14 NEW LAWS THAT ARE MORE FAIR, FAVORABLE AND FRIENDLY TO TENANTS effective July 1 ... · 2020. 3. 6. · 3. Notice to Tenants about Legal Rights - §§36-139(26), 55.1-1204(B), 55.1-1204(G)

14 NEW LAWS THAT ARE MORE FAIR, FAVORABLE AND FRIENDLY TO TENANTS –

effective July 1, 2020 (or later)

Martin Wegbreit, Director of Litigation

Central Virginia Legal Aid Society

101 West Broad Street, Suite #101

Richmond, VA. 23220

804-200-6045 (V) & 804-649-8794 (F)

[email protected]

VIRGINIA HAS 5 OF THE TOP 10 HIGHEST EVICTION RATES AMONG LARGE U.S. CITIES

AND 3 OF THE TOP 5 HIGHEST EVICTION RATES AMONG MID-SIZE U.S. CITIES

EVICTION RATES IN THE CITY OF RICHMOND

IN 2016, AN AVERAGE OF 17.34 EVICTIONS OCCURRED PER DAY

REDLINING & RACISM SHAPED RICHMOND’S NEIGHBORHOODS

1937 RICHMOND REDLINING MAP 2016 RICHMOND EVICTION MAP

REPRESENTATION IN VIRGINIA’S GENERAL DISTRICT COURTS:All civil cases excluding all defaults and “not founds,” etc., 2016

Source: The Virginia Self-Represented Litigant Study, National Center for State Courts

CASE OUTCOMES IN VIRGINIA’S GENERAL DISTRICT COURTS:Unlawful Detainers, 2016, by Representation Status

Source: The Virginia Self-Represented Litigant Study, National Center for State Courts

1. Ban on Source of Funds Discrimination - §§36-96.1:1, 36-96.3

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● Current law – bans discrimination due to race, color, religion, national origin, sex (including sexual orientation & sexual harassment), family status (having children under 18, or being pregnant), elderliness (55 or older), or disability.

● Currently, landlord may deny housing because a tenant wants to use a housing voucher or other source of funds.

● Starting July 1, 2020, source of funds added to the reasons why a person may not be denied housing.

● Not apply to owners of 4 or fewer rental units, or 10% or less ownership interest in 4 or more rental units. Not apply if source of funds not approved within 15 days of request to approve tenancy.

2. Protecting Status of Domestic Abuse Survivors -§§36-96.2, 55.1-1203(D), 55.1-1209(B)

● Current law - landlords do not have to consider person’s status as a domestic abuse survivor when reviewing an application to rent.

● Being a survivor of domestic abuse has after-effects that include a lower credit score.

● Starting July 1, 2020, landlord must consider status as a domestic abuse survivor when reviewing a credit score in a rental application.

● Status can be shown by court order, police report, or letter from a sexual & domestic violence program, housing counselor, or attorney.

● If landlord violates law, survivor can recover actual damages, all amounts paid to the landlord, and attorney’s fees.

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3. Notice to Tenants about Legal Rights -§§36-139(26), 55.1-1204(B), 55.1-1204(G)

● Current law - leases do not have to explain tenant rights.

●Many tenants do not know basic laws about issues such as evictions, repairs, and security deposits.

● Starting July 1, 2020, landlords must offer to potential tenants a statement of tenant rights posted on the website of the Department of Housing and Community Development (DHCD), which include the telephone number and website for the statewide legal aid organization.

● Statement must be signed by both landlord and tenant.

● Landlord may not sue a tenant in any court for any lease violation unless this statement has been signed.

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4. Notice to Subsidized Tenants about Legal Aid -§55.1-1202(D)

● Current law - public housing authority (PHA) must put on any notice terminating a tenancy the name, address, and phone number of local legal aid program.

● Helps protect most vulnerable tenants.

● Starting July 1, 2020, all landlords must put on any notice terminating a subsidized tenancy the statewide legal aid telephone number and website address.

● Notice not effective without this information.

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5. Notice to Public Housing Tenants of Intent toDemolish - §36-7.2

● Current law – PHA does not have to notify tenants of intent to demolish or dispose of housing. Keeps vulnerable tenants from planning ahead.

● Starting January 1, 2021, PHA wishing to demolish or dispose of housing must give 12 months’ advance notice to Virginia Housing Development Authority (VHDA), to any agency giving rental assistance to tenants who would be displaced, and to each individual tenant.

● Notice of: expected date of HUD application; name, address & phone of local legal aid; how to get more information; and how to submit comments.

● During 12 month period, PHA cannot increase rent, change leases, or evict residents except as allowed by law.

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6. Security Deposit Insurance - §§55.1-1204, 55.1-1226

● Current law – Landlord can charge security deposit up to 2 months’ rent.

●Many tenants do not get security deposit returned for up to 45 days, making it difficult to pay the next security deposit.

