May 30, 2020
EXECUTIVE ORDER NO. 142

ASSISTING NORTH CAROLINIANS BY PLACING TEMPORARY PROHIBITIONS ON EVICTIONS AND EXTENDING THE
PROHIBITION ON UTILITY SHUT-OFFS

WHEREAS , on March 10, 2020, the undersigned issued Executive Order No. 116 which declared a State
of Emergency to coordinate the State’s response and protecti ve actions to address the Coronavirus
Disease 20 19 (“COVID-19″) public health emergency and provide for the health, safety, and welfare
ofresidents and visitors located in North Carolina; and

WHEREAS , on March 1 1 , 2020, the World Heal th Organization declared COVJD- 19 a global
pandemic; and

WHEREAS, on March 13, 2020, the President of the United States issued an emergency declaration for
all states, tribes, territories, and the District of Columbia, retroactive to March 1, 2020, and
the President declared that the COVID- 19 pandem ic in the U nited States consti tutes a national
emergency; and

WHEREAS, on March 25, 2020, the President approved a Major Disaster Declaration, FEMA-4487-DR, for
the State of North Carol ina; and

WHEREAS , in responding to the COVID-19 pandemic, and for the purpose of protecti ng the health,
safety, and welfare of the people of No1th Carolina, the undersigned has issued Executive Order
Nos. 116-122, 124-125, 129- 131, 133-136, and 138-141; and

WHEREAS, more than twenty-seven thousand people in North Carolina have had laborato1y-confirmed
cases of COVTD- 19, and hund reds of people in North Carolina have died from the disease; and

WHEREAS, hospital administrators and health care providers have expressed concerns that unless the
spread of COVID-19 is limi ted, existing health care facilities may be insufficient to care for
those who become sick; and

WHEREAS, slowing and controll ing communi ty spread of COVID-19 i s critical to ensuring that the
state’s healthcare facilities remai n able to accommodate those who require med ical
assistance; and

WHEREAS, to mitigate further communi ty spread of COVID- 19 and to reduce the burden on the state’s
health care providers and faci l ities, it is necessary to limit person-to-person contact
in workplaces and comm unities; and

WHEREAS, such limitations on person-to-person contact are reasonably necessary to address the
public health risk posed by COVID-19; and

WHEREAS, due to the State of Emergency, many North Carolinians are working from home and staying at
home; many businesses have seen a substantial decline in demand for the goods or services that
they sell, causing some businesses to close or reduce the size of their workforce; and some
businesses have been ordered closed to slow the spread of COVID-19; and

WHEREAS, any disruptions or dislocations that would require people to leave their homes increase
the risk of spread of COVID-19: and

WHEREAS, the economic effects of the pandemic have broadly affected business owners, tenants, and
employees across the state; and

WHEREAS, because of these and other economic effects from the COVID-19 pandemic, many North
Carolinians are enduring financial hardshi p and financial insecurity; and

WHEREAS, on April 13, 2020 and May 1, 2020. Chief Justice Cheri Beasley of the North Carolina
Supreme Court issued orders postponing court hearings, including eviction proceedings, until June
1, 2020; and

WHEREAS, in Executive Order No. 124, the undersigned and Attorney General Josh Stein provided
further guidance on the Chief Justice’s emergency order, as it relates to evictions, and strongly
encouraged mortgage companies to take actions to alleviate the adverse impact caused by COVID-1 9
on mortgage borrowers who are unable to make timely payments; and

WHEREAS, when the Chief Justice’s emergency orders allow court hearings to resume on June 1, 2020,
residential tenants in North Carolina wi ll be at risk of eviction; and

WHEREAS, residential evictions remove people from their homes, where they are safest during the
COVID-19 pandemic, and thereby increase the risk that such people will contract and spread
COVID-19; and

WHEREAS, many residential evictions leave people homeless, where they are at extreme risk of
contracting and spreading COVID-19; and

