More than 1,500 US property owners are pursuing compensation from the federal government over the financial losses they suffered during the pandemic-era eviction moratorium, with settlement talks now under way. The plaintiffs, including landlords who lost over $1 million each, argue that the Centers for Disease Control and Prevention (CDC) order violated the Fifth Amendment by denying them compensation for the use of their property.
The moratorium, which lasted from September 2020 to July 2021, cost the industry an estimated $57 billion, according to the lawsuit. Landlords hope to recoup as much as $1.5 billion (£1.2 billion) through a settlement with the Justice Department. The case is pending in the Court of Federal Claims after an appeal victory.
Matthew Haines, a plaintiff who owns three rental communities in Texas, said the moratorium cost him and his investors over $1 million. “It’s important for us to stand up when a group like the CDC unilaterally, functionally, decides that they have a right to oversee our business,” he said. The Justice Department declined to comment on the ongoing litigation.
Landlords report that the ban forced them into debt, layoffs, and delayed repairs, with many selling properties. A survey by the National Rental Home Council found that a third of small landlords sold or planned to sell after the moratorium ended. Tenant advocates argue the measure kept millions housed and slowed the spread of coronavirus, noting that billions in rental assistance were already provided.
