In this post in late October I let you know that a Legal Aid attorney filed a motion in one of my eviction cases arguing that the CARES Act is still alive and requires certain housing providers to give 30-day notices.
Since then, two Fayette District Court judges have ruled that the CARES Act does NOT apply and seven-day notices to pay or vacate are acceptable. However, on January 26, one of the five Fayette District Court judges ruled differently, holding that the CARES Act still requires 30-day notices to pay or vacate.
So, as of January 30, here’s where things stand in Lexington: Two judges have ruled that seven-day notices are acceptable, one has ruled that 30-day notices are required, and the two others have not yet addressed the issue (but that could change any day).
For a refresher, the CARES Act covers any property that (1) has a federally backed mortgage, such as with Fannie Mae, Freddie Mac, or the FHA or (2) receives federal assistance, subsidies, or tax credits of any kind, including Section 8 vouchers. In the case of vouchers, it only applies to the individual unit that receives the voucher, not the entire community.
HUD maintains a database with a search tool where you can look to see if your property has a federally backed mortgage - click here to view it. Freddie Mac’s databased can be found here. Fannie Mae’s database can be found here.
So, if your property is covered, you have a decision to make. You can continue giving seven-day notices and hope that your cases doesn’t end up with a judge that believes the CARES Act still applies, or you can take the issue off the table and give 30-day notices to pay or vacate.
Ultimately, this issue will be resolved by either the Kentucky Court of Appeals or the Kentucky Supreme Court, but I expect it will be several months before that happens.
Until then, check to see if your property is covered, then choose your path. If you have any questions, feel free to reach out to me at email@example.com.
As always, if you need a lease package, I have you covered. Send me an email and you can review it prior to purchase.