Landlords Sue for Billions After Pandemic Eviction Moratorium

When the pandemic hit, Matthew Haines, a Texas landlord with 240 rental units, quickly realized the crisis would hit his business hard. But nothing prepared him for the federal eviction moratorium that barred him from evicting tenants who stopped paying rent. The Centers for Disease Control and Prevention’s (CDC) moratorium lasted from September 2020 through July 2021, effectively freezing landlords out of their rental income for nearly a year.

Haines and more than 1,500 other property owners have now taken the federal government to court, arguing that the CDC’s moratorium violated the Fifth Amendment by denying them compensation for their losses. Their lawsuit claims the moratorium caused $57 billion in damages nationwide, with some landlords losing millions. After losing in the Court of Federal Claims in 2022, they won on appeal and are currently negotiating a settlement with the Justice Department, seeking up to $1.5 billion — a fraction of the total 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,” Haines said. His goal is not only personal vindication but also to recover some of the money his investors lost over the past six years.

The federal eviction moratorium was one of the most controversial policies of the pandemic, designed to keep millions of tenants housed and slow the spread of COVID-19. However, tenant advocates argue landlords were already compensated through billions in rental assistance programs. They emphasize that eviction bans saved countless families from homelessness during an unprecedented crisis.

Landlords paint a different picture: unable to collect rent, many took on debt, delayed repairs, laid off staff, or sold properties. The moratorium’s effects linger, with eviction backlogs and tighter tenant screening making the rental market more difficult for owners.

The Supreme Court ultimately struck down the CDC’s authority to impose the ban without explicit congressional approval, ending the federal moratorium in July 2021. Meanwhile, many states and cities imposed their own, longer-lasting bans.

Haines describes the moratorium as “terrifying,” a massive financial blow that threatened his decades-long real estate career. His lawsuit and others like it raise urgent questions about the balance between public health emergency powers and property rights — and who pays when government policies force businesses to absorb massive losses.

As the government weighs a settlement, the fight over accountability and compensation for pandemic policies is far from over. For landlords like Haines, the hope is that the courts will recognize the financial damage inflicted and provide some measure of justice. For tenants and public health advocates, the priority remains preventing homelessness and protecting vulnerable populations in future crises.