Special General Assembly Session Dealing with COVID-related Issues
THE VIRGINIA LEGISLATURE was called back into session by Governor Northam in mid-August to consider his budget and other measures precipitated by the COVID pandemic.
As the state government grapples with unexpected expenses and loss of revenue, legislators are left to reprioritize as well as to facilitate the disbursement of federal funds to areas most needed.
Not surprisingly, landlord-tenant issues are among the items being considered. Many individuals who lost their jobs and income are finding it difficult to pay for rent and food. In addition, a 2018 New York Times article ranked Virginia as one of the top five states in number of evictions. While much of the data used in that study were incomplete and inaccurate (counting unlawful detainers filed as opposed to actual evictions, for example), the legislature has since that time proposed numerous measures to help tenants.
Legislators are being inundated by appeals from constituents,housing groups, clergy and others to provide rent relief for tenants.Realtors® have been working closely with House and Senate legislators to craft legislation to help tenants impacted by COVID without causing undue harm to landlords. We have stressed that many landlords have also faced economic adversity due to the pandemic and rely on rent payments to pay mortgages on those properties.
WHAT IS BEING CONSIDERED?
As of this writing, Realtors® have made progress on two key pieces of legislation. These bills propose a limited rent relief program. They provide that the landlord offer a renter who is delinquent on rent the opportunity to participate in a payment plan. If the tenant does not agree to this plan within a specified time, the landlord may terminate the lease and proceed to obtain possession of the premises.
Included in these measures is language Realtors® have insisted on:
- Landlords who own four or fewer properties, or less than a 10% interest in four or fewer properties, will not be mandated to offer a rental payment plan, but may opt in
- The offer of a payment plan is to be limited to one time per lease term
- The payment plan is limited to six equal payments, or less if there are less than six months remaining on the lease
- The tenant must sign a statement certifying that they have experienced additional expenses or a loss of income due to the declared state of emergency
- It must be coupled with additional rent relief money for landlords.
Realtors® have opposed an outright eviction moratorium that was included in both the Governor’s budget and in other legislation. As the special session continues, we will be working closely with the legislature and the Governor to fashion equitable housing legislation to address the crisis facing many across our state.
Mary Beth Coya is the NVAR senior vice president for public & government affairs.