Eviction Protections

Gov. Gavin Newsom and other legislators have consented to a proposal to extend California’s eviction moratorium by another 5 months. They are also proposing a new model to allocate the $2.6 Billion in federal rent relief to occupants monetarily hurt by the COVID-19 pandemic and rental property owners (of which $1.5 Billion to be allocated for California), an exertion that would head off what some caution could be a housing emergency in the state, authorities said Monday, January 25th, 2021. It is estimated that over 1 million renters are behind on payments, totaling approximately $3.7 Billion in unpaid rent.  $1.5 Billion in rent relief subsidies would cover approximately 40.5% of the total estimated delinquent rent in California. [PATRICK MCGREEVY STAFF WRITER, LA TIMES]

The proposed legislation, affirmed by the governor, would help leaseholders who have fallen behind as the pandemic’s closure of the economy has left numerous unemployed. Current state protections against eviction expire Jan. 31. However, some tenant advocates said the proposal does not go far enough.

Currently, the Bill proposes to [Apartment Association, California Southern Cities, JANUARY 25th, 2021]:

  • Extend the protections of AB 3088 (Chiu) until June 30, 2021, maintaining the current requirement that tenants pay 25% per month by the end of the moratorium set for June 30, 2021.
  • Allocate federal stimulus relief to landlords and tenants through a statewide model that:
    • Offers participating rental property owners 80% of a tenant’s rental arrears if the owner forgives the remaining 20%
    • Offers tenants a 25% payment for owners who decline to participate to secure protection from eviction.
    • Preserves 25% prospective rental payments after accounting for unpaid arrears.
  • Prioritizes renters with the “highest need” which targets households with less than 80% of the area median income.
    • Round 1 is defined as tenant households below 50% of AMI or unemployed for 90 days
    • Round 2 is defined as tenant households below 80% of the AMI and in a community disproportionately impacted by COVID-19
    • Round 3 is defined as everyone below 80% of the AMI not addressed in round 1 or 2

“While the proposition doesn’t go the extent that I might want … we should pass this by end of week to keep away from mass expulsions,” State Sen. Scott Wiener said. [LA TIMES, JANUARY 25th, 2021]

Atkins and Rendon had flagged recently that they supported the extension.

“COVID-19 continues to devastate communities across our state and too many Californians remain one paycheck away from losing their apartments or homes. These families need protection and relief now,” Newsom, Rendon and Atkins said in a joint statement Monday, adding that the proposal is “protecting tenants and small landlords from losing their housing as the nation continues to confront the pandemic.” [LA TIMES, JANUARY 25th, 2021]

Jamison Management Company is committed to staying informed and proactive during this difficult time. We are determined to continue to provide our clients with the best service and return on their investments, even during a pandemic. We remain vigilant in offering guidance to our Residents and community, especially to those who are affected by Covid-19.