A Big Win for Virginia Housing Providers: Virginia Court of Appeals Clarifies CARES Act Ruling

On October 8th, 2024, the Virginia Court of Appeals issued a landmark decision in Woodrock River Walk v. Rice and Andrade, providing much-needed clarity and support for Virginia housing providers regarding the CARES Act's notice requirements. The court ruled that the CARES Act’s 30-day notice to vacate period is only breached if a writ of eviction is executed during this timeframe. This judgment reaffirms the rights of housing providers to initiate eviction processes before the end of the 30-day period without being deemed non-compliant with federal law.

Background of the Case
The case centers around Woodrock River Walk, LLC (“Woodrock”), which issued a notice to residents Rice and Andrade on December 7, 2022, due to unpaid rent. This notice clearly stipulated two critical points:

1. Under Virginia law, the lease would terminate within five days if the outstanding rent was not paid.
2. Per the CARES Act, the residents were entitled to a 30-day period before they were required to vacate.

Despite Woodrock’s adherence to state and federal notice protocols, the Salem General District Court initially dismissed the eviction case, citing that Woodrock’s filing occurred only 29 days after the notice. The Circuit Court upheld this decision, but upon further appeal, the Virginia Court of Appeals clarified that while the notice period was indeed federally mandated, the act of filing an eviction summons does not necessitate a resident’s immediate departure and, therefore, does not contravene the CARES Act.

Legal Interpretation of the CARES Act
The Virginia Court of Appeals closely analyzed whether initiating an unlawful detainer action or terminating a lease within 30 days was a direct violation of the CARES Act. The court concluded that filing for unlawful detainer is an initial step in the eviction process and does not compel residents to vacate. In its ruling, the court emphasized that only the execution of an actual writ of eviction mandates departure, thereby confirming that Woodrock’s actions were lawful within the CARES Act’s parameters.

Virginia Code § 55.1-1233 was also evaluated in this case. This state law requires tenants to vacate at the end of a lease, but the court noted that in instances where CARES Act and state law conflict, the federal CARES Act supersedes. Therefore, residents are guaranteed a 30-day period to vacate following notice, even if a lease termination notice is issued under state law.
This clarification aligns with the CARES Act’s intention to provide tenants additional time to secure housing alternatives, protecting them from sudden displacement in federally backed properties.

Implications for the Rental Housing Industry
Since the CARES Act’s inception in 2020, housing providers across the nation have faced ongoing uncertainty regarding its enforcement, especially the 30-day notice to vacate for residents in federally supported housing. This ruling in Virginia has offered housing providers a clearer understanding of their rights, affirming that they may lawfully initiate eviction proceedings before the 30-day notice period expires, as long as no writ of eviction is executed during that time.

This decision, though only binding in Virginia, could serve as persuasive legal precedent in other states where CARES Act interpretations remain contested.

The Virginia Apartment Management Association is proud to extend its heartfelt congratulations and gratitude to Patrick Pettitt and Senex Law for achieving this significant legal victory. This outcome not only clarifies long standing legal uncertainties, but also helps safeguard the industry’s ability to operate within a coherent legal framework in the state of Virginia.