Federal Disaster Housing Stability Act of 2025

Bill Number

H.R. 5110

Origin Chamber

House

Congress

119th Congress, Session 1

Status

Introduced

Latest Action

2025-09-03: Referred to the House Committee on Financial Services.

Last Updated

2025-09-06T07:38:22Z

AI-Generated Summary

Purpose

The Federal Disaster Housing Stability Act of 2025 aims to protect tenants and homeowners from eviction and foreclosure during declared disasters or emergencies, ensuring housing stability in affected areas by imposing temporary moratoriums on these actions.

Key Provisions

• Eviction Moratorium (Section 2): For 120 days starting from a disaster declaration, landlords or property owners of "covered dwellings" (rented homes, including those without a formal lease) in the disaster area cannot:
• File court actions to evict tenants for nonpayment of rent or fees.
• Charge late fees, penalties, or other costs related to nonpayment.
• Raise rent prices, including through post-moratorium fees.
• Block tenants who temporarily relocated due to the disaster from returning or require re-screening for eligibility.
• Physically remove tenants.
• Additionally, notices to vacate cannot be issued during the moratorium and must provide at least 30 days' notice afterward.
• Foreclosure Moratorium (Section 3): For 6 months starting from a disaster declaration, mortgage servicers cannot initiate or advance foreclosure processes (judicial or non-judicial), schedule sales, seek court orders, or evict via foreclosure on occupied properties in the disaster area. This does not apply to vacant or abandoned properties.
• Definitions (Section 4): Key terms include:
• Covered dwelling: Any occupied residential unit, such as houses or apartments, under a lease or occupiable without one under local law.
• Disaster: Presidentially declared national emergencies, major disasters, or state/local/tribal declarations.
• Disaster area: Any location covered by the disaster declaration.
• Covered mortgage loan: Consumer loans secured by 1- to 4-unit residential properties (e.g., homes, condos, co-ops), excluding temporary construction loans or open-end credit plans like most credit cards (though reverse mortgages are included).
• Applicability (Section 5): The Act applies to disasters declared on or after the date of enactment, including those already in effect.

Significant Changes to Existing Law

This legislation introduces mandatory federal moratoriums on evictions and foreclosures tied to disaster declarations, which were previously handled through temporary executive actions (e.g., during the COVID-19 pandemic under the CARES Act). It expands protections beyond federal declarations to include state, local, and tribal ones, and standardizes durations (120 days for evictions, 6 months for foreclosures) without requiring additional agency rulemaking. Unlike prior laws, it explicitly prohibits rent increases and return barriers during crises, filling gaps in emergency housing protections.

Potential Impacts

• On Citizens: Tenants and mortgaged homeowners in disaster areas gain temporary relief from housing loss due to financial strain from events like hurricanes or floods, potentially reducing homelessness and displacement. However, it may delay rent or mortgage payments, leading to backlogged debts post-moratorium.
• On Government Agencies: Federal agencies like the Department of Housing and Urban Development (HUD) or Federal Emergency Management Agency (FEMA) may need to coordinate enforcement, monitor compliance, or provide guidance to states, increasing administrative workload. State courts and local housing authorities could see reduced eviction/foreclosure filings during moratoriums.
• On International Relations: No direct impacts, as the Act focuses on domestic housing policy.
• Broader Effects: Could stabilize communities by keeping residents in place for recovery efforts, but might strain rental markets if landlords face uncollected rents without federal aid.

Main Stakeholders Affected

• Tenants and Renters: Primary beneficiaries, protected from sudden eviction during disasters.
• Homeowners with Mortgages: Shielded from foreclosure on occupied properties, aiding those facing disaster-related hardships.
• Landlords and Property Owners: Restricted in pursuing evictions or rent adjustments, potentially facing financial losses without specified compensation.
• Mortgage Servicers and Lenders: Limited in foreclosure actions, which could delay recoveries but encourage forbearance options.
• State, Local, and Tribal Governments: Involved in declaring disasters and enforcing moratoriums, with possible shifts in court workloads.
• Federal Agencies (e.g., HUD, FEMA): Responsible for oversight and integration with existing disaster relief programs.

Notable Legal, Constitutional, or Political Implications

• Legal: The Act may invite challenges under the Fifth Amendment's Takings Clause, as temporary restrictions on property rights (e.g., delaying evictions) could be argued as uncompensated takings, though courts have upheld similar COVID-era moratoriums as valid emergency measures. It aligns with the Fair Housing Act's definitions but requires coordination with state landlord-tenant laws, potentially leading to preemption disputes.
• Constitutional: Raises questions about federalism, as it incorporates state-level declarations into federal protections, balancing national standards with local authority. No direct free speech or due process issues, but enforcement could involve judicial review of disaster declarations.
• Political: Positions Congress as proactive on housing equity in crises, appealing to advocates for vulnerable populations, but may draw opposition from real estate and banking interests concerned about financial risks. If enacted, it sets a precedent for statutory rather than ad-hoc emergency responses, influencing future disaster policy debates.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Cherfilus-McCormick, Sheila [D-FL-20]

Cosponsors (4)

Rep. Chu, Judy [D-CA-28], Rep. Carson, André [D-IN-7], Rep. Thompson, Bennie G. [D-MS-2], Del. Norton, Eleanor Holmes [D-DC-At Large]

Recent Actions

• 2025-09-03: Referred to the House Committee on Financial Services.
• 2025-09-03: Introduced in House
• 2025-09-03: Introduced in House

Bill Versions

• Federal Disaster Housing Stability Act of 2025 — issued 2025-09-03 — PDF (6 pages)