WHEREAS, because many people are now performing their jobs and receiving schooling from their
homes, residential evictions during the COVID-19 pandemic also threaten people’s ability to
maintain their livelihood and receive education; and

WHEREAS, for these and other reasons, it is reasonable and necessary that there be an additional
twenty-one (21) day moratori um on residential evictions for reason of late payment or nonpayment,
beginning on the date of this Executive Order; and

WHEREAS, commercial evictions disrupt and usually terminate the jobs of all the people in the
commercial establishments where the eviction takes place; and

WHEREAS, North Carolina’s unemployment rate has greatly increased during the COVID-19 pandemic, and
it is reasonable and necessary to take actions that protect North Carolina jobs; and

WHEREAS, commercial evictions require significant amounts of unexpected travel, as commercial
tenants move the equipment in the facilities they have leased, and this travel will unnecessarily
expose people to risk of transmitting and spreading COVID-19; and

WHEREAS, the federal Paycheck Protection Program and other programs under the CARES Act, P.L. 1
16-136, have provided financial assistance to small businesses, but these programs provide only a
limited amount of assistance, and some commercial tenants are likely to exhaust the financial
assistance provided under this program; and

WHEREAS, Section 4024 of the CARES Act, P.L. 116-136, protects from eviction, through late August,
tenants in properties with federally backed mortgage loans (including loans owned or securitized by
Fannie Mae, Freddie Mac. or insured by HUD, the VA, or the USDA) and tenants in properties
participating in various federal affordable housing programs, but some dwellings and some tenants
are not covered by the protections in the CARES Act; and

WHEREAS, as a result, it is likely that, absent intervention, there will be a wave of commercial
evictions in North Carolina; and

WHEREAS, for these and other reasons, it is reasonable and necessary that there be a twenty-one (21
) day moratori um on commercial evictions for reason of late payment or nonpayment caused by the
COVID-19 pandemic, beginning on the date of this Executive Order No. 142; and

WHEREAS, the moratori ums on evictions in this Executive Order do not forgive rent or excuse the
obligation to pay rent, and instead, this Executive Order merely delays evictions and waives
interest, late fees, and penalties that arise during the Order’s effective period; and

WHEREAS, the economic effects of the pandemic have broadly affected utility customers across the
state; and

WHEREAS, utility services are essential to the continued health and safety of residential utility
customers, to the ability of workers and employers to engage in teleworking, and to the continued
economic viability of business utility customers, even as the economic effects of the pandemic
threaten customers’ ability to pay for those util ity services; and

WHEREAS, on March 19, 2020, the North Carolina Utilities Commission (‘”Utilities Commission” or
””Commission”) issued an Order Suspending Utility Disconnections for Non­ Payment, Allowing
Reconnection, and Waiving Certain Fees; and

WHEREAS, the Utilities Commission’s March 19, 2020 Order applied to only some of the utilities that
are necessary for the continued well-bei ng of North Carolina residents and the continued viability
of North Carolina businesses; and

WHEREAS, in Executive Order No. 124, the undersigned enacted, for all utilities, prohibitions and
restrictions similar to and consistent with the Utilities Commission’s March 19, 2020 Order; and

WHEREAS, the undersigned has determined that it is reasonable and necessary to extend the utility
customer protections in Executive Order No. 124 for an additional sixty (60) days from the date of
this Executive Order; and

WHEREAS, Executive Order No. 116 invoked the Emergency Management Act, and authorizes the
undersigned to exercise the powers and duties set forth therein to direct and aid in the response
to, recovery from, and mitigation against emergencies; and

WHEREAS, pursuant to N.C. Gen. Stat. § 166A-19.10(b)(2), the undersigned may make, amend, or
rescind necessary orders, rules, and regulations within the limits of the authority conferred upon
the Governor in the Emergency Management Act; and

WHEREAS, pursuant to N.C. Gen. Stat. § 166A- l 9.1O(b)(7), the undersigned is authorized and
empowered to utilize the services, equipment, supplies, and facilities of political subdivisions,
and their officers and personnel are required to cooperate with and extend such services and facil
ities to the undersigned upon request and

