Posted by 15 April 2020
With many working losing their jobs or seeing their hours cut, some activists and politicians are calling on states and the federal government to suspend or even cancel rent or mortgage payments. Critics, however, say this policy is short-sighted and will cause big problems in the long-run.
Politicians across the political spectrum are proposing that government step in and suspend or cancel rent payments. Republican Senator Rick Scott of Florida wants federal action to postpone rent payments for 60 days if a renter has an income under $75,000. The Seattle City Council passed a resolution unanimously asking Washington Governor Jay Inslee and President Trump to cancel payments for rent and mortgage. The city council in Alexandria, Virginia, may also consider a similar resolution.
Under these plans, either the state or federal government would suspend or cancel the payment of rent or mortgages for as long as the coronavirus emergency lasts. There has been no action on these proposals yet, but state and local governments have imposed moratoriums on evictions and foreclosures.
Supporters argue that with so many people losing jobs, it would be unfair to expect them to pay rent during this time. They say that failing to stop rent payments could lead to a wave of homelessness. They note that many people who are paying rent have lower incomes, so they are especially hard hit by the economic consequences of the coronavirus crisis.
There are many people who are pushing back against this idea, however. They point out that there is little legal authority to cancel the payment of either rent or mortgages, even in an emergency. They also note that canceling these payments would cause harm to either the owner or the rental property or the holder of the mortgage, which could have severe ripple effects throughout the economy.
Do you support canceling the payment of rent and mortgages during the coronavirus crisis?