North Palm Beach Today

WASHINGTON, D.C. – Today, Congresswoman Sheila Cherfilus-McCormick (D-FL-20) introduced the Federal Disaster Housing Stability Act of 2023 to protect renters and homeowners during times of national disaster. The bill seeks to prevent evictions and foreclosures for individuals and families who may be facing economic hardship due to a disaster as determined by the President.

“Americans affected by natural disasters should not have to worry about losing their homes and becoming homeless as they work to rebuild their lives,” said Congresswoman Cherfilus-McCormick. “The historic flooding that hit the heart of Florida's 20th Congressional District in April 2023 was a reminder that we must be proactive about protecting the financial security of American families confronting the climate crisis. This bill is about providing a safety net for our citizens who need it most, and it’s about protecting families from being forced to start over when they are at their most vulnerable.”

The Federal Disaster Housing Stability Act of 2023 would provide a 120-day moratorium on evictions for nonpayment of rent or other fees, including late fees, during a national disaster. During this time, landlords, lessors, and owners cannot issue a notice or require a tenant to vacate the property, nor can they increase the cost of rent. In addition, the bill includes a foreclosure moratorium that would prevent foreclosures on mortgages for six months, once the moratorium is declared. The foreclosure moratorium would prevent servicers of a covered mortgage loan from initiating any judicial or non-judicial foreclosure proceedings, scheduling a foreclosure sale, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale.

“When disasters strike, they not only damage homes and displace residents but also create financial challenges from closed businesses and the need for temporary housing,” said Alys Cohen, senior attorney at the National Consumer Law Center. “While disasters mean higher homeowner expenses and often decreased income, homeowners do not automatically receive protections from foreclosure in the immediate aftermath. The Federal Disaster Housing Stability Act from Congresswoman Cherfilus-McCormick will protect homeowners and renters after a disaster and prevent unnecessary foreclosures that would otherwise exacerbate the risk of blight and displacement.”

“Disasters that damage or destroy homes create acute affordability challenges in communities already experiencing a severe shortage of affordable housing, further squeezing the lowest income or newly displaced families,” said Diane Yentel, president and CEO of the National Low Income Housing Coalition. “Unscrupulous landlords exploit this crisis by dramatically increasing rents or evicting tenants from their homes so that they can charge higher rents to the next household, leading to even more housing instability and, in worst cases, homelessness. Congress should enact the Federal Disaster Housing Stability Act introduced by Congresswoman Cherfilus-McCormick to help keep renters stably housed after a disaster and to stop landlords from displacing low-income households through rent gouging.”

Federal Disaster Housing Stability Act Summary:

• The Federal Disaster Housing Stability Act seeks to prevent evictions and foreclosures for individuals and families facing economic hardship during a national disaster.
• The bill provides a 120-day moratorium on evictions for nonpayment of rent or other fees during a national disaster.
• The bill includes a foreclosure moratorium that would prevent foreclosures on mortgages for six months once the moratorium is declared.

Original source can be found here.