[House Report 118-616]
[From the U.S. Government Publishing Office]


118th Congress    }                                    {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {       118-616

======================================================================



 
                     RESPECT STATE HOUSING LAWS ACT

                                _______
                                

 July 30, 2024.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. McHenry, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 802]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 802) to amend the CARES Act to remove a 
requirement on lessors to provide notice to vacate, and for 
other purposes, having considered the same, reports favorably 
thereon with an amendment and recommends that the bill as 
amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Related Hearings.................................................     2
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     6
Performance Goals and Objectives.................................     6
Congressional Budget Office Estimates............................     6
New Budget Authority, Entitlement Authority, and Tax Expenditures     7
Federal Mandates Statement.......................................     7
Advisory Committee Statement.....................................     7
Applicability to Legislative Branch..............................     7
Earmark Identification...........................................     7
Duplication of Federal Programs..................................     7
Section-by-Section Analysis of the Legislation...................     7
Changes in Existing Law Made by the Bill, as Reported............     7
Minority Views...................................................    10

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Respect State Housing Laws Act''.

SEC. 2. CLARIFICATION.

  Section 4024 of the CARES Act (15 U.S.C. 9058) is amended by striking 
subsection (c).

                          Purpose and Summary

    Introduced on February 2, 2023, by Representative Barry 
Loudermilk, H.R. 802, the Respect State Housing Laws Act, would 
remove a drafting error in Section 4024 of the CARES Act (P.L. 
116-136) relating to the expired temporary 30-day eviction 
notice requirement in federally assisted or federally backed 
housing.

                  Background and Need for Legislation

    Passed in March 2020 during the height of the pandemic, 
Section 4024 of the CARES Act provides ``a temporary eviction 
moratorium on eviction filings.'' Subsection (b) of Section 
4024 established a temporary 120-day federal moratorium on 
evictions as well as a moratorium on any associated fees, 
penalties, or other charges resulting from the nonpayment of 
rent for federally backed or assisted housing units. 
Additionally, subsection (c) of Section 4024 included a 
temporary 30-day eviction notice requirement. Under this 
provision, landlords were prohibited from being able to evict a 
tenant ``until after the expiration of the [120-day] period 
plus an additional 30 days after notice is given.'' Both 
provisions of Section 4024 expired on July 24, 2020.
    Despite their expiration, trial attorneys and various 
tenant advocates have attempted to exploit a drafting error in 
this provision to effectively create a permanent nationwide 30-
day eviction notification requirement. As a result, property 
owners and landlords have been subjected to frivolous lawsuits 
disputing the legitimacy of an eviction based on the assertion 
the expired 30-day federal notice requirement was not followed. 
Rep. Loudermilk introduced H.R. 802 to eliminate this alleged 
ambiguity and return jurisdiction over eviction laws back to 
the states and localities. H.R. 802 strikes the text of the 
expired subsection (c) from Section 4024 to make clear that 
this provision was intended to be a temporary tool during the 
pandemic and not a permanent nationwide eviction notice 
requirement beyond the mandate of local law enforcement.
    H.R. 802 is supported by the Council for Affordable and 
Rural Housing Institute of Real Estate Management, Manufactured 
Housing Institute, National Affordable Housing Management 
Association, National Apartment Association, National 
Association of Home Builders, National Association of Housing 
Cooperatives, National Association of Realtors, National 
Association of Residential Property Managers, National Leased 
Housing Association, and the National Multifamily Housing 
Council.

                                Hearing

    Pursuant to clause 3(c)(6) of rule XIII, the following 
hearing was used to develop H.R. 802: The Subcommittee on 
Housing and Insurance of the Committee on Financial Services 
held a hearing on December 6, 2023, titled ``Housing 
Affordability: Governmental Barriers and Market-Based 
Solutions.''

                        Committee Consideration

    The Committee on Financial Services met in open session on 
April 17, 2024, and ordered H.R. 802 to be reported favorably 
to the House as amended by a recorded vote of 29 ayes to 21 
nays (Record vote no. FC-128, a quorum being present. Before 
the question was called to order the bill favorably reported, 
the Committee adopted an amendment in the nature of a 
substitute offered by Mr. Loudermilk by voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the order to report legislation and amendments thereto. H.R. 
802 was ordered reported favorably to the House as amended by a 
recorded vote of 29 ayes to 21 nays (Record vote no. FC-128), a 
quorum being present.
    An amendment offered by Ms. Waters, no. 2, was not agreed 
to by a recorded vote of 21 ayes to 29 nays (Record vote no. 
FC-127), a quorum being present.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the findings and recommendations of 
the Committee, based on oversight activities under clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
are incorporated in the descriptive portions of this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the goal of H.R. 802 is to remove a 
drafting error in Section 4024 of the CARES Act (P.L. 116-136) 
relating to the expired temporary 30-day eviction notice 
requirement in federally assisted or federally backed housing.

