MORATORIUM ON EVICTIONS & FORECLOSURES: CANCEL THE RENT NOW!

Moratorium NOW! Coalition

MORATORIUM ON EVICTIONS & FORECLOSURES CANCEL THE RENT

Today, the Covid-19 crisis and the economic disaster that is ensuing in its aftermath, is no less an emergency for poor and working people than the 1930’s depression.

During the 1930’s depression, governors and legislatures placed Foreclosure Moratoriums in 25 states including a 5 year moratorium in Michigan. The Michigan Moratorium Act suspended foreclosures and empowered the judge to set the mortgage payment at an amount the homeowner could afford.

When challenged by the banks, the 1930’s moratoriums were upheld as constitutional by the US Supreme Court in the case of Home Building & Loan Association v Blaisdell, 290 US 398 (1934). The Supreme Court held:

“The sovereign right of the Government to protect the lives, health, morals, comfort and general welfare of the people, is paramount to any rights under contracts between individuals.” The foreclosure moratoriums were also upheld by the Michigan Supreme Court in Russell v Battle Creek Lumber Co, 265 Mich App 649 (1934).”

Pursuant to the emergency powers vested in the governor by Michigan law, and in order to protect the lives and general welfare of the people in this unprecedented emergency: Governor Whitmer can and must:

• Place a Moratorium on all Evictions in Michigan for one year or longer if the emergency continues;
• Place a Moratorium on all Foreclosures in Michigan one year or longer if the emergency continues;
• Place a Moratorium on all utility shutoffs including water shutoffs in Michigan for one year or longer if the emergency continues;
• Place a moratorium on all mortgage, rental and utility payments in Michigan for one year or longer if the emergency continues. During the moratorium, payments are suspended until an affordable housing payment is implemented, constituting of not more than 30% of household income to cover rent, mortgage, homeowners’ insurance, property tax, utility and water payments. The mortgage moratorium will cover residential properties including properties subject to rent by landlords owning 4 or less properties.

Moratorium NOW! Coalition