Updated: 30-Day CARES Act Notice Upheld by Colorado Supreme Court

Updated May 24, 2023

 

The Colorado Supreme Court has recently maintained the 30 Day CARES Act notice requirement.

Although the CARES Act has expired, the provision requiring 30 Day notice of eviction contained within the CARES Act is still being enforced.  A recent decision by the Colorado Supreme Court has reinforced that the CARES Act notice requirement remains in effect despite the expiration of the act itself.

 

A lower Colorado court previously ruled that the CARES Act 30 Day Notice requirement was temporary.

Earlier this year, a Colorado justice court ruled that the CARES Act 30 Day notice requirement was temporary in nature, and though not expressly indicated, had already expired along with other provisions of the CARES Act. In the case, a Colorado landlord had previously served a “10-day Demand for Rent or Possession” to a resident, despite being considered “covered” under the CARES Act. The resident argued that the court must dismiss the case due to the landlord’s requirement to serve a 30 Day Notice. The court disagreed, holding that “Section 9058 [of the CARES Act] is titled ‘Temporary Moratorium of Eviction Filings,’ highlighting the temporary nature of the remedies provided.” The court argued that the notice requirement was a temporary requirement that expired along with the eviction moratorium in July of 2020.

 

In light of the decision, the resident filed an appeal with the Colorado Supreme Court. Several housing advocates worked to support the position of the lower court and filed a brief into the Supreme Court’s case, but despite these efforts, the Supreme Court ultimately ruled that the 30 Day CARES Act notice requirement was still in effect. 

 

Unfortunately for housing providers nationwide, this decision sets precedent for future challenges to the continuation of the CARES Act 30 Day notice requirement.

 

How do I know if I am required to serve a 30 Day CARES Act Notice?

Any properties that are supported by government funding (such as HUD programs and Low Income Housing Tax Credits) are considered CARES Act properties.  Properties with federally backed mortgages (e.g., FHA, Fannie Mae, and Freddie Mac), are also considered CARES Act properties. 

 

What could happen if I don’t comply with the 30 Day requirement?

If your property chooses not to comply with the 30 Day notice requirement, you could face denial of your eviction actions on the basis of improper notice. Lenders may also consider your non-compliance as default under the terms of your loan. Noncompliance also makes the property susceptible to class action lawsuit liability and/or enforcement actions from government agencies. Consult your legal counsel for guidance on this issue.

 

If you are unsure of whether your property is considered a CARES Act “covered” property and required to serve 30 Day Notices, please consult your legal counsel or our office before proceeding.

 

The NAA has listed the 30 Day Notice issue as one of its top three federal priorities in 2023, and we will continue to provide you with updates on this issue as they arise.

 

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