New HUD Guidance on CARES Act Notices

THE CARES ACT - RESURRECTED? 

In my March 1 update, I told you about a new rule issued by the Kentucky Supreme Court that allowed evictions throughout the state to move forward as of April 1 without regard to the CARES Act. Verification Forms are no longer required and the Court made no mention of issuing 30-day notices at CARES Act properties.  

Based on that development, my advice was that CARES Act properties no longer have to issue 30-day notices in Kentucky. However, HUD has apparently gotten wind that numerous states are doing away with the 30-day notice requirement, so they issued updated guidance earlier today stating that the duty to give 30-day notices at CARES Act properties is ongoing even though the CARES Act has expired. Here’s a link to HUD’s statement. Here are their exact words, which were added on April 26, 2021:

So, do with that what you will. HUD’s position is that you must still issue 30-day notices to pay or vacate if your property is covered by the CARES Act. Their interpretation of the CARES Act does not carry the force of law, but it does tell you how they view the law and, potentially, how they will litigate matters that fall under the law. 

So, if you want to go the safest route, you issue 30-day notices to pay or vacate if you’re a CARES Act property. If you don’t mind some risk, give your usual notice.

RENTAL ASSISTANCE 

I know there are a few people frustrated with the rental assistance process, but I’m glad to report that $2,000,000.00 in rental assistance has been paid to landlords in Lexington. I haven’t heard the numbers for the rest of the state, but I’ve seen funds being paid out there as well. 

That’s it for today. Have a fantastic weekend. You can reach me at (859) 685-0035 or at smarshall@tripleslaw.com if you have questions or need help with anything.