May 2025 | Page 47

APARTMENT ADVOCATE
NATIONAL APARTMENT ASSOCIATION

Washington Supreme Court Sides with Housing Provider on CARES Act Notice Interpretation

WASHINGTON SUPREME COURT NARROWS CARES ACT NOTICE REQUIREMENT TO NONPAYMENT OF RENT.

The Coronavirus Aid, Relief, and Economic Security Act( CARES Act) was enacted by Congress in March 2020. The CARES Act included a temporary, 120-day eviction moratorium related to the nonpayment of rent and a 30-day notice to vacate requirement prior to filing evictions for covered properties. The question of whether the 30-day notice to vacate requirement was intended to be temporary remains a contested issue within the judicial system.

CASE BACKGROUND
In January 2023, the King County Housing Authority( KCHA) served a resident with a three-day notice to vacate based on several alleged criminal conduct and nuisance violations. When the resident’ s family had not vacated their unit following the notice period, KCHA subsequently filed a complaint for unlawful detainer. The King County Superior Court denied the unlawful detainer petition because KCHA failed to provide the 30- day notice to vacate required under the CARES Act, as the property was a“ covered property.” The eviction action was dismissed, and KCHA appealed.
As KCHA’ s appeal was pending, another case, Pendleton Place, LLC v. Asentista, was being decided on in Division II of the Washington Court of Appeals. The housing provider, Pendelton Place, LLC, similarly served a resident with several notices to vacate based upon an alleged material breach of the terms of their lease. Pendleton Place, LLC argued that the 30-day notice to vacate only applies to rent nonpayment evictions. They argued that issuing three, 10-day notices to vacate fulfilled the CARES Act requirement, as they waited 30 days after the last 10-day notice before filing the unlawful detainer action. The trial court ruled in favor of Pendleton Place, LLC,
www. aamdhq. org granting the housing provider possession of the resident’ s unit. The Court of Appeals reversed the trial court’ s decision and held that the CARES Act notice to vacate applies to all evictions.
COURT’ S RULING
The Washington Court of Appeals was divided, Division II deciding the CARES Act 30-day notice applies to all evictions and Division I holding that the Act’ s notice provision only applies to rent nonpayment evictions. The Washington Supreme Court upheld the latter, ending the state-level appellate court split. The Washington Supreme Court emphasized the intention of the CARES Act was to provide economic support“ during an emergency situation, not to alter the general eviction laws of every state.”
The court highlighted in its opinion,“ we must interpret a statute’ s terms in the context … in which they appear, not in isolation.” Emphasizing KCHA’ s assertion that the statute must be read in conjunction with its subsections that refer to the specific limitation to nonpayment of rent. The court also highlighted the relationship between section headings and their subsections, noting that section headings may often be referred to as a source of legislative intent. Significantly, the notice provision is in the section
specifically titled“ Temporary moratorium on eviction filings.” 15 U. S. C. § 9058, furthering the position that the 30-day notice was intended to be temporary support during the COVID-19 crisis.
OTHER STATE CARES ACT RULINGS
Most recently, the Iowa Supreme Court unanimously reversed two lower state court decisions, holding that not only did the notice to vacate provisions of the CARES Act lapse, but the 30-day notice requirement only applies to evictions due to the nonpayment of rent. This decision is the first of its kind and a major win for housing providers in Iowa.
HOW DOES THIS IMPACT ME?
For housing providers in Washington, the CARES Act 30-day notice to vacate requirement applies exclusively to evictions stemming from rent nonpayment. Although this decision is not binding in other jurisdictions, it may serve as persuasive authority should similar cases arise in other state courts. Housing providers should continue to seek the advice of legal counsel when determining what notice requirements are applicable to their properties, as enforcement of the CARES Act notice to vacate varies from state to state.
45 | TRENDS MAY 2025