Download as pdf or txt
Download as pdf or txt
You are on page 1of 4

EXECUTIVE ORDER

No. 2020-134

Eviction diversion program for COVID-19-related debtors

Rescission of Executive Order 2020-118

The novel coronavirus (COVID-19) is a respiratory disease that can result in serious illness
or death. It is caused by a new strain of coronavirus not previously identified in humans
and easily spread from person to person. There is currently no approved vaccine or antiviral
treatment for this disease.

On March 10, 2020, the Department of Health and Human Services identified the first two
presumptive-positive cases of COVID-19 in Michigan. On that same day, I issued Executive
Order 2020-4. This order declared a state of emergency across the state of Michigan under
section 1 of article 5 of the Michigan Constitution of 1963, the Emergency Management Act,
1976 PA 390, as amended (EMA), MCL 30.401 et seq., and the Emergency Powers of the
Governor Act of 1945, 1945 PA 302, as amended (EPGA), MCL 10.31 et seq.

Since then, the virus spread across Michigan, bringing deaths in the thousands, confirmed
cases in the tens of thousands, and deep disruption to this state’s economy, homes, and
educational, civic, social, and religious institutions. On April 1, 2020, in response to the
widespread and severe health, economic, and social harms posed by the COVID-19
pandemic, I issued Executive Order 2020-33. This order expanded on Executive Order
2020-4 and declared both a state of emergency and a state of disaster across the State of
Michigan under section 1 of article 5 of the Michigan Constitution of 1963, the Emergency
Management Act, and the Emergency Powers of the Governor Act of 1945. And on April 30,
2020, finding that COVID-19 had created emergency and disaster conditions across the
State of Michigan, I issued Executive Order 2020-67 to continue the emergency declaration
under the EPA, as well as Executive Order 2020-68 to issue new emergency and disaster
declarations under the EMA.

Those executive orders have been challenged in Michigan House of Representatives and
Michigan Senate v. Whitmer. On May 21, 2020, the Court of Claims ruled that Executive
Order 2020-67 is a valid exercise of authority under the Emergency Powers of the Governor
Act but that Executive Order 2020-68 is not a valid exercise of authority under the
Emergency Management Act. Both of those rulings are being challenged on appeal.

GEORGE W. ROMNEY BUILDING • 111 SOUTH CAPITOL AVENUE • LANSING, MICHIGAN 48909
www.michigan.gov
PRINTED IN-HOUSE
On June 18, 2020, I issued Executive Order 2020-127, again finding that the COVID-19
pandemic constitutes a disaster and emergency throughout the State of Michigan. That
order constituted a state of emergency declaration under the Emergency Powers of the
Governor Act of 1945. And, to the extent the governor may declare a state of emergency and
a state of disaster under the Emergency Management Act when emergency and disaster
conditions exist yet the legislature had declined to grant an extension request, that order
also constituted a state of emergency and state of disaster declaration under that act.

The Emergency Powers of the Governor Act provides a sufficient legal basis for issuing this
executive order. In relevant part, it provides that, after declaring a state of emergency, “the
governor may promulgate reasonable orders, rules, and regulations as he or she considers
necessary to protect life and property or to bring the emergency situation within the
affected area under control.” MCL 10.31(1).

Nevertheless, subject to the ongoing litigation and the possibility that current rulings may
be overturned or otherwise altered on appeal, I also invoke the Emergency Management
Act as a basis for executive action to combat the spread of COVID-19 and mitigate the
effects of this emergency on the people of Michigan, with the intent to preserve the rights
and protections provided by the EMA. The EMA vests the governor with broad powers and
duties to “cop[e] with dangers to this state or the people of this state presented by a disaster
or emergency,” which the governor may implement through “executive orders,
proclamations, and directives having the force and effect of law.” MCL 30.403(1)–(2). This
executive order falls within the scope of those powers and duties, and to the extent the
governor may declare a state of emergency and a state of disaster under the Emergency
Management Act when emergency and disaster conditions exist yet the legislature has not
granted an extension request, they too provide a sufficient legal basis for this order.

