COVID-19 Emergency Preparedness Update | Updated 10.28.20

Governor Ducey Announces $7 Million For Housing And Rental Assistance

PHOENIX⁠ — Governor Doug Ducey today announced $7 million to expand available rental assistance and help keep people in their homes. The funding comes from the Crisis Contingency and Safety Net Fund, established in March through a bipartisan state budget agreement that added $50 million for Arizona’s COVID-19 response.

“Ensuring Arizonans have safe, reliable housing during this pandemic is critical,” said Governor Ducey. “With today’s funding, we are expanding efforts to keep all Arizonans in their homes and helping ensure rents continue to get paid. We will continue to work with our county, city and community partners to get Arizonans impacted by this pandemic the resources and support they need.”

Today’s funding includes: 

• $2 million to provide additional assistance to tenants seeking relief through the Arizona Department of Housing’s Rental Eviction Assistance Program, addressing more than 5,500 applicants seeking assistance within the City of Phoenix; and
• $5 million to replenish the Rental Property Owner Preservation Fund to ensure rental property owners, both small and large, can continue to provide safe and reliable housing to their tenants and prevent pandemic-related foreclosures. 

The $2 million for the Rental Eviction Assistance Program is in addition to the $5M announced earlier this year and the approximate $50 million still available statewide through city, county and non-profit programs. To access these rental assistance programs throughout the state, please click HERE. 

Background
In March, Governor Ducey issued an Executive Order delaying the enforcement of eviction action orders for renters impacted by COVID-19, and extended this order until Saturday, October 31.  The Centers For Disease Control and Prevention’s eviction moratorium remains in place through the end of the year.
Over the past several months:

• Maricopa County Justice Courts, in comparison to last year, have reported a 66.5% decrease in eviction filings between the months of April and September and a 78.5% decrease in the number of writs of restitution being issued;
• The Department of Economic Security has distributed more than $11 billion in unemployment benefits to Arizonans since the start of the pandemic; 
• More than 4,000 households have been assisted through the Arizona Department of Housing’s Rental Eviction Assistance Program; and

All $5 million initially provided to the Rental Eviction Assistance Program have been committed to Community Action Agencies.

UPDATE ON FILING EVICTIONS IN ARIZONA

Based upon publications from the Center for Disease Control and the Arizona Supreme Court, evictions can now be filed even if a declaration has been received.  The cases will either go through judgment, or in some limited courts, may be continued until January at the court’s discretion.  We will update AMA members as we learn which courts are continuing cases, instead of entering judgments.  It appears the intent of the CDC order is to delay writs, but not the cases themselves. 

Given that there are significant penalties for violating the CDC order, the AMA suggests all properties use the attached form when submitting your evictions to your attorney.  This document is one part of ensuring that your managers don’t inadvertently violate the CDC order by taking prohibited actions. Therefore, use this document and proceed with evictions as followings:

1. You can file an eviction if you have not received a declaration, attestation, or similar document from your residents wherein they claim protection under the Order, or
2. You can proceed with an eviction if you have received a signed declaration but you are only proceeding through judgment or you intend to challenge the declaration and seek the writ.  You can challenge a declaration if you believe it’s based upon materially inaccurate statements and you should you should consult with your attorney and corporate office.  If you have received a signed declaration, you can’t proceed to the writ without first challenging it.

Important Update Regarding CDC Eviction Moratorium

On Wednesday (October 14, 2020) the Arizona Supreme Court released Administrative Order 2020-163 clearly allowing property owners to file eviction actions and even allowing property owners to obtain judgments in non-payment of rent cases even if a residents has provided CDC declaration to the owner. 
 
This new Administrative Order comes on the heels of the Centers for Disease Control and Prevention (“CDC”) releasing Frequently Asked Questions clearly allowing for states to administer and property owners to file eviction actions even when a CDC declaration has been filed. 

