Supreme Court Ruling on Evictions Likely to Put Pressure on Some Members Over Housing; DOJ Weighs In With Plea to Legal Community

Credit unions will need to prepare for at least some members facing housing insecurity and other related issues following a Supreme Court ruling that overruled the Biden administration's newest federal ban on evictions. The ruling came in response to a bid from a group of landlords to block the pandemic-related protections for renters facing eviction in most of the country.

In an unsigned opinion, and with three Democrat-appointed justices in dissent, the court said that "careful review" of the case "makes clear that the applicants are virtually certain to succeed on the merits of their argument that the CDC has exceeded its authority."

"It would be one thing if Congress had specifically authorized the action that the CDC has taken. But that has not happened," the court stated. "Instead, the CDC has imposed a nationwide moratorium on evictions in reliance on a decades-old statute that authorizes it to implement measures like fumigation and pest extermination. It strains credulity to believe that this statute grants the CDC the sweeping authority that it asserts."

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In response to the Supreme Court's decision, U.S. Attorney General Merrick Garland called on the legal community to render aid when and where they could to address the looming housing and evictions crisis.

"As federal and local eviction moratoriums expire around the country, eviction filings are expected to spike to roughly double their pre-pandemic levels. According to a recent Census Bureau survey, over six million American households report that they are behind on rent," writes Garland. "Over three million households that are behind on rental payments believe they may be evicted in the next two months."

Read the Attorney General's letter