News

New Legislation Affecting the Multi-Housing Industry

The COVID-19 pandemic left many people without their jobs and then in danger of losing their housing. The federal government stepped in and passed the CARES Act in 2020, which put legal guidelines in place to keep tenants in their homes. However, at the end of 2020 an estimated 15% percent of all renters were behind on their payments with an estimated 12 million renters owing an average of $5,850. Where did that leave landlords? For Northern Virginia Apartment Association (NVAA) members who have tenants behind on rent, they are typically $5,000-$10,000 behind.

Since the CARES Act was passed, other new legislation impacting both tenants and landlords has recently gone into effect or will soon go into effect beginning July 1, 2021. NVAA recently held their eagerly-anticipated webinar—Legislative Update with Chip Dicks. This annual legislative event is always highly-anticipated but was even more so this year given so many changes. 

NVAA lobbyist Chip Dicks led the session covering amendments to existing laws, impactful changes to the state budget and important new legislation signed into law this month. He provided a much-needed in-depth look into the changes impacting the multifamily housing industry. 

With the pandemic continuing, albeit on a downturn, the Virginia Legislature has introduced new and amended existing legislation to be tenant-focused so the need to understand and navigate these new laws and requirements fall on landlords. 

Key takeaways:

• VA Budget—the new change to the budget requires landlords with dwellings of 4 units or less will now have to provide tenants with a 14-day notice of unpaid rent, instead of a 5-day notice.
• Virginia Rental Relief Program (RRP)—the program is now more streamlined, eliminating several cumbersome steps and has reduced the required documentation needed. Landlords are now able to fill out applications for delinquent tenants who will have to sign the application. This will now allow the landlord to be paid directly under the assistance program. The program currently has a backlog of 30,000 applications that have not been processed.
• Consumer Financial Protection Bureau (CFPB)—the Bureau has mandated that landlords/debt collectors must provide written notice to tenants of their rights under the eviction moratorium and prohibits debt collectors from misrepresenting tenants’ eligibility for protection. The CFPB has provided sample language for COVID-19 Tenant Eviction Protection to be incorporated into the notice.
• Other areas—the webinar also covered issues currently being discussed in the legislature such as emergency services, affordable and market-rate housing, and amendments to the Virginia Fair Housing Law.

The mission of NVAA is to be the leader in the residential rental industry of Northern Virginia. NVAA provides legislative and regulatory representation and communicate current trends and issues. NVAA fulfills our mission through continued legislative efforts, training programs and member communications, providing networking opportunities and more to help members reach their professional goals. For more information, visit www.nvaa.org.