What this means for rental property owners and managers:

• Property owners can file eviction actions (including those for nonpayment of rent cases) even when residents have provided a CDC declaration.
• Property Owners can challenge any CDC declaration that they have received from their resident.
• If a judgement is granted and a resident has completed a CDC declaration, then the execution of the writ of restitution will be delayed until the expiration of the CDC order (after December 31, 2020)

Most importantly:

• We advise all AMA members to consult with their legal counsel prior to making these determines or updating your policy.
• Property owners may challenge the CDC declaration in limited circumstances; however, we strongly advise all AMA members to consult with their legal counsel if and when challenging any CDC declaration provided by a resident. 
• When challenging a CDC declaration, DO NOT demand or otherwise give the appearance that any information that you are requesting from a resident is required.  Residents are not required to provide any supporting documentation that a rental owner may request.
• Be sure to present your legal counsel with any CDC declaration that was filed.  While the new CDC guidance allows for the processing of evictions, the CDC order does prohibit the actual removal of the resident (writ of restitution) if a CDC declaration was filed. 

Remember any violation of the CDC order (in this case the execution of the writ when a CDC declaration has been filed) could result in severe criminal penalties including a $500,000 fine and up to one year in prison.

Dear AMA Members,
 
As you know, the U.S. Centers for Disease Control and Prevention (CDC), at the direction of the President, filed an order in the Federal Register yesterday to temporarily halt residential evictions to prevent the further spread of COVID-19. All rental housing owners should prepare for the order to go into effect this Friday, September 4.
 
The CDC order will bar evictions of renters in residential housing until December 31, 2020. AMA has put together a summary of the CDC order as well as a resident affidavit form for your residents.   Thanks to AMA member law firms – Law Offices of Scott Clark and Zona Law for assistance.

AMA recommends that all companies implement new policies and procedures for approval of all evictions as any person or organization that violates the CDC order may be subject to up to $500,000 in fines per violation and/or jail time. Enhanced penalties apply if the violation results in death, at the discretion of the U.S. Department of Justice.    
 
We understand AMA members are deeply concerned about the Administration’s actions, and the complexity of the language in the CDC’s order will amplify the strain of operating rental housing and sustaining your businesses during these difficult times. AMA and NAA are in the process of developing operational guidance to assist members in following the requirements of the order. 
 
We also understand that NAA is conferring with legal counsel to understand the enforceability of this measure, how it will interact with existing federal, state, and local requirements, and a number of other ambiguities in the text, such as whether the order applies to eviction filings or is limited to the physical removal of residents (writ). Other outstanding issues include whether housing providers may require proof to support the resident’s declaration; if the declaration applies as an affirmative defense to an eviction action; and how these requirements apply to holdover tenancies, non-renewals, and termination notices. Adding another layer of concern, we realize there may be vastly different interpretations of the language by various Justice Courts and Judges. Without clear guidance from the CDC and the courts, these issues may very well be adjudicated on a case-by-case basis. 

Finally, NAA is developing an advocacy response to this action by the Administration – be assured that all options are on the table. In the immediate term, we will urge Congress and the Administration to return to the negotiating table and appropriate sufficient emergency rental assistance to fill the gap created in thousands of rental housing communities around the nation. The entire NAA membership will be engaged in this effort so be on the lookout for a call to action when Congress returns after Labor Day to add your voice to our efforts on Capitol Hill.
 
AMA is also doing everything possible to support the industry and explore avenues to respond to the challenges that lie ahead. As the situation and our understanding of the order continues to evolve, we will keep you abreast of new developments as we consider paths forward from operational, legislative, public relations, and possibly legal perspectives.  Please watch for virtual education sessions for AMA members next week.

 
Sincerely,
 
Courtney Gilstrap LeVinus
President & CEO

Helpful Links

• AMA Summary on CDC Order
• Resident Affidavit Form
• CDC Declaration 
• CDC Eviction Moratorium Order

Dear AMA Member,

The Governor just released the details of the rental property owners preservation fund HERE.  The Rental Property Owner Preservation Fund (RPOPF), established by the Governor’s Office, provides assistance to rental property owners across the State of Arizona who are facing rental income issues due to the COVID-19 pandemic. A property does not have to be at risk of foreclosure in order to be eligible for this funding. This program utilizes funds from the Emergency Crisis Contingency and Safety Net fund to provide the needed assistance to eligible landlords and property owners, who have faced hardships, directly or indirectly, due to the impact of the coronavirus and are struggling to make their mortgage payments as a result of non-payment from tenants.  

