Landlords Say Michigan’s Eviction-Prevention Plan Lacking
Governor Gretchen Whitmer issued an executive order on March 20 temporarily halting evictions for nonpayment of rent through April 17. The order allowed tenants and mobile home owners to remain in their homes and allowed courts to delay eviction-related proceedings. Then Governor Whitmer extended the eviction moratorium through June 30, now her latest order extends the plan until July 15. Many have lost their jobs as businesses have closed in Michigan during the pandemic.
The good news is the majority are paying their rent on time. But those who do not have the ability, are making life tough on property owners, because most of them have mortgages and expenses to pay too. According to the National Multifamily Housing Council, a Washington-based trade association for the apartment industry, 92.2 percent of apartment renters nationwide had paid all or a portion of their June rent as of June 20, precisely the same amount that had paid as of June 20, 2019. The Governors Eviction Diversion Program is meant to shore up property owners and prevent evictions during the pandemic. But property owners are saying the fund is not enough to cover unpaid rent added through the pandemic.
According to Crain's Detroit the lump-sum funding through the federal CARES Act will be paid out through the Department of Labor and Economic Opportunity if property owners commit to keeping tenants in their homes and forgiving late fees and some of the past-due balances. The program begins July 16. If the back-due rent is not fully covered by the program, payment plans will be reached.