Full Breakdown
Landlords Sue Over CDC Eviction Moratorium, Claim $57 Billion Losses
5/4/2026, 1:27:04 AM
The Lawsuit and Its Claims
More than 1,500 property owners have filed a federal suit alleging that the Centers for Disease Control and Prevention’s (CDC) eviction moratorium—enforced from September 2020 through July 2021—violated the Fifth Amendment by denying them compensation for lost rent. Plaintiffs contend the ban caused $57 billion in industry losses and seek up to $1.5 billion in restitution. After an initial defeat in the Court of Federal Claims in 2022, the group won on appeal and is now in settlement talks with the Justice Department.
Legal and Policy Background
The moratorium was instituted as a public-health measure during the COVID-19 pandemic. It ended after the Supreme Court ruled the CDC lacked authority to impose the ban without congressional approval. While 43 states and numerous cities enacted longer bans, the federal prohibition remains the focal point of the current litigation.
Key Plaintiffs and Their Losses
- Matthew Haines – Texan landlord of three communities (240 units) in Arlington and Irving, Texas, reports losses exceeding $1 million.
- Liz Leone – Owner of 52 Las Vegas apartments, says the ban cost her over $250,000, forcing a $60,000 SBA loan.
- Rick Jones – Vice chairman of Management Services Corporation (4,000 units in Virginia) lost more than $230,000 in unpaid rent.
- Creighton Magid – Attorney for the plaintiffs, frames the financial burden as a governmental responsibility.
Economic Impact and Data
A National Rental Home Council survey released weeks after the moratorium’s end found half of small landlords had tenants who missed rent and a third were selling or planning to sell properties. The lawsuit cites individual losses ranging from thousands to $14.5 million. Tenants in the first four months of the ban numbered over 10 million delinquent renters. Federal emergency rental assistance totaled $46.5 billion, but landlords argue the funds were delayed, unevenly distributed, and insufficient to offset cash-flow deficits.
Official Statements & Responses
The Justice Department declined to comment on the pending case. The Supreme Court’s decision underscored the CDC’s lack of statutory authority to enforce the eviction ban without congressional action. No official CDC response appears in the source material.
Criticism & Opposition
Tenant advocates maintain the moratorium prevented a wave of evictions. Eric Dunn, director of litigation for the National Housing Law Project, argues landlords “were able to collect rent and sell their properties during the moratorium.” UCLA Fielding School of Public Health’s Kathryn Leifheit notes that eviction bans “were a powerful intervention to keep people in their homes,” citing a JAMA Network Open study that projected a 20 % higher homelessness rate without state bans.
On-the-Ground Perspectives
Dulcee Barnes, a 28-year-old former restaurant worker in Miami, and her roommates avoided eviction thanks to the ban, describing the relief as “breathing room” that prevented “packing up within 24 hours.” Their experience illustrates the policy’s direct impact on vulnerable renters.
Conflicting Reports & Gaps
Landlords claim $57 billion in losses, while federal rental assistance delivered $46.5 billion—raising questions about the net financial effect. Eric Dunn’s assertion that landlords could still collect rent contrasts with plaintiffs’ testimony of massive cash-flow deficits. The Justice Department’s silence leaves the settlement amount uncertain.
Verbatim Quotes
- “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, landlord
- “But when the government imposes this type of moratorium, the financial burden should be borne by the government, not individual property owners.” — Creighton Magid, plaintiff’s attorney
- “were a powerful intervention to keep people in their homes,” — Kathryn Leifheit, assistant professor, UCLA Fielding School of Public Health
- “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 Miami tenant
What’s Next
Settlement negotiations between the plaintiffs and the Justice Department are ongoing, with no public timeline. Landlords report continued caution in tenant screening and a reluctance to rent to low-income applicants, citing longer eviction processes as a lasting legacy of the moratorium.