The program’s goal is to aid Arizona’s rental property owners in avoiding foreclosure by assisting with lost rental income due to nonpayment by their tenants. As of now only $5M is available in the fund ($2.5 set aside for larger operators).  We urge all members that have been damaged by unresponsive residents to apply to the fund immediately as it is a first come first serve basis
 

Application Information- What should an application include?  

1. Scope of work narrative: applicants must provide a scope of work that outlines how many units they are requesting funding for, the loss of income, and the steps taken to secure rent payments from renters.  
2. Project timeline: applicants must provide the timeframe for each unit, outlining the months they have not received rental payments. 
3. Copy of lease ledger + attestation form OR Copy of lease agreement: applicants must provide one of these two options per rental unit they are requesting funding for in order to verify the cost of rent per unit. 
4. Any back-up documentation outlining that the tenant was given notice and an opportunity to pay the amount due in full and has not responded and has not paid the rent (ie: 5 day notice or similar). Grantor acknowledges that due to the CARES Act, certain properties have been unable to convey an “intent to terminate lease,” and therefore will accept any notification type of delinquency of payment.
5. Back up documentation of the outstanding unpaid balance per unit: applicants must provide supporting documentation of the outstanding unpaid balance per unit/tenant. If this information is located in the lease ledger, then please specify where. 
6. W9 and ACH payment forms: applicants must submit this information with their application to receive direct deposit payment from the State of Arizona. 

The Governor’s grants team has put together a presentation and will be hosting a meeting for all interested parties to walk through the application process tomorrow morning, August 5 at 9:30am. To join please use this LINK.

Sincerely,
Courtney LeVinus

AMA President & CEO

Dear AMA Member,

It is with great disappointment that I write to you today.  Yesterday, during the Governor’s press conference he announced his intentions to extend the state’s eviction delay order by an additional three months.  You can review the entirety of the order, here.

We will be providing additional analysis and guidance in the next few days. 

Governor Ducey’s decision today to add another 90 days to his eviction moratorium is incredibly disappointing for property owners all over the state. We’re not disappointed because we’re heartless or because we want to see anyone evicted during a pandemic. Rather, we are disappointed because the state’s haphazard, woefully inefficient rental relief initiatives have done virtually nothing to help renters and property owners for going on 120 days now.

As multiple media reports have made clear, nearly $130 million in rental relief funds currently exist to help renters covered by the Ducey moratorium. To date, about $1.2 million has been disbursed to those in need. There is simply no excuse for such ineffective bureaucracy in the midst of a statewide crisis.

Arizona property owners have spent four months advocating for assistance with local communities and the state while patiently waiting for those resources to be deployed. We've worked with tens of thousands of renters to keep a roof over their heads. We’ve helped renters file relief applications, we’ve agreed to payment plans and we’ve refrained from evicting renters impacted by COVID-19. We will continue to work with those in need. We hope at some point very soon those in elected leadership and managing these relief programs do the same. If they continue to fail, not only will we see a rise in evictions come year’s end, but the housing sector may very well come crashing down, dragging with it the Arizona economy.
 

Sincerely,
Courtney LeVinus

AMA President & CEO

Dear AMA Members,

 
Today, during Governor Ducey’s press conference, he announced a new Executive Order to deal with the rising COVID-19 cases in Arizona. You can read the Executive Order in its entirety HERE.  The Executive Order includes new orders that will impact all apartment communities across the state, including:
 
Gyms

• Effective tonight (June 29) at 8:00pm, all gyms, indoor fitness centers and movie theators must be closed until at least July 27, 2020, unless extended.
• In order to reopen after July 27, 2020 (unless the Order is extended), the entity must complete a form as prescribed by the Arizona Department of Health Services (ADHS) that attests that the entity is in compliance with guidance issued by ADHS related to COVID-19 business operations.
• The form must then be posted in a visible public place on the entity’s premises.

 
Pools

• All apartment community pools may continue to be open provided that signage is included at all entrances to the pool reminding people to maintain physical distance and that groups larger than 10 should not congregate.

 
Other Provisions

• Organized public events of the more than 50 people are prohibited unless the event is approved by a city, town or county and only if adequate safety precautions are implemented.