WHEREAS, pursuant to N.C. Gen. Stat. § l 66A- l 9.30(a)(l ), the undersigned may utilize all
available state resources as reasonably necessary to cope with an emergency, including the transfer
and direction of personnel or functions of State agencies or units thereof for the purpose of
performing or facilitating emergency services; and

WHEREAS, pursuant to N.C. Gen. Stat. § 166A-19.30(a)(2), during a Gubernatorially declared State of
Emergency, the undersigned has the power to “‘give such directions to state and local law
enforcement officers and agencies as may be reasonable and necessary for the purpose of securing
compliance with the provisions of this Article..; and

WHEREAS, pursuant to N.C. Gen. Stat. § l 66A- l 9.30(a)(3), the undersigned may take steps to
assure that measures, including the installation of public utilities, are taken when necessary to
qualify for temporary housing assistance from the federal government when that assistance is
required to protect the public health, welfare, and safety: and

WHEREAS, pursuant to N.C. Gen. Stat. § 166A-19.30(b)(2), the undersigned, with the concurrence of
the Council of State, may establish a system of economic controls over all resources, materials,
and services, including shelter and rents; and

WHEREAS, pursuant to N.C. Gen. Stat. § I 66A- l 9.3O(b)(3), the undersigned, with the concurrence
of the Council of State, may regulate and control the maintenance, extension, and operation of
public utility services and facilities; and

WHEREAS, pursuant to N.C. Gen. Stat. § l 66A- l 9.30(b)(4), the undersigned, with the concurrence
of the Council of State, may waive a provision of any regulation or ordinance of a State agency or
political subdivision which restricts the immediate relief of human suffering; and

WHEREAS, pursuant to N.C. Gen. Stat. § l 66A- l 9.30(b)(5), the undersigned, with the concurrence
of the Council of State, may perform and exercise such other functions, powers, and duties as are
necessary to promote and secure the safety and protection of the civilian population; and

WHEREAS, N.C. Gen. Stat. § 166A-19.I O(b)(3) further authorizes and empowers the undersigned to
delegate Gubernatorial vested authority under the Emergency Management Act and to provide for the
sub-delegation of that authority; and

WHEREAS, under the terms of N.C. Gen. Stat. § l 66A- l 9.70(a), utilities are considered critical
infrastructure for the State of North Carolina; and

WHEREAS, the undersigned has sought and obtained concurrence from the Council of State consistent
with the Governor’s emergency powers authority in N.C. Gen. Stat. § 166A-19.30.

NOW, THEREFORE, by the authority vested in me as Governor by the Constitution and the laws of the
State of North Carolina, IT IS ORDERED:

Section 1. Evictions Moratorium.

For the reasons and pursuant to the authority set forth above, the undersigned orders as follows:

A. Definitions. In this Executive Order:

I . ··Residential Lease’·means a lease of a dwelling unit in the State of North Carolina to which
the North Carolina Residential Rental Agreements Act, N.C. Gen. Stat. §§ 42- 38 to 42-46, applies.

2. “Residential Tenant” means the tenant in a Residential Lease.

3. “”Residential Landlord'” means the owner o[ and any rental management company, rental agency, or
any other person having the actual or apparent authority of an agent over, any unit in a
Residential Lease.

4. ··commercial Lease” means a lease of any real property that is leased to an individual,
business, or organization that does commerce in the State of North Carolina; provided, however,
that “”Commercial Lease” does not include: Residential Leases (as that term is defined in this
Executive Order); operations of hotels, motels, or similar lodging

subject to regulation by the Commission for Public Health; and vacation rentals entered into under
Chapter 42A of the General Statutes.

5. ··commercial TenanC means the tenant in a Commercial Lease.

6. ··commercial Landlord” means the owner of: and any rental management company, rental agency, or
any other person having the actual or apparent authority of an agent over, the real property in a
Commercial Lease.

