Client Alerts, News Articles & Blog Posts

Everything you need to know about BMD and the industry.

Landlord Alert: CDC Issues Temporary Halt in Residential Evictions

On September 1 the Centers for Disease Control and Prevention (“CDC”) issued a nationwide temporary halt on all residential evictions through December 31, 2020.  With the July 24, 2020 expiration of the prior moratorium established under the CARES Act, the CDC based the new moratorium on the need to protect public health and the likely increase in the spread of COVID-19 if mass evictions take place.

Under the CDC’s Order, “a landlord, owner of a residential property, or other person with a legal right to pursue eviction or possessory action, shall not evict any covered person from any residential property in any jurisdiction to which this Order applies ***.”  Tenants facing the prospect of eviction and wishing to invoke the moratorium must provide the landlord with a signed declaration containing specific sworn statements including:

  • The tenant has used best efforts to obtain all available government assistance for rent or housing.
  • The tenant expects to earn no more than $99,000 in calendar year 2020 (or $198,000 for joint tax filers).
  • The tenant is unable to pay the full rent due to substantial loss of household income.
  • The tenant is using best efforts to make partial rent payments.
  • Eviction would likely render the tenant homeless.

While the CDC’s Order broadly defines what constitutes a residential property and is intended to halt all efforts to remove a tenant for failing to pay rent until the end of the year, it does not relieve the obligation to pay rent or to comply with any other lease obligations. Thus, the Order does not preclude evictions based on criminal conduct, health and safety concerns of other residents, violations of applicable health ordinances and building codes, or the violation of other lease obligations that do not include the timely payment of rent.

Landlords need to be mindful of the CDC Order and seek legal counsel if contemplating eviction between now and the end of the year. Penalties for not complying are steep for an individual and include (i) fines of up to $100,000 if the violation does not result in a death, (ii) fines of up to $250,000 if the violation results in a death, (iii) and can in addition include one year in jail. Penalties for an organization violating the CDC Order similarly are based on whether the violation resulted in a death and can climb as high as $500,000 per violation.

For questions for more information, please contact Member Blake R. Gerney at brgerney@bmdllc.com, or your primary BMD attorney.

Vaccination Considerations for Employers

Today, three Covid-19 vaccines have tested as highly effective (90%+ efficacy) and are advancing in the process for emergency use. This is especially welcome news in Ohio, which has skyrocketing cases and our strategic response has been to turn the entire state into the small town of Bomont with strict curfews and bans on social gatherings.

Did You Receive More than $750,000 in Provider Relief Funds?

The Provider Relief Funds (“PRF”) - authorized under the CARES Act - has been a vital tool for health care providers during the COVID-19 public health emergency. These funds have allowed providers to stay open and continue to offer care during these pressing times. While helpful, these funds do come with several important obligations. First, fund recipients are required to comply with certain record-keeping requirements as well as comply with certain balance billing prohibitions. See our Client Alert. Second, fund recipients are required to report their intent, use of funds, and other data elements, which helps promote transparency to the federal government. Please see our Client Alert on provider relief fund reporting requirements. Third, and perhaps a new concept for many providers, fund recipients of more than $750,000 must undergo a “single audit” to ensure program compliance and appropriate use of funds.

Important Updates Every Provider Should Know: Information Blocking

In December 2016, Congress passed the 21st Century Cures Act (“Cures Act”) which: (1) authorized funding for the National Institutes of Health to promote medical research and drug development, (2) implemented provisions aimed at addressing the prevention and treatment of mental illness and substance abuse, and (3) reformed certain standards of the Medicare program and federal tax laws to foster healthcare access and quality improvement.

PPP Update: Loan Necessity Questionnaires

On October 26, 2020, the Small Business Administration (“SBA”) published a notice in the Federal Register which foreshadowed the release of two new forms seeking information from for-profit and nonprofit organizations that received Paycheck Protection Program (“PPP”) loans of $2 million or more. If approved, the SBA would use information from these forms to evaluate and determine whether economic uncertainty made a PPP loan request necessary.

Exposure to COVID-19 Flow Chart

Exposure to COVID-19 Flow Chart