                 Congressional Budget Office Estimates

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    H.R. 802 would repeal the federal requirement that 
landlords provide tenants with a 30-day notice to vacate a unit 
in federally assisted or backed housing as required by the 
Coronavirus Aid, Relief, and Economic Security (CARES) Act.
    Using information from the Department of Housing and Urban 
Development, CBO estimates that implementing H.R. 802 would 
cost less than $500,000. Any related spending would be subject 
to the availability of appropriated funds.
    The CBO staff contact for this estimate is Zunara Naeem. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Director of Budget Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives, the Committee adopts as its own the 
estimate of new budget authority, entitlement authority, or tax 
expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1973.

                       Federal Mandates Statement

    Pursuant to section 423 of the Unfunded Mandates Reform 
Act, the Committee adopts as its own the estimate of the 
Federal mandates prepared by the Director of the Congressional 
Budget Office.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes a program of 
the Federal Government known to be duplicative of another 
Federal program, including any program that was included in a 
report to Congress pursuant to section 21 of the Public Law 
111-139 or the most recent Catalog of Federal Domestic 
Assistance.

             Section-by-Section Analysis of the Legislation

    Section 1. Sets the short title of the bill as the 
``Respect State Housing Laws Act.''
    Section 2. Repeals the expired Subsection (c) 30-day prior 
notice requirement of Section 4024 of the CARES Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets and 
existing law in which no change is proposed is shown in roman):

                               CARES ACT



           *       *       *       *       *       *       *
   DIVISION A--KEEPING WORKERS PAID AND EMPLOYED, HEALTH CARE SYSTEM 
ENHANCEMENTS, AND ECONOMIC STABILIZATION

           *       *       *       *       *       *       *


TITLE IV--ECONOMIC STABILIZATION AND ASSISTANCE TO SEVERELY DISTRESSED 
                  SECTORS OF THE UNITED STATES ECONOMY

Subtitle A--Coronavirus Economic Stabilization Act of 2020

           *       *       *       *       *       *       *


SEC. 4024. TEMPORARY MORATORIUM ON EVICTION FILINGS.

  (a) Definitions.--In this section:
          (1) Covered dwelling.--The term ``covered dwelling'' 
        means a dwelling that--
                  (A) is occupied by a tenant--
                          (i) pursuant to a residential lease; 
                        or
                          (ii) without a lease or with a lease 
                        terminable under State law; and
                  (B) is on or in a covered property.
          (2) Covered property.--The term ``covered property'' 
        means any property that--
                  (A) participates in--
                          (i) a covered housing program (as 
                        defined in section 41411(a) of the 
                        Violence Against Women Act of 1994 (34 
                        U.S.C. 12491(a))); or
                          (ii) the rural housing voucher 
                        program under section 542 of the 
                        Housing Act of 1949 (42 U.S.C. 1490r); 
                        or
                  (B) has a--
                          (i) Federally backed mortgage loan; 
                        or
                          (ii) Federally backed multifamily 
                        mortgage loan.
          (3) Dwelling.--The term ``dwelling''--
                  (A) has the meaning given the term in section 
                802 of the Fair Housing Act (42 U.S.C. 3602); 
                and
                  (B) includes houses and dwellings described 
                in section 803(b) of such Act (42 U.S.C. 
                3603(b)).
          (4) Federally backed mortgage loan.--The term 
        ``Federally backed mortgage loan'' includes any loan 
        (other than temporary financing such as a construction 
        loan) that--
                  (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.
          (5) Federally backed multifamily mortgage loan.--The 
        term ``Federally backed multifamily mortgage loan'' 
        includes any loan (other than temporary financing such 
        as a construction loan) that--
                  (A) is secured by a first or subordinate lien 
                on residential multifamily real property 
                designed principally for the occupancy of 5 or 
                more 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.
  (b) Moratorium.--During the 120-day period beginning on the 
date of enactment of this Act, the lessor of a covered dwelling 
may not--
          (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.
  [(c) Notice.--The lessor of a covered dwelling unit--
          [(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 period described 
        in subsection (b).]