● Starting July 1, 2020, landlords may allow tenants to provide security deposit insurance for all or part of the security deposit requirement, making it easier for tenants to move from one rental unit to another.

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7. Limits on Late Fees - §55.1-1204(E)

• Current law – no limit in the statute on late fees.

• Some courts will not allow more than a 10% late fees. Other courts will enforce any late fee in the lease.

• Nonpayment of excessive late fees is a frequent cause of eviction.

• Starting July 1, 2020, landlord may charge a late fee of 10% of the periodic (monthly or weekly) rent, or 10% of the remaining balance due and owed, whichever is smaller, and only if late payment is provided for in the written rental agreement.

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8. Repair and Deduct - §55.1-1244.1

• Current law - tenants have only one way to get repairs.

• Must be current in rent, give written notice to the landlord of needed repairs, wait a reasonable period of time for repairs to be made, and if not, pay next month’s rent to court and file a Tenant’s Assertion.

• Starting July 1, 2020, tenants may give written notice to the landlord of needed repairs and wait 14 days. If repairs not made, can contract with a licensed contractor or pesticide business to get needed work done.

• Cost cannot be more than $1,500, or one month’s rent, whichever is higher.

• Tenant can deduct cost of repairs from the rent by giving landlord an itemized statement of the work and a receipt for the work.

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9. Relief to Tenants and Homeowners due toFederal Government Shutdown - §44-209

• Current law - people unable to pay rent or mortgage due to federal government shutdown get no special treatment.

• Starting July 1, 2020, federal government shutdown for 14 or more days triggers protections for federal employees, contractors for federal government, and employees of a contractor for federal government.

• If landlord sues to evict for nonpayment of rent due after start of federal shutdown, tenant can get case postponed for 60 days by coming to court and giving written proof of not getting paid due to shutdown.

• If a homeowner subject to foreclosure after start of federal shutdown, can get foreclosure stopped for 30 days by giving written proof of not getting paid due to the shutdown. May do this up to 90 days after shutdown ends.

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10. Relief to Tenants and Homeowners Affected byCOVID-19 – HB 340

● Protections to tenants affected by loss of income due to COVID-19 state of emergency (3/12 - 6/10, unless changed by Governor’s order)

● Not currently receiving the same wages or payments as before

● If sued to evict for nonpayment of rent unpaid during COVID-19 state of emergency, tenant can get case postponed 60 days

● Come to court with written proof of not getting wages or payments

◦ Paystub showing $0 for pay period (or furlough) during emergency,

◦ or letter showing non-essential employee, or other documents

● Effective April 22, 2020

● Protection not apply to tenants with 120 day federal moratorium

● Protection for other tenants ends 90 days after state of emergency ends

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• Current law - if landlord lockout, self-help eviction, or utility cutoff, tenant may file a Petition for Relief from Unlawful Exclusion.

• Can get order to recover possession, resume utility, actual damages, and attorney’s fees, but only after petition served on the landlord.

• Starting July 1, 2020, tenant can get temporary relief even if landlord has not been served, and even if landlord is not in court.

• Tenant must have made good faith effort to notify landlord about the petition and the hearing.

• If temporary relief granted, must be a full hearing within five days.

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11. Ex parte Orders if Tenant Unlawfully Excluded -§55.1-1243(B)

• Current law - eviction lawsuit filed in court stays on court record for at least ten years.

• Even if lawsuit is dismissed.

• Can harm tenants seeking rental housing in the future.

• Starting January 1, 2022, if eviction lawsuit dismissed and more than six months have passed, tenant can petition to expunge court record.

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12. Expunging Dismissed Eviction Lawsuits inGeneral District Court - §8.01-130.01

• Current law - if mobile home park owner wants to sell park, must give residents 180 days’ advance written notice.

• Starting July 1, 2020, mobile home park owner who wants to sell park, must give 90 days’ advance notice to each resident and to DHCD.

• If offer received, must give 60 days’ advance notice to each resident and to DHCD & consider offers from group of at least 25% of park residents.

• Current law - mobile home park resident who has been evicted has 90 days to move or sell mobile home, and cannot rent it to someone else.

• Starting July 1, 2020, mobile home park resident who has been evicted can rent it to someone else who will pay lot rent to owner. 22

13. Notice of Sale to Mobile Home Park Residents- §§55.1-1308, 55.1-1308.1, 55.1-1316(B)

• Current law - if mobile home park is to undergo a change in use, the owner must give residents 180 days’ advance written notice.

• Most mobile homes cannot be moved, or moved only at great expense.

• Starting July 1, 2020, mobile home park owner who wants to convert the park, must – within the 180 day period – give each resident $2,500 in relocation expenses.

• In Planning District 8 (most of northern Virginia), this amount is $3,500.

• Relocation expenses are stipulated on a written agreement between the park owner and the resident to remove the home from the park.

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14. Relocation Expenses to Mobile HomePark Residents- §55.1-1308.1