7. An action is “”for reason oflate payment or nonpaymenC if the legal basis for that action was,
in whole or in part, the tenanf s late payment or nonpayment of rent.

8. An effect is “”caused by the COVID-19 pandemic” if it is caused, in whole or in part, directly
or indirectly, by the COVID-19 pandemic. This includes, without limitation, not only the medical
effects of the COVID-1 9 pandemic, but also the disruptions to the economy that have arisen since
the beginning of the COVID-19 pandemic and the economic effects of business closures and other
public health restrictions instituted because of the COVID-19 pandemic.

9. The “”Effective Period” of this Section is defined in Subsection (B)( 1) below.

B. Residential Evictions.

1. No Evictions for Late Payment or Nonpayment.

a. Residential Landlords shall not, for reason of late payment or nonpayment, initiate or take any
action to further summary ejectment or other eviction proceedings against a Residential Tenant.

b. All Residential Landlords are prohibited from requiring Residential Tenants to vacate their dwelling units for reason of late payment or nonpayment.

c. All leases are modified to disallow evicting, or otherwise terminating the possession ot
Residential Tenants for reason of late payment or nonpayment during the Effective Period of this
Section.

These restrictions and modifications shall continue for twenty-one (21) days after the date of
entry of this Executive Order. This time period (the “”Effective Period”) may be extended by a
subsequent Executive Order issued by the undersigned with the concurrence of the Council of State.

For example, if this Executive Order is issued on May 30, the Effective Period of this Section will
be May 30 through June 20, inclusive, unless there is an Executive Order extending this Section.

2. Late fees and penalties. Residential Landlords shall not assess upon their Residential Tenants
interest, late fees. or other penalties for late payment or nonpayment of rent due during the
Effective Period. If a Residential Tenant had existing interest, fees, or other penalties when this
Executive Order came into effect, all accumulation of additional interest, fees, or other penalties
is paused during the Effective Period.

3. Extra time to pay off rent due in the Effective Period. Residential Tenants
shall be provided the opportunity to make reasonable payment arrangements to pay off, over at least
a six (6) month period. any rent that became due in the Effective Period and was not paid during
the Effective Period. No interest, late fees or other penalties shall be charged on these
arrearages. The six-month payoff period shall be calculated from the expiration of the Effective
Period.

C. Com mercial Evictions.

1. During the Effective Period of this Section. as defined in Subsection (B)(l ) above:

a. Restriction on Commercial Evictions. Commercial Landlords shall not, for reason of late payment
or nonpayment caused by the COVID-1 9 pandemic, perform a self-help eviction of a Commercial
Tenant, require Commercial Tenants to vacate their facilities, terminate any Commercial Tenant’s
lease, or take any action, judicial or otherwise, to terminate a Commercial Tenant’s possession.

b. This restriction on commercial evictions shall apply only if one or both of the following
conditions are met:

i. The landlord is aware that the Commercial Tenant’s late payment or nonpayment is caused by the
COVID-19 pandemic; or

11. The Commercial Tenant provides the landlord with documentation or other evidence that the late
payment or nonpayment is caused by the COVID-1 9 pandemic.

2. Duty to Inq uire. During the Effective Period of this Section, before performing a
self-help eviction of a Commercial Tenant, terminating any Commercial Tenant’s lease, or
taking any action to terminate a Commercial Tenant’s possession for reason of late payment or
nonpayment, Commercial Landlords shall inquire whether the late payment or nonpayment is caused
by the COVID-19 pandemic and give the Commercial Tenant seventy-two (72) hours to respond.
If the landlord does not comply with the provisions of this Subsection (C)(2), the landlord’s
action is voidable by the tenant.

3. Late Fees and Penalties. Commercial Landlords shall not assess upon
their Commercial Tenants interest, late fees, or other penalties for late payment
or nonpayment of rent due during the Effective Period. If a Commercial Tenant had existing
interest, fees, or other penalties when this Executive Order came into effect, all accumulation of
additional interest, fees, or other penalties is paused during the Effective Period.