 
For more details, read the full press release HERE.

Sincerely,
Your AMA Team

COVID-19 Resources      Associate Members Who Can Help

Governor Ducey Announces Next Phase of Arizona Recovery

PHOENIX — Governor Doug Ducey today announced that the Stay At Home order in Arizona will be ending on May 15 and replaced by new guidance for the next stage of economic recovery. The new guidance aligns with gating criteria issued by the White House and Centers For Disease Control and Prevention (CDC) and aims to mitigate the risk of COVID-19 resurgence, protect vulnerable populations, and guide the reopening of businesses with enhanced physical distancing and safety measures in place.

Arizona’s new Executive Order, which takes effect on Saturday, May 16, builds on Arizona’s comprehensive efforts to slow the spread of COVID-19 and protect public health, including: ramping up testing availability and frequency; implementing tracking of key health metrics such as reported symptomatic cases and emergency room usage; standing up surge hospital capacity to be used as needed; expanding statewide contact tracing; bolstering supply chains for personal protective equipment for frontline medical workers and emergency responders; implementing enhanced safety protocols to protect those living and working in high-risk facilities such as nursing homes; and providing public health guidance for businesses and individuals to ensure continued physical distancing. 

“Since the start of this pandemic, Arizona has taken a calm and steady approach to protecting health and slowing the spread of COVID-19,” said Governor Ducey. “Today, our hospitals have capacity to provide care to those who need it; our businesses are implementing and adapting to new physical distancing measures; and data shows Arizona is headed in the right direction. It is time to move forward with the next steps of Arizona’s economic recovery — while continuing to make health and safety our number one priority. I’m grateful to all Arizonans for their partnership and cooperation during these trying times. By continuing to follow the data and recommendations of public health officials, we can continue to move forward safely and responsibly together.” 

Governor Ducey also announced today an accelerated plan to test all staff and residents of long-term care facilities as well as individuals within Arizona’s prisons. As part of this plan, the Arizona Department of Health Services will partner with private-sector labs to expand testing to 147 long-term care facilities and provide antibody tests for correctional officers. Additionally, major league sports can resume limited reopening, without fans, this Saturday, May 16.

The Arizona Department of Health Services also released additional guidance for businesses and customers as more industries resume partial operations. This guidance includes:

• Pools, with physical distancing and enhanced sanitation - can reopen Wednesday, May 13 (GUIDANCE)
• Gyms & Fitness Providers, with physical distancing and enhanced sanitation - can reopen Wednesday, May 13 (GUIDANCE)
• Spas, with physical distancing and enhanced sanitation - can reopen Wednesday, May 13 (GUIDANCE)  

While never formally closed, many Places of Worship opted to temporarily change or suspend services in order to follow physical distancing guidelines. As they resume operations, the Arizona Department of Health Services released GUIDANCE for enhanced physical distancing and safety precautions.

View today’s Executive Order HERE. 

View daily Arizona updates HERE.

Dear AMA Members,
 
As we continue to navigate all of the challenges that come with COVID-19, the health, safety, and well-being of our members and staff remain of the utmost importance.  Leadership at the AMA has continued to monitor the situation closely and continue to be encouraged and optimistic about the pandemic.  With that in mind, additional changes have been made to many of our signature events for 2020.  We do not make these decisions hastily and know this may impact your teams.  Please know we intend to proceed forward in a thoughtful and strategic manner and so look forward to the times where we can see you again!  We are hopeful these are the last of the changes we have to make but as the pandemic evolves and our State and National leaders make decisions, we will pivot accordingly.  If you are currently registered for any of the events listed below, your registration will automatically transfer to the new date with nothing needed on your part.  If you are unable to attend on the new date, please reach out to Jonathan Baldenegro for Phoenix events and Lauren Romero for Tucson events. 


