What does the CARES Act mean to you
The Coronavirus Aid, Relief and Economic Security Act, also known as the CARES Act, was signed into law on March 27, 2020.
The CARES Act is a comprehensive piece of federal legislation. Almost 900 pages, it’s longer than a typical church hymnal.
While we don’t expect everyone to read the CARES Act in its entirety, there is relevant and timely information in the act that will affect families, workers, small businesses and nonprofits across Birmingham. Mayor Woodfin’s staff has been working around the clock to determine what parts of the CARES Act will impact you the most.
For the next week, Mayor Woodfin will provide regular updates to highlight relevant parts of the CARES Act, explain what it means, and tell you where you can get more information and resources.
March 31: Temporary moratorium on eviction filing
- Simply put, any property owner that has received a federal subsidy or has a federally backed mortgage loan CANNOT evict or charge late penalties to any tenants who cannot pay rent. This is effective immediately and will remain effective for a period of 120 days, or approximately until June 27, 2020. In this case, being a tenant applies to both small businesses and residents of homes or apartments.
- If you are a property owner or landlord, and if your property receives federal subsidies – such as public housing, Section 8 assistance, Low Income Housing Tax Credits or if you have property with a mortgage issued or guaranteed by a federal agency including FHA, USDA or Fannie Mae or Freddie Mac – you cannot evict tenants or charge them late fees should they be unable to meet their rent payment over the next 120 days or between now and June 27, 2020.
- If you are a tenant — this does not mean you don’t have to pay your rent. If you are a tenant, and you are able to pay your rent, please do so. But, if you have lost your job or have seen your hours reduced at work as result of the coronavirus, you MAY be able to avoid evictions or late fees on any late or past due rent from now until June 27, 2020 if you are a public housing resident or if you live in a property that receives federal support.
- The CARES Act simply allows you more time to pay your rent over the next 120 days without a financial penalty or the threat of eviction: it does not mean you don’t have to pay rent – there is a difference.