4. Extra Time to Pay Off Rent Due in the Effective Period. Commercial Tenants shall be provided the
opportunity to make reasonable payment arrangements to pay off, over at least a six (6) month
period, any rent that became due in the Effective Period and was not paid during the Effective
Period. No interest, late fees or other penalties shall be charged on these arrearages. The
six-month payoff period shall be calculated from the expiration of the Effective Period.

D. Rent Remains Due. Except for the interest, late fees and penalties expressly waived above,
nothing in this Executive Order shall be construed as waiving tenants’ obligation to pay rent or
perform any other obligations which an individual may have under a tenancy.

E. Evictions for Other Reasons. Nothing in this Executive Order affects evictions for reasons other
than late payment or nonpayment. However, all landlords are strongly encouraged to work with
tenants to the best of their abilities to avoid evictions in light of the COVID-19 State of
Emergency.

F. Payment Assistance. NCDHHS shall publicize payment assistance programs to aid landlords and
tenants in the payment of their bills.

G. Foreclosure Proceedings. The undersigned strongly encourages all lenders to work with property
owners to the best of their abilities to provide loan payment flexibility that enables property
owners to avoid foreclosures, in light of the COVID-19 State of Emergency.

H. Tenants Should Notify Landlords and Pay Rent if Possible. During the Effective Period, rent is
still due and will accrue. Therefore, the undersigned strongly encourages any Residential Tenant or
Commercial Tenant who is or will be unable to pay the full rent due under a rental agreement or
lease to notify the landlord as soon as reasonably possible and to make rental payments to the
extent the tenant is financially able to do so. Failure of a Residential Tenant or Commercial
Tenant to act as encouraged by this Subsection does not exclude the tenant from the protections of
this Executive Order.

Section 2. Extension of Assistance for North Carolina Utility Customers.

For the reasons and pursuant to the authority set forth above and in Executive Order No. 124, the
undersigned orders as follows:

A. Section 1 of Executive Order No. 124 shall remai n in effect until 11:59 pm on July 29, 2020.

B. Utility Service Providers shall reasonably inform their customers of this extension.
Section 1(F) of Executive Order No. 124 shall apply to that notification.

C. Section 1(C) of Executive Order No. 124 is amended as follows:

”Late fees and payment arrangements. A Utility Service Provider shall not bill or collect any fee,
charge, penalty, or interest for a late or otherwise untimely payment that becomes due from the
date of this Executive Order. Customers shall be provided the opportunity to make reasonable
payment arrangements to pay off over at least a six (6) month period any arrearages accumulated
during the effective period of this Executive Order, of Section 2 of this Executive Order, and of
any other order extending this Executive Order and 180 days thereafter. In the event a utility
service provider and customer are unable to agree on the duration of an extended repayment
plan, the default repayment period shall be six (6) months. The six (6) month payoff
period shall be calculated from the date of termination of this Section of this Executive Order or,
if other applicable Executive Orders extend the protections of this Section, from the date of the
termination of the last Executive Order that extends such protections; provided, however, that
Utility Service Providers subject to the Utilities Commission’s March 19, 2020 Order shall remain
subject to the terms of that effier any Utilities Commission order that may be in effect after
this Executive Order expires. No interest or late fee shall be charged on arrearages. No
provision in this Executive Order shall be construed as relieving a customer of their obligation to
pay bills for receipt of any service covered by this Executive Order.”

D. Section 1(G) of Executive Order No. 124 is amended and restated as follows:

“‘Duration. This Section shall remain in effect for one hundred ( 120) days, until 11:59 pm on July
29, 2020, unless rescinded or superseded by another applicable Executive Order; provided, however,
that after that date, the provisions of this Section shall continue to apply to arrearages that
accumulated while this Executive Order was in effect.”

