Eviction moratorium extended: not forgiveness, says Cape company

David Soto of Cape Girardeau-based Soto Property Solutions, a property management company located at 735 Broadway, said Congress's just-approved stimulus package grants a delay, not forgiveness, in paying rent.

The $900 billion stimulus, signed by President Trump one week ago, has a provision to extend the federal eviction moratorium until Jan. 31.

In August, the Aspen Institute, a think tank headquartered in Washington, D.C., warned up to 40 million Americans were at risk of eviction this year due to non-payment of rent if economic conditions remained unchanged.

Included in the new stimulus package is $25 billion in renters' assistance.

"We've been very fortunate locally," said Soto, whose company manages nearly 600 leased units which house about 1,000 renters, with 80% in Cape Girardeau County, adding a decided majority of his renters are current or have worked out a payment plan.

Soto's firm also manages property in Perry County, Sikeston and in the St. Louis area.

"We've had to start eviction procedures on three renters," Soto said, who added the moratorium doesn't halt the process but forbids "putting people out" of their homes at least until the end of the month.

Declaration

Soto referenced a sworn declaration the Centers for Disease Control and Prevention (CDC) is requiring of renters who find themselves facing eviction.

The CDC's declaration for a "temporary halt in evictions to prevent further COVID-19 spread," is not blanket coverage for all non-payment situations.

"Obviously, eviction is a last resort and if people are making an effort, we're putting them on installment to get paid up," said Soto.

One part of the effort, said Soto, whose company was founded in Cape in 2008, is to fill out the CDC form on penalty of perjury.

"We have three (renters) who have submitted the declaration to us," said Soto, a document which requires the renter to acknowledge:

• "I have used best efforts to obtain all available government assistance for rent or housing."
• "I am unable to pay my full rent or make a full housing payment due to substantial loss of household income, loss of compensable hours of work or wages, layoffs or extraordinary out-of-pocket medical expenses."
• "I am using my best efforts to make timely partial payments that are as close to the full payment as (my) circumstances may permit, taking into account other nondiscretionary expenses."
• "If evicted I would likely become homeless, need to move into a homeless shelter, or need to move into a new residence shared by other people who live in close quarters because I have no other available housing options."

CDC researchers have warned evictions early on in the pandemic could have increased the COVID death toll, as displaced renters crowd in with friends or family or end up homeless -- both of which make it nearly impossible to follow public health guidelines around social distancing.

Other side of the coin

Soto said most of the property his firm manages are owned by "mom-and-pop," not by speculators or large real estate investors.

"What 'mom and pop' means is, if a renter doesn't pay, it often means the owner can't turn around and pay the mortgage on that property," he added, which can start a domino effect. "If the owner can't pay the mortgage, foreclosure starts and the renter will be put out anyway."

Soto, who is also a director of the Cape Area Landlord Association, said nobody in property management wants to put people on the street.

"(Eviction) is not good for anyone -- not the renter, not the owner and not the bank holding the (mortgage) note," Soto said, adding he is aware that in St. Louis, courts are not currently processing renter expulsions and sheriff's offices are not delivering eviction notices due to the pandemic.