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    H.R. 802 would strike a provision in the CARES Act that 
requires landlords and Public Housing Authorities (PHAs) to 
provide renters living in certain housing receiving federal 
assistance or financed through federally backed and insured 
mortgages, with a minimum of 30 days notice prior to requiring 
a tenant to vacate due to an eviction. Some courts have ruled 
that this notice requirement is permanent while other courts 
have ruled that it expired along with the temporary eviction 
moratorium in CARES. The minimum 30-day eviction notice 
requirement that passed into law via the CARES Act is codified 
in federal statute at 15 U.S.C. Sec. 9058(c).
    The minimum 30-day eviction notice requirement in the CARES 
Act, which passed on a bipartisan basis, helped protect 
millions of families who were on the brink of eviction due to 
no fault of their own during the pandemic. Now, Republicans are 
trying to strip this critical tenant protection despite 
countless families who may still be on the brink of eviction 
due to no fault of their own. While other provisions in the 
CARES Act have explicit sunsets or expiration dates, this 
minimum eviction notice requirement in the CARES Act does not 
have any mention of a sunset or expiration. Moreover, HUD,\1\ 
FHFA,\2\ and the CFPB\3\ have all issued guidance or notice 
affirming that this provision is still in effect, protecting 
renters who continue to face housing inflation and ongoing 
economic fallout from the pandemic. While Republicans suggest 
this is a drafting error, they have no basis for this claim and 
no rationale to explain why they are stripping this protection 
from families now.
---------------------------------------------------------------------------
    \1\HUD Office of Multifamily Housing Programs, ``Questions and 
Answers for Office of Multifamily Housing Stakeholders'' at 18 (Q. 25), 
last Updated Aug. 9, 2021; HUD PIH, Notice 2021-29, Oct. 7, 2021.
    \2\FHFA, Tenant Protections for Enterprise-Backed Rental Properties 
in Response to COVID-19, Sept. 14, 2021.
    \3\CFPB, ``Protections for renters in multi-family housing or 
federally subsidized housing''.
---------------------------------------------------------------------------
    This bill would lead to more evictions and increase 
homelessness. Widely recognized as a best practice in the 
housing field, 30-day eviction notices help reduce evictions, 
promote housing stability, and offset homelessness by providing 
renters with adequate notice and information about the reason 
for eviction.\4\ In fact, HUD estimates that 30-day notices of 
eviction for non-payment of rent alone reduce the level of 
evictions by between 1,600 and 4,900 annually.\5\ Additionally, 
a recent study found that increased rates of sheltered 
homelessness were positively correlated with eviction filings, 
signaling the utility of eviction prevention measures, such as 
30-day notices, to help families remain stably housed.\6\
---------------------------------------------------------------------------
    \4\The White House, Blueprint for A Renters Bill of Rights (Jan. 
2023).
    \5\HUD, 30-Day Notification Requirement Prior to Termination of 
Lease for Nonpayment of Rent, 88 FR 83877 (Dec. 1, 2023) (proposed 
rule).
    \6\Dan Treglia et al., Quantifying the Impact of Evictions and 
Eviction Filings on Homelessness Rates in the United States (Mar. 31, 
2023).
---------------------------------------------------------------------------
    The provision of 30-days written notice of eviction not 
only provides tenants with additional time to avoid eviction, 
but also reduces the time and cost burdens on landlords and 
PHAs that are associated with evictions. Eviction notices may 
also prompt renters to seek legal representation, remedy 
arrears and other potential lease violations, and learn about 
alternative forms of assistance through HUD administrative 
flexibilities and local eviction diversion and prevention 
programs. The CARES Act notice requirement also aligns with the 
Biden Administration's Blueprint for a Renters' Bill of Rights, 
which supports 30-day eviction notices for all renters.\7\
---------------------------------------------------------------------------
    \7\Supra note 5.
---------------------------------------------------------------------------
    This bill is opposed by the following groups: National Low 
Income Housing Coalition, National Housing Law Project, 
Americans for Financial Reform, National Alliance to End 
Homelessness, and National Consumer Law Center (on behalf of 
its low-income clients).
    For these reasons, we oppose H.R. 802.
            Sincerely,
                                   Maxine Waters,
                                           Ranking Member.
                                   Nydia M. Velazquez,
                                   Brad Sherman,
                                   Gregory W. Meeks,
                                   David Scott,
                                   Stephen F. Lynch,
                                   Al Green,
                                   Emanuel Cleaver II,
                                   Bill Foster,
                                   Joyce Beatty,
                                   Ayanna Pressley,
                                   Rashida Tlaib,
                                   Sylvia R. Garcia,
                                   Nikema Williams,
                                           Members of Congress.

                                  [all]