ASHOKA LION CURRENT OWNERS COVID-19 UPDATES

Current Legal Updates for Houston and Dallas landlords regarding evictions

(revised 5.13.21)

Legal Case Challenges

1. Texas Judge argued that the CDC eviction moratorium order was unconstitutional. The Texas judges ruling has included reasoning that an act of Congress could not extend the moratorium in future. However,  he did not rule for a injunction which was what the plaintiffs were arguing for. There is legal debate on the impact of the judgement without ruling for the injunction.
2. DC judge rules that the CDC eviction moratorium order was unconstitutional. The ruling was challenged by the Federal Government and there is a stay until a higher court hears the case to determine the merits.

CFPB expands rules for collection of past due rents for debt collectors

The Consumer Financial Protection Bureau has expanded the requirements for debt collection. This expansion of the requirements can govern property managers and lawyers who are part of the debt collection process (processing a eviction requires sending notices for delinquency or filing cases to remove tenants for nonpayment). This law states that debt collectors need to provide written notice (not email) for tenant protections when presenting the process for collection.  This will require the adjustment of our notices for tenants about delinquency (Pay or Quit Tenancy type notices).  As the intent of the law is to slow evictions by educating tenants of their rights, property managers and attorneys have to insure that the paperwork is handled correctly.  Florida eviction expert, Harry Heist, discusses the changes and explains why property managers and landlords have to be careful regarding processing our eviction papers. He explains that the impact of educating tenants maybe limited as they are probably aware, but we should not ignore the law.

Ashoka Lion's current position is that all tenant removal process will be handled by involving appropriate legal counsel to insure that we are handling the situation as best as we can in this very confusing legal environment.  Our Houston property managers have also assisted tenants in filing for rental assistance, and our Houston and Dallas property management teams are offering a option for tenants to get rent paid on 3rd but paying their payments in installments with our new service provider partnerships.

RE: Prior understanding for COVID 19 for Houston and Dallas landlords

(Revised as 2.15.21)

Property Managers and Landlords are navigating unprecedented times in regards to the COVID 19 pandemic. Ashoka Lion has worked tirelessly to make protocol and process changes to help our landlord and rental clients in our Houston and Dallas markets.

Ashoka Lion understand that the pandemic has created a lot of concern and worry for many landlords due to rental and eviction moratoriums and general worry about rental collection during these difficult times for many in the Houston and Dallas area as well around the United States.   Per our latest understanding ,the rental moratorium has been extended to March 31, 2021 and there are policy experts predicting that it could be further extended to September 30, 2021.

What does this mean for landlords?

1) Our property management company has discussed with our local eviction vendors, reviewed industry analysis provided,  and discussed with our legal counsel on retainer about the moratorium.  It is very difficult to muster a legal challenge to evict for nonpayment of rent.

2) Failure to comply with the legal doctrine can be extremely expensive over 100k in fines for failure to adhere.

3) However, other forms of legal challenges to tenant staying at the property can be mounted for:

• breach of lease for other items
• holdover tenancy

4) If a landlord wants to challenge the CDC moratorium, then nonpayment of rent cases must be represented by legal counsel. Our property managers can help find a attorney to cover the matter, but the cases can range from $700 to $1500. This does not stop a tenant from challenging and the timelines can be extremely slow moving.

What has Ashoka Lion done for landlords regarding these new rule?

Ashoka Lion understands that our Houston and Dallas owners are facing many challenges and I want to assure you that our property management teams are working tirelessly to protect our investors while also navigating these complex times.

1) Constant Communication with our landlords and tenants regarding the moratorium. 

Our property management firm has sent 4 letters we sent to tenants during the months of March, April, May, June 2020 to encourage them to make payments or get on payment plans.  Examples of those letters are available for your review.

2) Suspended lease renewals with tenants so owners can retain flexibility for removing tenants from the property.

Our Houston and Dallas property managers are carefully reviewing renewals situation and not offering renewals.  In fact, we are encouraging tenants to avoid month to month fees rate increases by maintaining their required tenant compliance requirements (renters insurance, updated pet records, maintenance assessment, and self guided tour on file). 

3) Worked with tenant to find assistance programs to pay their rent or past due amounts owed.

There is a lot of time to go till we have moved past the COVID 19 pandemic and the economic fall out from it, but our property management teams are working diligently on the behalf of our rental owners to help them succeed in these difficult times.

Respectfully,

Jay Raman

Managing Director

Ashoka Lion