Executive Order 2020-118 and its predecessors, which temporarily prohibited removal or
exclusion of a tenant or mobile home owner from their residential premises, were issued
because removing or excluding people from their residences was likely to exacerbate the
public health threat of COVID-19. Although COVID-19 remains a deadly pandemic,
conditions in Michigan are improving. As a result, it is now reasonable and necessary to
replace the eviction moratorium with a special judicial process for addressing COVID-19-
related debts. This process will keep people in their homes, while facilitating prompt
payment to landlords.

To facilitate this transition, this order temporarily extends, and then rescinds, the eviction
moratorium. Beginning July 16, 2020, Michigan landlords and lenders are strongly
encouraged to take advantage of COVID-19 housing debt remedies, rather than pursuing
eviction or foreclosure.

Acting under the Michigan Constitution of 1963 and Michigan law, I order the following:

1. Executive Order 2020-118 is temporarily extended and will remain in effect through
July 15, 2020. Effective July 16, 2020 at 12:01 am, Executive Order 2020-118 is
rescinded.

2. “COVID-19 housing debt” means a money debt resulting at least in part from a
breach of a residential lease, residential executory contract, or residential mortgage

2
due to failure to make a required payment during a state of emergency or state of
disaster arising out of the COVID-19 pandemic.

3. A conditional dismissal, pursuant to Michigan Court Rule 2.602, of a claim based on


COVID-19 housing debt may provide for the Eviction Diversion Program (EDP) or
any similar relief fund established at the county or municipal level to satisfy up to
90% of the amount due to the plaintiff via a lump sum rental assistance payment,
subject to availability of funds.

(a) Rental assistance under this section is available only for COVID-19 housing
debt.

(b) Non-COVID-19 housing debt must be paid by the tenant either in a lump sum or
as part of a conditional dismissal.

(c) A conditional dismissal that includes EDP rental assistance must require the
defendant’s share of the amount due to be paid in 12 equal monthly payments.

(d) In order to receive a lump sum rental assistance payment, plaintiff must waive
any late fees or penalties, and must forgive one-ninth of one dollar of the
remaining amount due for every dollar received as a lump sum payment. For
example: (i) if a plaintiff receives $900 from the Eviction Diversion Program on a
$1,000 arrearage, they must forgive the remaining $100; (ii) if a plaintiff receives
$450 from the Eviction Diversion Program on a $1,000 arrearage, they must
forgive $50, and the defendant tenant is responsible for paying the remaining
$500 in twelve equal monthly payments.

4. Eligibility for rental assistance payments under section 3 will be based on tenant
income and household size.

(a) Households up to 100% of area median income (AMI), calculated based on income
during the period for which assistance is sought, will be eligible for rental
assistance, with a target of half of funds reserved for households earning less
than 50% of AMI.

(b) Tenant responsibility will vary based on AMI and amount due.

(c) The Department of Labor and Economic Opportunity (LEO) must issue program
guidance to implement this section.

5. LEO will issue grants to Housing Assessment and Resource Agencies (HARAs) to
administer the Eviction Diversion Program. HARAs are responsible for making
rental assistance payments under section 3 of this order, consistent with the
eligibility criteria in section 4 and relevant LEO guidance.

6. Any statutory limits on the court of this state to adjourn any proceedings, toll any
redemption periods or limitations periods, or extend any deadlines are suspended
through July 31, 2020 at 11:59 pm.

3
7. For purposes of this order, “Eviction Diversion Program” refers to the rental
assistance program funded by section 506 of Enrolled Senate Bill 690 of 2020.

8. A copy of this order will be transmitted to the State Court Administrative Office.

Given under my hand and the Great Seal of the State of Michigan.

Date: June 26, 2020 ___________________________________


GRETCHEN WHITMER
Time: 11:45 pm GOVERNOR

By the Governor:

___________________________________
SECRETARY OF STATE

You might also like