Federal Disaster Housing Stability Act of 2020

To provide for a moratorium on evictions from and foreclosures on residences during a major disaster or emergency, and for other purposes. 1. Short title This Act may be cited as the Federal Disaster Housing Stability Act of 2020 2. Foreclosure moratorium Except with respect to a vacant or abandoned property, in the case of any disaster, a servicer of a Federally backed mortgage loan on a property located within the disaster area with respect to such disaster may not, during the moratorium period with respect to such area, initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale. 3. Eviction moratorium (a) Moratorium In the case of any disaster, the lessor of a covered dwelling that is located within the disaster area with respect to such disaster may not, during the moratorium period with respect to such area— (1) make, or cause to be made, any filing with the court of jurisdiction to initiate a legal action to recover possession of the covered dwelling from the tenant for nonpayment of rent or other fees or charges; or (2) charge fees, penalties, or other charges to the tenant related to such nonpayment of rent. (b) Notice In the case of any disaster, the lessor of a covered dwelling unit that is located within the disaster area with respect to such disaster— (1) may not require the tenant to vacate the covered dwelling unit before the date that is 30 days after the date on which the lessor provides the tenant with a notice to vacate; and (2) may not issue a notice to vacate under paragraph (1) until after the expiration of the moratorium period with respect to such area. 4. Definitions For purposes of this Act, the following definitions shall apply: (1) Covered dwelling The term covered dwelling (A) pursuant to a residential lease; or (B) without a lease or with a lease terminable under State law; and (2) Disaster The term disaster (A) any national emergency declared by the President under the National Emergencies Act ( 50 U.S.C. 1601 (B) any major disaster or emergency declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 4121 (3) Disaster area The term disaster area (4) Dwelling The term dwelling (A) has the meaning given the term in section 802 of the Fair Housing Act ( 42 U.S.C. 3602 (B) includes houses and dwellings described in section 803(b) of such Act ( 42 U.S.C. 3603(b) (5) Federally backed mortgage loan The term Federally backed mortgage loan (A) is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1 to 4 families, including any such secured loan, the proceeds of which are used to prepay or pay off an existing loan secured by the same property; and (B) is made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way, by any officer or agency of the Federal Government or under or in connection with a housing or urban development program administered by the Secretary of Housing and Urban Development or a housing or related program administered by any other such officer or agency, or is purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association. (6) Moratorium period The term moratorium period (A) begins upon the declaration of the disaster for which such declaration was made; and (B) ends upon the later of— (i) the date on which the effectiveness of such declaration terminates for such area; or (ii) the date on which a certification under section 5(b) for the State in which such area is located is published in the Federal Register. 5. Termination of moratorium period by unemployment rate (a) Monitoring In the case of a disaster, the Secretary of Labor shall continually monitor the unemployment rate for each State in which any disaster area with respect to such disaster is located to determine the first time after the beginning of the moratorium period with respect to any such disaster area that the unemployment rate for the State has been less than 8.5 percent for each of 2 consecutive calendar months, each such month commencing after the beginning of the moratorium period. (b) Certification In the case of a disaster, the Secretary of Labor shall, upon making a determination that the unemployment rate for a State, as determined by the Bureau of Labor Statistics, has been less than 8.5 percent for each of 2 consecutive calendar months, each such month commencing after the beginning of the moratorium period with respect to a disaster area located within such State, immediately cause to be published in the Federal Register a certification of such unemployment rate for such months for such State for purposes of determining the termination of the moratorium period for such disaster area. 6. Applicability This Act shall apply with respect to any disaster for which the declaration of the disaster is in effect on the date of the enactment of this Act and any disaster for which such declaration is made after such date of enactment.

Summary: Federal Disaster Housing Stability Act of 2020 This bill imposes limits on foreclosures and evictions in areas affected by a declared disaster or emergency. A servicer of certain federally backed residential mortgages for a property in such an area may not initiate the foreclosure process or take other foreclosure-related actions relating to that property unless the property is vacant or abandoned. Similarly, the landlord of a dwelling in such an area may not (1) initiate eviction proceedings against a tenant in that dwelling for nonpayment of rent or fees, (2) charge that tenant a penalty for nonpayment of rent, or (3) otherwise require the tenant to vacate the dwelling. These restrictions shall be in place until the declared emergency or disaster ends or the unemployment rate for the affected state remains below a certain threshold for two consecutive months, whichever occurs later.