Michigan Supreme Court Lansing, Michigan Bridget M. McCormack, Chief Justice David F. Viviano, Chief Justice Pro Tem Stephen J. Markman Brian K. Zahra Richard H. Bernstein Elizabeth T. Clement Megan K. Cavanagh, Justices I, Larry S. Royster, Clerk of the Michigan Supreme Court, certify that the foregoing is a true and complete copy of the order entered at the direction of the Court. April 16, 2020 Order Clerk April 16, 2020 ADM File No. 2020-08 Administrative Order No. 2020-8 Additional Verification Required for Landlord Tenant Cases The federal Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), Public Law No. 116-136, imposes a moratorium, until July 25, 2020, on the filing of summary proceeding actions to recover possession of premises for nonpayment of rent that meet certain parameters. Therefore, on order of the Court, pursuant to 1963 Const, Art VI, Sec 4, which provides for the Supreme Court’s general superintending control over all state courts, a complainant who files a summary proceeding action before July 25, 2020 under MCR 4.201 for possession of premises for nonpayment of rent also must submit verification indicating whether the property is exempt from the moratorium provided for under the CARES Act. The verification shall be made on a SCAO-approved form. This order is effective until July 25, 2020, or as further ordered by the Court.
Transcript
Michigan Supreme Court Lansing, Michigan
Bridget M. McCormack,
Chief Justice
David F. Viviano, Chief Justice Pro Tem
Stephen J. Markman
Brian K. Zahra Richard H. Bernstein Elizabeth T. Clement Megan K. Cavanagh,
Justices
I, Larry S. Royster, Clerk of the Michigan Supreme Court, certify that the foregoing is a true and complete copy of the order entered at the direction of the Court.
April 16, 2020
Order
Clerk
April 16, 2020 ADM File No. 2020-08 Administrative Order No. 2020-8 Additional Verification Required for Landlord Tenant Cases
The federal Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), Public Law No. 116-136, imposes a moratorium, until July 25, 2020, on the filing of summary proceeding actions to recover possession of premises for nonpayment of rent that meet certain parameters.
Therefore, on order of the Court, pursuant to 1963 Const, Art VI, Sec 4, which
provides for the Supreme Court’s general superintending control over all state courts, a complainant who files a summary proceeding action before July 25, 2020 under MCR 4.201 for possession of premises for nonpayment of rent also must submit verification indicating whether the property is exempt from the moratorium provided for under the CARES Act. The verification shall be made on a SCAO-approved form.
This order is effective until July 25, 2020, or as further ordered by the Court.
STATE OF MICHIGANJUDICIAL DISTRICT VERIFICATION FOR COMPLAINT
NONPAYMENT OF RENTLandlord - Tenant
CASE NO. and JUDGE
Court address Court telephone no.
Approved, SCAOForm DC 504, Rev. 4/20P.L. 116-136Page 1 of 2
Distribute form to: Court Tenant LandlordMailing
Plaintiff’s name, address, and telephone no.
v
Defendant’s name, address, and telephone no.
Plaintiff’s attorney, bar no., address, and telephone no. Defendant’s attorney, bar no., address, and telephone no.
The plaintiff states:
1. I am seeking to recover possession of the following described premises:
2. The property is not a covered dwelling as defined by Sec. 4024(a)(1) of the CARES Act.
NOTE: See page 2 for definitions.
I declare under the penalties of perjury that this verification has been examined by me and that its contents are true to the best of my information, knowledge, and belief.
Date
Plaintiff/Attorney signature
CARES ActPublic Law 116-136
Explanation of Terms
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. ...
Frequently Asked Questions (FAQ) – CARES Act Moratorium on Evictions and Foreclosures
Evictions
1. May a landlord evict a tenant of a “covered dwelling” for nonpayment of rent or other fees or charges?
No. The lessor of a covered dwelling may not 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 before July 25, 2020. Sec. 4024(b)
The lessor is also unable to charge fees, penalties, or other charges to the tenant related to the nonpayment of rent. Sec 4024(b)(2)
2. How do I know if my property is a “covered dwelling” under the CARES Act?
A covered dwelling is a dwelling that is (1) occupied by a tenant pursuant to a residential lease or without a lease or with a lease terminable under State law and (2) is on or in a covered property. Sec. 4024(a)(1)
A covered property is any property that has a (1) federally backed mortgage or multifamily mortgage loan or (2) participates in:
a. 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
b. The rural housing voucher program under section 542 of the Housing Act of 1949 (42 U.S.C. 1490r).
See the attached flowchart for additional information about determining if a property is considered a “covered dwelling” under the CARES Act.
3. How do I know if my property has a “federally backed mortgage” or participates in a
“covered housing program”?
A federally backed mortgage loan is any loan that is secured by a first or subordinate lien on residential real property designed for the occupancy of one or more families and 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 (“Freddie Mac”) or the Federal National Mortgage Association (“Fannie Mae”). Sec 4024(a)(4)-(5).