June
6/24/2020 – Phoenix Reverse Trade Show, Phoenix Convention Center

July
7/16/2020 – Tucson Reverse Trade Show, Tucson Convention Center
 
August
8/14/2020 – Tribute Awards, Phoenix Convention Center
 
September
9/10/2020 – Phoenix Trade Show, Phoenix Convention Center
9/18/2020 – Tucson Bowl A Thon
9/24/2020 – Phoenix Dinner Meeting, Phoenix Country Club
9/25/2020 – Tucson Golf Tournament, Randolph Dell Urich Golf Course
 
October
10/2/2020 – Perspectives & Projections, Hyatt Regency Phoenix
10/8/2020 – Tucson Trade Show, Tucson Convention Center
10/22/2020 – Tucson Dinner Meeting
10/29/2020 – Tucson Chili Cook Off, Redi Carpet
10/30/2020 – Phoenix Golf Tournament, Starfire Golf Club
 
November
11/12/2020 – Tucson Maintenance Mania, Tucson Convention Center
11/19/2020 – Phoenix Maintenance Mania, Phoenix Convention Center

December
12/8/2020 - Phoenix Dinner Meeting/Holiday Mixer, Phoenix Country Club
  

Thank you for being the best part of the AMA!
Your  AMA Team

Dear AMA Members,
 
Today the Governor issued an Executive Order temporarily delaying writs of restitution from being executed.  Many of you that own or operate residential rental properties in other states have already experienced similar state or local orders.   No one wants to see sick or vulnerable individuals or families evicted in the midst of dealing with a serious health crisis. Many of the Justice Courts around the state have already delayed eviction hearings or have limited filings to immediate only. 
 
The AMA put out a statement to the press saying the AMA supports taking immediate action to protect and support struggling residents during the COVID-19 crisis, but we also want to offer a note of caution. At the same time as many apartment residents are struggling with income loss, Arizona property owners also are tightening their belts in a huge way. These businesses are working hard to meet their monthly obligations: make payroll, pay bank loans and mortgages, and pay their utilities, insurance costs and tax obligations. We will continue to work with Gov. Ducey and state and federal leaders to find a comprehensive solution that addresses all the many impacts of this crisis  – a solution that balances relief for renters with relief for property owners.
 
As you all know we have been working with our State, Federal and local elected leaders to advocate for renter and owner relief.  The Arizona legislature yesterday passed a $50 Million COVID-19 Relief package.  The legislature specifically directed some of those funds to be used for eviction prevention.  The Arizona Department of Housing has also identified potential funds to put towards this effort.  We anticipate the third Federal stimulus package to be approved today or tomorrow which includes direct payments to individuals which will help them make their rent payments. 
 
Yesterday the FHFA also announced the following:

• Fannie Mae and Freddie Mac (the Enterprises) will offer multifamily property owners mortgage forbearance with the condition that they suspend all evictions for renters unable to pay rent due to the impact of coronavirus.
• The eviction suspensions are in place for the entire duration of time that a property owner remains in forbearance.
• The forbearance is available to all multifamily properties with an Enterprise-backed performing multifamily mortgage negatively affected by the coronavirus national emergency.

 
The Arizona Attorney General sent a letter  to all Financial and Lending Institution Serving Arizonans asking them to provide temporary relief and economic certainty to their customers. 
 
Please note that the Executive Order is specific to COVID-19 related situations and does not prohibit an owner or manager from sending notice of non-payment or from filing an eviction, it prohibits the writ of restitution from being executed. 
 
Last week, the AMA Board of Directors asked that all AMA members work with their residents on a case by case basis, including: waiving late fees and structuring payment plans. 
 
Be on the lookout for a member guidance later today or tomorrow regarding Governor Ducey’s executive order.  We will all get through this but it will take everyone working together to do what is best for Arizona and our citizens.
 
Regards,
Courtney LeVinus
AMA President & CEO

Relief Coming to Arizona Renters

Over the last week AMA has been working with the Governor’s office, Arizona Legislators, and AZ Department of Housing to identify funds for rental assistance and eviction prevention.  We are so pleased to report that the Legislature approved a bipartisan $50 Million dollar appropriation to the Crisis Contingency and Safety Net Fund to be used for:

1. Housing assistance, including payments to prevent eviction or foreclosure;
2. Monies for entities to provide services for homeless persons, including shelter, food, clothing and transportation;
3. Economic assistance to small businesses with fewer than 50 employees, nonprofit organizations and health care providers; and
4. Monies for food bank operations.

