SOUTHEASTERN, N.C. — Evictions based on late or no payment and utility shut-offs are temporarily banned in North Carolina as residents still face economic impacts from the coronavirus.
Governor Roy Cooper signed Executive Order 142 Saturday, blocking summary ejections or other eviction proceedings the day before a previous order pausing evictions was due to expire.
The latest eviction ban will remain in place through June 20 while the utility shut-off ban will last through July 29.
Residential landlords are not permitted to charge late fees or interest pursuant to the new order. They are also required to make “reasonable payment arrangements” with tenants to pay off late or unpaid rent over a six month period. No late fees, interest, or other penalties may be charged associated with the payoff arrangement.
Commercial landlords do appear to still have the ability to evict tenants for nonpayment, but only if the reason for nonpayment is unrelated to Covid-19. Residential tenants are not required to prove or disclose the reason for late payment or nonpayment, while commercial tenants are. If a commercial landlord attempts to evict a tenant within 72 hours without inquiring whether nonpayment was caused by Covid-19, that eviction is void, according to the order.
Residential evictions for reasons other than nonpayment may continue. While the governor’s order blocks many eviction proceedings, it is clear to point out that rent is still due.
As for late payments on mortgages, there are no state orders blocking foreclosures from being initiated. The governor’s order only encourages lenders to consider payment alternatives for clients financially impacted by the Covid-19 crisis.
“The undersigned strongly encourages all lenders to work with property owners to the best of their abilities to provide loan payment flexibility that enables property owners to avoid foreclosures, in light of the COVID-19 State of Emergency,” the order states.
Utility providers are not permitted to charge late payments and are encouraged to negotiate repayment plans with customers that fall behind. If no arrangement is made, the default repayment schedule is six months, according to the order.
In a release announcing the extended temporary bans, North Carolina Attorney General Josh Stein said many people still are unable to catch up on payments.
“North Carolinians want to pay their rent, but for far too many people – through no fault of their own – that’s just not possible right now,” Stein said in the release. “We are in unprecedented times that call for unprecedented action. I support Gov. Roy Cooper’s extension of the moratorium on evictions to ensure that people do not face homelessness in the midst of this health and economic crisis.”
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Evictions, utility shut-offs on hold in NC [Free] - Port City Daily
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