As we continuously monitor the evolving local, state, and federal responses, procedures, guidance, and resources, and assistance to address the impacts of the COVID-19 pandemic, we will endeavor to provide you with up to date information on these evolving developments. To that end, on April 10, 2020, Governor Lamont issued Executive Order No. 7X (“EO 7X”) regarding, in part, residential evictions in Connecticut. As you may recall from our previous E-Alert circulated on March 23, 2020, the U.S. Department of Housing and Urban Development (“HUD”) already placed a moratorium on foreclosures and evictions for any property that receives HUD assistance or is financed with a HUD insured mortgage. Governor Lamont’s Executive Order No. 7X now also places a moratorium on most residential evictions until July 1, 2020 in Connecticut.
Below is a summary of Executive Order No. 7X. Further below is summary of the HUD moratorium from our initial E-Alert from March 23, 2020 for your convenience.
We are continuously monitoring these developments and are available to help guide you through any questions or comments you may have.
Executive Order No. 7X Regarding Connecticut Residential Evictions.
On Friday, April 10, 2020, pursuant EO 7X, Governor Lamont effectively suspended all residential evictions through July 1, 2020. EO 7X prevents a residential landlord from serving a notice to quit or a summary process eviction action through July except for a “serious nuisance” as that phrase is defined in the General Statutes. EO 7X also provides sixty (60) day grace periods for a tenant’s obligation to pay April and May rent. Below please find a synopsis of the key provisions of EO 7X as they relate to a residential landlord. A full copy of EO 7X is attached. Please let me know if you have questions or would like to discuss this further.
- No Notice to Quit or Service of Summary Process Action Before July 1. No residential landlord may issue or serve a notice to quit or serve or return a summary process action before July 1, 2020, for any reason except for “serious nuisance” as that phrase is defined in section 47a-15 of the Connecticut General Statutes.
- Automatic 60-Day Grace Period for April Rent. If rent due in April 2020 is unpaid when due and paid within sixty days thereafter, the tenant shall not be in default or violation of the rental agreement and the landlord may not deliver or cause to be delivered a notice to quit or serve or return a summary process action for nonpayment of rent; impose late fees, interest, or penalties; report such rent as late; or otherwise retaliate against the tenant.
- 60-Day Grace Period for May Rent, Upon Written Request. If rent due in May 2020 is unpaid when due and paid within sixty days thereafter by a tenant who, on or before the 9th day after such rent is due, notifies the landlord in writing (including via e-mail), that the tenant needs to delay all or some payment of rent because he or she has become fully or partially unemployed or otherwise sustained a significant loss in revenue or increase in expenses as a result of the COVID-19 pandemic, the tenant shall not be in default or violation of the rental agreement and the landlord may not deliver or cause to be delivered a notice to quit or serve or file a summary process action for nonpayment of such rent; impose late fees, interest, or penalties; report such rent as late; or otherwise retaliate against the tenant.
- Application of Additional Security Deposit to Rent, Upon Written Request. Upon the written request of a tenant who is not enrolled in the security deposit guarantee program established by the Commissioner of Housing pursuant to Section 8-339 of the Connecticut General Statutes, who has paid a security deposit in an amount that exceeds one month’s rent, and who provides written notice, (including via e-mail), that he or she has become fully or partially unemployed or otherwise sustained a significant loss in revenue or increase in expenses as a result of the COVID-19 pandemic, a landlord shall withdraw an amount of said deposit equal to the amount in excess of one month’s rent from an escrow account and apply it toward the rent due in April, May, or June 2020. The amount applied toward the rent due shall no longer be considered an amount of the security deposit for any purpose, including but not limited to the calculation of interest, assignment to successor, and the payment of security deposit and interest at the termination of a tenancy. Notwithstanding subsection (b) of this section, no landlord who has complied with such a request may demand the security deposit be restored to an amount that exceeds one month’s rent earlier than the later of the end of the public health and civil preparedness emergency declared on March 10, 2020, including any period of extension or renewal of such emergency, or the date the rental agreement is extended or renewed.
Nothing in EO 7X relieves a tenant of liability for unpaid rent except as expressly provided for in EO 7X.
U.S. Department of Housing and Urban Development (HUD)
HUD issued a Press Release HUD No. 20-042 on March 18, 2020, in which HUD placed a moratorium on all foreclosures and evictions from FHA-insured single-family properties. Specifically, the order applies to homeowners with FHA-insured Title II Single Family forward and Home Equity Conversion mortgages and tenants occupying FHA-insured single-family properties. The moratorium took effect immediately and will persist for the next 60 days.
Carmody is Here to Help
Additional information and resources are available at the Carmody COVID-19 Resource Center. For guidance and advice on these issues and your particular situations and concerns, please contact one of our real estate attorneys. We will all get through this together. Be safe and stay healthy.