E. Section 1(J) of Executive Order No. 124 is amended as follows:

‘”Implementation and enforcement. The undersigned directs that the North Carolina
Utilities Commission monitor responses and provide assistance and guidance to Utility
Service Providers, including to the extent possible Utility Service Providers not under the
Commission’s regulatory jurisdiction, in implementing the provisions of this Section of this
Executive Order. Utility Service Providers shall report implementation information 1..veekly
monthly to the North Carolina Utilities Commission, including the following: (1) number of accounts
by type (e.g., residential or business account) for which service termination was forborne, (2)
number of reconnections by type of account, (3) amount of late fees and other penalties not
collected, (4) number of accounts on an extended repayment plan, (5) customer notification
information, and any other information determined by the Utilities Commission. The Utilities
Commission and the Attorney General shall have the authority to enforce the provisions of this
Executive Order through any methods provided by current law. The Utilities Commission, and to
the extent necessary for any Utility Service

Providers not within the Utilities Commission’s jurisdiction, the Attorney General may waive
provisions in their discretion and order an effective alternative. The Commission shall provide a
·.veekly monthly report to the Governor’s Office on implementation of this Executive Order.”

Section 3. No Private Right of Action Against the State or Against Officers.

This Executive Order is not intended to create, and does not create, any individual right,
privilege, or benefit, whether substantive or procedural, enforceable at law or in equity by any
party against the State of North Carolina, its agencies, departments, political subdivisions, or
other entities, or any officers, employees, or agents thereo[ or any emergency management worker
(as defined in N.C. Gen. Stat. § l 66A- l 9.60).

Section 4. Supremacy Clause.

This Executive Order is not intended to supplant or preempt any federal law, including, but not
limited to the protections afforded to tenants under the CARES Act, P.L. 116-136.

Section 5. Savings Clause.

If any provision of this Executive Order or its application to any person or circumstances is held
invalid by any court of competent jurisdiction, this invalidity does not affect any other provision
or application of this Executive Order, which can be given effect without the invalid provision or
application. To achieve this purpose, the provisions of this Executive Order are declared to be
severable.

Section 6. Distribution.

I hereby order that this Executive Order be: ( 1) distributed to the news media and other
organizations calculated to bring its contents to the attention of the general public; (2) promptly
filed with the Secretary of the North Carolina Department of Public Safety, the Secretary of State,
and the superior court clerks in the counties to which it applies, unless the circumstances of the
State of Emergency would prevent or impede such filing; and (3) distributed to others as necessary
to ensure proper implementation of this Executive Order.

Section 7. Enforcement.

A. Pursuant to N.C. Gen. Stat. § 166A-l 9.30(a)(2), the provisions of this Executive Order shall
be enforced by state and local law enforcement officers.

B. A violation of this Executive Order may be subject to prosecution pursuant to N.C. Gen. Stat.
§ l 66A- l 9.30(d), and is punishable as a Class 2 misdemeanor in accordance with N.C. Gen. Stat.
§ I 4-288.20A.

C. This Executive Order limits only evictions for reason of late payment or nonpayment. This
Executive Order does not affect or restrict access to court orders that limit, for other reasons, a
person’s access to a location.

Section 8. Effective Date.

This Executive Order is effective as of the beginning of the calendar day on which it is entered.

Section I of this Executive Order shall remain in effect for the time period stated in Subsection l
(B)(l ), except that Subsections l (B)(3) and l (C)(4) shall remain in effect for six (6) months beyond the time period stated in Subsection 1(8)(1 ).

Section 2 of this Executive Order shall remain in effect until the date listed in Subsection 2(A)
of this Executive Order, except that Subsection, I (C) of Executive Order No. 124, as amended by
Section 2(C) of this Executive Order, shall remain in effect for six (6) months beyond the date
listed in Subsection 2(A) of this Executive Order.

An Executive Order rescinding the Declaration of the State of Emergency will
automatically rescind this Executive Order.

IN WITNESS WHEREOF, l have hereunto signed my name and affixed the Great Seal
of the State of North Carolina at the Capitol in the City of Raleigh gh, this 30111 day of May in the year
of our Lord two thousand and twenty