," said Garner, noting "sustainability" is a particular priority for CPSEMO.

"We try to help people avoid getting back into the same spot again."

In agreement with Soto, Garner said the process for accessing government financial aid for rent is cumbersome.

The Missouri Housing Development Corporation pays up to 12 months of rental arrears, Garner said, but the process is lengthy with a 15-to-20-page application required.

"The tenant and landlord have to gather documentation to show evidence of need, and it must be COVID related. If any of those are missing, the process has to start all over again."

Garner suggested everybody in the rental industry, customer and owner alike, have gotten hurt during the pandemic.

"Obviously, [the high court ruling] is going to impact a significant number of folks and I see both sides of the coin -- renters may be in a desperate situation, but landlords find themselves in a difficult place, too," he said, adding he does not anticipate a significant increase in evictions locally now that the moratorium has been lifted.

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