Wisconsin governor announces a statewide ban on evictions and foreclosures during coronavirus outbreak

Gov. Tony Evers banned landlords throughout Wisconsin from evicting tenants and ordered lenders statewide to halt foreclosure actions for 60 days, according to an emergency order issued Friday.

The order also brings to a halt sheriff's sales, which are the auctions where foreclosed properties are sold.

"Evictions and foreclosures pose a direct and serious threat to the health and well-being of Wisconsinites, especially as we ask that everybody remain safer at home," Evers said Friday during an online news conference. "This order is another step we can take to prioritize the health and safety of Wisconsinites during this public health emergency."

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The order allows evictions in domestic violence cases and when there is "an imminent threat of serious physical harm to another person."

Renters and homeowners are still required to pay their rent or make mortgage payments during the moratorium.

"I would be encouraging people to pay unless they can't,' said Peter Koneazny, litigation director at the Legal Aid Society of Milwaukee. 

Evers' order comes after tenant advocates called for the ban, warning of the dangers of people losing their homes amid the coronavirus outbreak. The groups, including those that provide legal services to low-income individuals, warned that tossing tenants onto the street could fuel the spread of the deadly disease.

"We are mindful that during this time, individuals, families and small businesses may see disruptions in paychecks due to losing hours, tips, businesses or employment," Evers said. "This order is another step we can take to prioritize the health and safety of Wisconsinites during this public health emergency."

The order is being issued by the governor and Andrea Palm, secretary-designee of the Department of Health Services 

Koneanzy said the ban on evictions is needed because of the economic damage that has resulted from the COVID-19 pandemic.

"Considering how pervasive the loss of income is and the inability of many people to move, I don't think there is another choice," but to impose a ban, Koneazny said.

Heiner Giese, lobbyist for the Apartment Association of Southeastern Wisconsin, questioned whether the eviction moratorium is needed. 

"We are puzzled by the timing of the governor's order," Giese said, explaining that "most everyone working or not working is about to get several thousand dollars as the result of the CARES Act ."

The CARES Act is the $2 trillion economic recovery act  which includes direct payments to most Americans.

"That money should enable them to pay rent," Giese said. 

But Tristan Pettit, a Milwaukee landlord lawyer, said he thinks most landlords are trying to work with their tenants during the outbreak.

"While I have serious concerns that many landlords may not survive this pandemic and its fallout, I don't believe that any landlord wants to evict their tenants under these circumstances," Pettit said. "Most landlords that I know are working very diligently with their tenants on rent deferment agreements so that everyone can get through this difficult time."  

Rose Oswald Poels, Wisconsin Bankers Association president and CEO, said the trade group supports Evers' order. Many banks, particularly the larger institutions, have already said they would not file foreclosure suits during the next 60 days, she said.

"Obviously these are unprecedented times for every one, Oswald Poels said.  

Evers' order goes further than recently imposed bans or limits on evictions in Milwaukee and Dane counties

In Dane County, Chief Judge V.L. Bailey-Rihn ordered last week that the eviction orders, known as writs of restitution, not be served.

In Milwaukee County, Circuit Judge Pedro Colón last week ordered that the nearly 50 orders pending in the state's largest county not be served until at least mid-April when he will have a hearing on the matter. The orders are the final step in the eviction process.

Giese said the moratorium could cost some landlords at least four months' rent. He explained the eviction ban will last until the end of May. If landlords file eviction suits when the ban is lifted, it will take until about July to get an eviction order and have the tenant tossed out. 

"Meanwhile the landlords will still have all of their out-of-pocket expenses, like water bills and taxes," Giese said. 

Just at the landlords will have to pay their bills, tenants will also be obligated to pay their rent during the eviction moratorium," said Christine Donahoe, housing priority coordinator for Legal Action of Wisconsin.

Donahoe said there could be a flood of eviction actions when the Evers' order expires. 

"The order will help stabilize things while we're in crisis mode," Donahoe said. "We will all have to brace for what going to come after this over."

Contact Cary Spivak at (414) 223-5467 or cspivak@jrn.com. Follow him on Twitter at @cspivak or Facebook at facebook.com/cary.spivak.

Contact Mary Spicuzza at (414) 224-2324 or mary.spicuzza@jrn.com. Follow her on Twitter at @MSpicuzzaMJS.