The money above is in addition to the $5M that the AZ Dept of Housing has identified for rental assistance and eviction prevention.  We are still waiting for details from the ADOH on how the money will be deployed, but we do know it will go through the Community Action Agencies throughout the state.  If you have residents that are concerned about making their April rent they should start contact the Community Action Agencies. 

We will continue to work with our Federal Delegation to secure more funding for the following as part of the third stimulus package:

1. Direct, Sustained Assistance for Renters: COVID-19 will cause financial challenges for many renters. Congress should provide short-term financial assistance for renters, expand unemployment income for individuals who lose their job because of COVID-19 and exclude unemployment income from taxes for 2020.
2. Forbearance on Multifamily Mortgages and other Financial Obligations: Most rental properties are owned by individuals and small businesses that must pay mortgages, utilities, payroll, insurance and taxes. If residents cannot pay their rent because of COVID-19, then owners are at risk of not meeting their obligations.
3. Guardrails for Eviction Moratoria: We caution policymakers against blanket eviction moratoriums. However, if imposed, any federal moratorium on evictions should be targeted to COVID-19-related circumstances and include the following guardrails:
1. A maximum 30-day time frame with a possible 15-day extension should the situation warrant it.
2. No application to proceedings filed prior to or not a material result of COVID-19.
3. Preserve the right of housing operators to evict for other lease violations such as property damage, criminal activity or endangering other community residents.
4. Require residents to officially notify the property owner of temporary financial hardship as a result of COVID-19; request temporary assistance/relief; and acknowledge that contractual terms of the lease remain in effect.
4. Critical Tax Relief for Individuals and Affected Industries:

• Payroll Tax Cut: Extra funds for taxpayers to absorb increased cuts resulting from COVID-19 by reduced payroll taxes.
• Unemployment Compensation Exclusion: Stretch unemployment income for individuals who experience job loss.
• Net Operating Loss Carryback: Ease cash-flow challenges for businesses by allowing net operating losses generated in 2020 to be carried back for three years.

As the funds become available through the Department of Housing we will keep you posted so you can let residents know how to access the funds.

 Emergency Preparedness Guide

Dear AMA Members, 

We apologize in advance for all the emails but the COVID-19 outbreak and subsequent spread represents a threat to the rental housing market in Arizona and across the nation. In an effort to help Arizona Multihousing Association members be as prepared as possible we will continue to share information as it is made available.
 
HUD Notice / Clarification
Yesterday the POTUS announcement to halt all evictions created a lot of confusion for both residents and managers. Please see the link above that clarifies the announcement that the eviction and foreclosure moratorium only applies to single family homeowners with FHA Insured Mortgages.
 
AZ Legislature to Consider a $10 Million Appropriation to the AZ Dept of Housing for Eviction Prevention
Today Senator Heather Carter will introduce an amendment to SB1692 to provide $10 million dollars to the Arizona Department of Housing (AZDOH) to be used to help Arizona Renters facing eviction as a result of COVID-19.  Rep. Daniel Hernandez will introduce the identical amendment in the House for HB2909. It would be great if your Arizona Senator and both of your Arizona Representatives received emails of support from you and your residents.
LINKS: House & Senate Contacts List | Find Your Legislator
 
Eviction Prevention Resources for Residents
Please see the two links below from AZDOH.  Residents that are concerned they do not have the resources to pay their April 1 rent should call immediately.  While resources might not yet be available they should ask the agency to put them on a list.  AMA is working hard to identify state and federal resources to assist residents in this time of crisis. 
LINKS: Eviction Prevention Assistance | Community Action Agencies
 
AMA Emergency Preparedness Guide
The AMA has created this 2020 Emergency Preparedness Guide to help you manage the pandemic from an informational perspective, an operational perspective and in terms of crisis communications and messaging.

FAQ
In such a fast-changing situation, we will do everything possible to keep you abreast of the latest relevant information and to answer your questions, this document includes some of the most common questions received from attorney member Christopher Walker with the Law Offices of Scott Clark.

---

While the AMA office is physically closed the team is working remotely and we are available during business hours. All phone calls will be forwarded and emails will be checked frequently.

If you need to reach us, please use the following contact information:
Phone Number: (602) 296-6200
Email: info@azmultihousing.org  
For specific staff information, please visit our staff directory HERE.