*Update: On Thursday, July 9, 2020 Gov. Tom Wolf signed an executive order barring home foreclosures and evictions through August. 31, 2020.

The prohibition against evictions of non-paying tenants and defaulting mortgagors within the Commonwealth has been extended through July 10, 2020 by an Order signed by Governor Tom Wolf on May 7, 2020.  In a press release, Governor Wolf explained, “Ensuring that people can remain in their homes will help them to better protect their loved ones.  It gives families the comfort of knowing they will have a place to live while all of us work together to fight COVID-19 and prepare to move Pennsylvania forward.”  Attorney General, Josh Shapiro showed his support for Governor Wolf’s stay of eviction and foreclosure proceedings and stated, “We know it’s critical for public health, and for our economic recovery, that people stay in their homes during this emergency.   This order gives people struggling with lost income something they can count on — a roof over their heads.”

On March 6, 2020, Governor Wolf signed a disaster emergency order.  Shortly thereafter, on March 18, 2020 the Pennsylvania Supreme Court placed a moratorium on tenant evictions and mortgage foreclosure actions through April 3, 2020.  The Supreme Court’s March 18, 2020 Order was amended twice to suspend all procedures related to the dispossession of property through May 11, 2020.

On May 7, 2020, in conjunction with the extension of Pennsylvania’s Stay at Home Order, Governor Wolf stayed the notice requirements for certain actions related to the dispossession of property and prohibiting eviction and foreclosure proceedings through July 10, 2020.  Specifically, the May 7, 2020 Order states:

1. As of May 11, 2020, all notice requirements mandated by the Pennsylvania Loan Interest and Protection Law, 41 P.S. § 101, et seq. (Act 6) and the Homeowners Emergency Assistance Act, 35 P.S. § 1680.41, et seq. (Act 91) are stayed for 60 days. All foreclosure actions requiring compliance with Act 6 and Act 91 cannot commence for 60 days until July 10, 2020.
2. As of May 11, 2020, all notice requirements mandated by the Pennsylvania Landlord and Tenant Act of 1951, 68 P.S. § 250.101, et seq. (Landlord Tenant Act) and the Manufactured Home Community Rights Act, 68 P.S. § 398.1, et seq. (MHCR Act) are stayed for 60 days. All tenant eviction proceedings requiring compliance with the Landlord Tenant Act and the MHCR Act cannot commence for 60 days until July 10, 2020.

In the May 7, 2020 Order, Governor Wolf explained how extending the eviction and foreclosure moratorium will help decrease the risk of the spread of COVID-19 through the Commonwealth by limiting the movement and displacement of individuals from their homes.

It is important to note, that the May 7, 2020 Order only stays mortgage foreclosure actions subject to Act 6 and Act 91.  Mortgages held on non-owner occupied residential properties which secure loans in excess of Act 6 and Act 91’s current base figures are not subject to Act 6 or Act 91 and therefore, foreclosure proceedings on these properties are not stayed by the Governor’s May 7, 2020 Order.

The current eviction moratorium will likely have a significant financial impact on landlords who are providing housing to tenants who have not paid April, May, June, and July rent.  While landlords may file eviction complaints during the moratorium period, eviction proceedings will not be scheduled until at least mid-July and landlords will likely not be able to evict delinquent tenants until September.  Landlords may be forced forego rental payments for at least six months while still being required to pay the mortgage, property taxes, and other repair expenses on their rental properties.

For further information or assistance, contact Lamb McErlane PC, 610-430-8000.

Katherine (Katie) LaDow is an associate in the litigation department at Lamb McErlane PC. She concentrates her practice in the areas of state and federal civil litigation, municipal litigation, government liability & civil rights defense, personal injury, workers compensation and landlord / tenant work.  She represents individuals, small and large businesses and municipalities in a wide array of civil, employment and tort-based disputes. kladow@lambmcerlane.com. 610-701-3261.

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