Landlords Seek $1.5 Billion Compensation After Pandemic Eviction Moratorium

During the height of the COVID-19 pandemic, a federal eviction moratorium barred landlords from evicting tenants who missed rent payments, leaving many property owners facing severe financial losses. Matthew Haines, a Texas landlord, is among over 1,500 plaintiffs suing the federal government, claiming the moratorium violated their constitutional rights and seeking billions in compensation.

The moratorium, intended to protect tenants during a public health crisis, sparked fierce debate over its economic impact on landlords and the rental market. As settlement talks with the Justice Department unfold, the case highlights the ongoing tension between public health measures and property owners’ rights, with lasting effects on the rental housing industry.

The Lawsuit: Challenging the CDC’s Authority and Financial Toll

More than 1,500 landlords, including Matthew Haines who lost over $1 million, filed a federal lawsuit arguing the CDC’s eviction moratorium infringed on their Fifth Amendment rights by denying compensation for lost rent. After an initial defeat, the plaintiffs won on appeal and are now negotiating a potential $1.5 billion settlement with the Justice Department—only a fraction of the estimated $57 billion industry-wide losses.

“It’s important for us to stand up when a group like the CDC unilaterally, functionally, decides that they have a right to oversee our business,”—Matthew Haines, Texas landlord

Economic Fallout: How the Moratorium Reshaped Landlords’ Businesses

Landlords nationwide faced mounting debts, staff layoffs, delayed repairs, and in some cases, were forced to sell properties. Many report that the moratorium’s effects linger, with stricter tenant screening and longer eviction processes. A survey found half of small landlords had tenants missing rent, and a third sold or planned to sell properties shortly after the moratorium ended.

• Inability to collect rent led to cash flow crises
• Increased debt and borrowing to cover expenses
• Delayed property maintenance and repairs
• Heightened tenant screening and risk aversion
• Some landlords exiting the rental market entirely

“I was definitely questioning whether I would survive,”—Liz Leone, Las Vegas landlord

Tenant Advocates Defend Moratorium as Lifeline During Crisis

Housing advocates argue the eviction bans were crucial in preventing homelessness and curbing COVID-19 spread. Studies show eviction rates spiked after the moratorium ended, and federal rental assistance programs delivered tens of billions to landlords, offsetting losses. Tenants like Dulcee Barnes credit the moratorium with providing vital breathing room during job losses.

“It gave us breathing room. It took away the fear of having to possibly pack up within 24 hours and live in somebody’s car or couch surfing,”—Dulcee Barnes, former tenant

The Road Ahead: Balancing Landlord Rights and Tenant Protections

As settlement talks continue, landlords seek financial redress while grappling with the moratorium’s lasting impact on rental practices. Increased tenant screening and longer eviction timelines have reshaped the market, often disadvantaging low-income renters. The case underscores the challenge of balancing public health priorities with property owners’ rights in future crises.

“Most property owners and managers realize that it’s more important to keep that unit vacant than to put a bad resident in. That’s probably what the eviction moratorium reinforced,”—Rick Jones, Virginia property manager