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T he COVID-19 pandemic and the resulting economic fallout have exacerbated a housing crisis in Colorado and across the country. Many citizens risk losing their homes due to job loss or illness. Landlords face their own chal- lenges as they rely on rental income to pay off loans and bills for their properties. In the midst of the crisis, states and localities have adopted moratoria restricting evictions and, on Sept. 4, the Centers for Disease Control and Prevention issued an order titled, “Temporary Halt in Residential Evic- tions to Prevent the Further Spread of COVID-19.”The order remains in effect until the end of the year and provides eviction protection for residential ten- ants who cannot pay rent. To qualify for protection, a tenant must satisfy the requirements under the order. To make things even more complex for Coloradans, Gov- ernor Polis issued a more restrictive order (Order 227) for Colorado on Oct. 21 – potentially making the CDC order inapplicable to Colorado. As landlords and tenants navigate this unprecedented order, we offer a closer look at the mechanics of the order, the legal implications and how landlords can navigate the potential hardships.We’ll also discuss the interplay between the CDC order and Order 227, and whether the CDC order currently is operative in Colo- rado at all. n Understanding the CDC order. The CDC order only prohibits eviction if a tenant does not pay rent and meets all of the following requirements: 1. Tenant must make “best efforts” to make partial timely payments as close as possible to the full amount due. The tenant also must attempt to obtain any available governmental rental assistance. 2. Tenant cannot expect to earn more than $99,000 in 2020 or $198,000 if married and filing jointly. 3. Tenant must be facing “substan- tial” hardship including loss of house- hold income, lay-off from a job or extraordinary out-of-pocket medical expenses. 4. Eviction would cause homeless- ness or crowded living circumstance. Landlords can evict tenants who do not pay rent and do not meet the requirements. Landlords also can evict tenants for reasons other than not paying rent. Further, the CDC order does not relieve any tenant from obli- gations under a lease, including the obligation to pay rent. That means all Please see Page 32 INSIDE Updates on what’s happening across Colorado as well as construction and sales activity Colo. market updates Affordable housing advocates share tips on how to plan for services in 2021 Affordable housing PAGES 35-39 As the pandemic pushes people out of the office, “Zoom towns” become boom towns Seeking space PAGE 22 November 2020 PAGES 4-12 BenjaminMcKay Attorney, Polsinelli Understand eviction orders and their impact on landlords Michael Shomo Attorney, Polsinelli Scott Graham, Unsplash The Centers for Disease Control and Prevention order prohibits eviction until the end of the year if a tenant does not pay rent and meets four specific requirements. In late October, Colorado Governor Jared Polis issued an even more restrictive order.
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