Best Practices for Properties Under the CARES Act

January 18, 2024

Under the CARES Act, any housing provider that received federal loan guarantees, such as a private mortgage backed by FNMA or FHLMC, or federal funds, such as housing vouchers, federal loans, or Section 8, must give any resident in their properties 30 days notice before being able to start any unlawful detainer or eviction process.

On January 9th, Division II of the Court of Appeals of the State of Washington found that a writ of restitution was wrongfully issued because a provider of public housing did not comply with CARES Act notice requirements when serving notices in this unlawful detainer case even though the unlawful detainer case was not started in connection with non-payment of rent. The unlawful detainer case was started because of material breaches in the terms of the resident's lease. The court ruled that the HUD's 30-day notice rules apply beyond late rent cases.

However, another case heard in Division I of the Court of Appeals has ruled that the CARES Act applies only to non-payment of rent cases. This means that unlawful detainer cases that are subject to the CARES Act will be handled differently between courts located in Washington State's Division I and Division II until the differences in the rulings can be reconciled.

Please visit HUD's Multifamily Housing Property Search database to check if your property has received federal loans, federal vouchers, or other federal funding. All Washington properties found in this database fall under the provisions of the CARES Act. Check the Court of Appeals Divisions of Washington map to find which jurisdiction your property falls under.

As of January 17th, 2024, LandlordSolutions and our attorneys recommend managers and owners of any properties that have received federal funds or federal loan guarantees in counties of Division II of the court of appeals to issue 30-day notices for unlawful detainer cases in connection with all unlawful detainer cases, not just those cases that deal with non-payment of rent. Please contact your legal counsel for additional details, such as the required CARES Act notice language that must appear on any 30-day notice to a CARES Act property.

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LandlordSolutions does not provide legal advice. The information we provide is general information for landlords. If you need legal advice or have questions about the application of the law in a particular matter, you should consult a lawyer.

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