If you are unsure whether a mortgage loan on a property is federally backed, you could:
• Use a look-up tool such as Freddie Mac’s or Fannie Mae’s • Contact your loan servicer • Review your mortgage and loan documents • For HUD/FHA loans, contact HUD’s National Servicing Center at 877-622-8525
Covered housing programs are defined in section 41411(a) of the Violence Against Women Act of 1994 (34 U.S.C. 12491(a)) and the rural housing voucher program under section 542 of the Housing Act of 1949 (42 U.S.C. 1490r). They include housing programs under the following:
• Section 8 Housing Vouchers under section 1437f of title 42; • Supportive housing for the elderly (12 USC 1701q) • Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
8013); • Subtitle D of title VIII of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12901 et seq.); • Subtitle A of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11360 et seq.); • Subtitle A of title II of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12741 et seq.); • Paragraph (3) of section 1715l(d) of title 12 that bears interest at a rate determined
under the proviso under paragraph (5) of such section 1715l(d); • Program under section 1715z–1 of title 12; • Programs under sections 1437d of title 42; • Rural housing assistance provided under sections 1484, 1485, 1486, 1490m, and
1490p–2 of title 42; and • The low income housing tax credit program under section 42 of title 26. • Rural housing voucher program (42 U.S.C. 1490r)
4. What notice must the lessor of a covered dwelling unit give before evicting a tenant?
The lessor of a covered dwelling must give a tenant at least 30 days’ notice before requiring a tenant to vacate a dwelling. The notice to vacate a covered dwelling may not be issued to a tenant until after July 25, 2020. Sec. 4024(c)
5. May a servicer of a federally backed mortgage loan foreclose on a property right now?
No. Except with vacant or abandoned properties, a servicer of a Federally backed mortgage loan may not 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 for not less than the 60-day period beginning on March 18, 2020. Sec. 4022(c)(2).
For the purpose of this section, a federally backed mortgage loan is any loan which 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 that is:
a. Insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.);
b. Insured under section 255 of the National Housing Act (12 U.S.C. 1715z–20); c. Guaranteed under section 184 or 184A of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z–13a, 1715z–13b); d. Guaranteed or insured by the Department of Veterans Affairs; e. Guaranteed or insured by the Department of Agriculture; f. Made by the Department of Agriculture; or g. Purchased or securitized by the Federal Home Loan Mortgage Corporation
(Freddie Mac) or the Federal National Mortgage Association (Fannie Mae). Sec. 4022(a)(2)
6. May a borrower with a federally backed mortgage loan request a forbearance?
Yes, if the borrower is experiencing a financial hardship due, directly or indirectly, to the COVID-19 emergency regardless of delinquency status. The borrower needs to submit a request to the borrower’s servicer and affirm the borrower is experiencing a financial hardship during the COVID-19 emergency. Sec 4022(b)(1).
Upon the request of the borrower, the forbearance must be granted for up to 180 days and must be extended for an additional period up to 180 days upon the request of the borrower. The forbearance periods may be shortened upon the request of the borrower. Sec 4022(b)(2)
“Covered Dwellings” Under the CARES Act (Public Law No. 116-136)
Is the property a dwelling?1
The property is not a “covered dwelling” under the CARES Act
No
Is the property occupied by a tenant pursuant to a (1) residential lease or (2) without a lease or with a lease terminable under State law? Sec 4024(a)(1)(A)
Yes
1. Dwellings are defined as any building, structure, or portion thereof which is occupied as, or designated or intended for occupancy as, a residence by one or more families, and any vacant land which is offered for sale or lease for the construction or location thereon of any such building , structure or portion therefore. A dwelling in this section also includes houses and dwellings described in 42 U.S.C. 3603(b). Sec 4024(a)(3).
2. Federally Backed Mortgage Loan includes any loan (other than temporary financing such as a construction loan) that is (1) 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 (2) 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 admi nistered by the Secretary of Housing and Urban Development (HUD) 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 (Freddie Mac) or the Federal National Mortgage Association (Fannie Mae). Sec 4024(a)(4).
3. Federally Backed Multifamily Mortgage Loan includes any loan (other than temporary financing such a construction loan) that (1) 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 (2) 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 Hou sing and Urban Development (HUD) 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 (Freddie Mac) or the Federal National Mortgage Association (Fannie Mae). Sec 4024(a)(5).
Does the property have a federally backed mortgage loan2 or a federally backed multifamily mortgage loan?3 Sec 4024(a)(2)(B)
Yes
The property is a “covered dwelling” under the CARES Act
Yes
No
Does the property participate in either 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 the rural housing voucher program under section 542 of the Housing Act of 1949 (42 U.S.C. 1490r)? Note: This includes Section 8 Housing Vouchers
