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California Bill Aims to Pay off 80% of Most Unpaid Rent

by ECT

California Governor Gavin Newsom announced they aim to pay off 80% of most peoples unpaid rent that has accumulated during the coronavirus pandemic—with the caveat that landlords agree to forgive 20%.

SB 91 would use federal funds to pay up to 80% of back rent accumulated between April 20 of last year and March 31, 2021. A landlord who accepts the money would have to forgive the remaining unpaid rent for that period.

Federal dollars could additionally become available to help cover unpaid rent between March and June of this year.

Newsom announced Monday the eviction moratorium extends to June 30, 2021.

 

Governor Newsom, Legislative Leaders Issue Statement on Eviction Moratorium Extension

SACRAMENTO – Governor Gavin Newsom, Senate President pro Tempore Toni Atkins and Assembly Speaker Anthony Rendon today issued the following joint statement on the extension of the eviction moratorium to protect Californians impacted by COVID-19:

“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.

“Today, we are announcing an agreement to extend the eviction moratorium in California through June 30, 2021 – protecting tenants and small landlords from losing their housing as the nation continues to confront the pandemic. We are also moving forward as quickly as possible to deploy California’s share of the latest federal stimulus bill – ensuring that up to $2.6 billion in renter aid is administered quickly, equitably and accountably.

“These critically needed federal funds, targeted to the most at-risk households with unpaid back rent, will help tenants stay afloat during and after this pandemic. Income-qualified tenants and their landlords can choose to receive direct rental assistance in exchange for forgiving prior rental debt.

“While we are proud of this agreement, which maintains California’s COVID eviction protections as the strongest statewide rules in the nation, our work is far from over. This eviction moratorium and rapid deployment of funds to the most at-risk are among our top priorities. But we have more work to do, together, to tackle the structural housing cost crisis in California. The pandemic exacerbated these issues, it did not create them. And our work to address these fundamental issues must continue with urgency and resolve.

“We thank the many stakeholders who have engaged in this process for the past several months, and we recommit ourselves to the work ahead to maintain California’s position as the most compassionate, progressive state in America.”

Statement by the California Apartment Association:

New COVID-19 bill includes federal funds for up to 80% of unpaid rent

The California Legislature introduced a bill today that would reimburse qualifying tenants and landlords for most unpaid rent accrued since the COVID-19 pandemic shut down the economy last spring.

SB 91 would use federal funds to pay up to 80% of back rent accumulated between April 20 of last year and March 31, 2021. A landlord who accepts the money would have to forgive the remaining unpaid rent for that period.

Additional federal dollars would be available to help cover unpaid rent from March through June of this year.

To qualify for the federal dollars, the unpaid rent must be owed by a tenant who earned less than 80% of the area median income in 2020 or at the time of application. According to the Business, Consumer Services, and Housing Agency, landlords and tenants would be allowed to apply for those dollars beginning in March 2021. CAA is working to identify additional funds to pay back rent owed by renters with incomes higher than 80% of AMI.

SB 91 is intended as a replacement for California’s COVID-19 Tenant Relief Act of 2020, or AB 3088, which expires Jan. 31.

Under AB 3088, COVID-19 affected tenants were given until Jan. 31 — less than a week from now — to pay 25% of back rent accrued since Sept. 1, 2020, or be subject to eviction. SB 91 would extend the Jan. 31 deadline until June 30.

It’s worth noting, however, that the federal eviction moratorium, which runs through March and will likely be extended by Congress, prohibits any evictions that would have been allowed under AB 3088.

“While the bill doesn’t contain everything we asked for, the important provision here is the payment of dollars for rent that is owed,” said Debra Carlton, executive vice president of state public affairs. “Without this money, many landlords are at risk of losing their rental units. It is imperative that the state release that money quickly.”

In addition to providing up to 80% of back rent owed, SB 91 would provide additional dollars as an incentive to local governments that agree to follow the state rules established through SB 91. The California Apartment Association argued that a consistent standard will help with compliance for both owners and tenants. Local governments that implement their own rules for distribution of money will not receive additional dollars from the state.

While SB 91 would give tenants more time to pay back rent, it’s vital that renters understand they are still responsible for the minimum 25 percent. Tenants must return an attestation to owners declaring under penalty of perjury that they have been negatively affected by COVID, and they must pay the 25% of the rent owed for the month.

“Tenants can still face eviction if they don’t cooperate with their landlords in resolving past-due rent,” she said.

The Assembly and Senate plan to vote on SB 91 on Thursday.

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11 comments

More dumbocratic garbage! Jan 26, 2021 - 1:20 pm

More Liberal bull shit!! Giving away tax payers money!

Pacman Jan 26, 2021 - 3:39 pm

So let me get this straight… CA wants to pay your back rent and thinks that they can do this IF they get federal money and IF landlords eat 20%.

So the translation is if I wanted to buy my significant other a new car, told her I would buy her a new car, but needed a lottery win to pay 80% of the car and the dealer to cover the other 20%, I’d get her a new car.

Financial management of our state politicians is absolutely dumbfounding. Just keep voting for them and you’ll get free stuff…somehow.

Your Mother Jan 26, 2021 - 5:57 pm

Sooooo you’d rather have thousands of people evicted from their homes to live on the streets? I guess that does sound like classic Right winger republican ideology after all 🤷🏽

Frank Jan 26, 2021 - 7:19 pm

Here’s a novel idea, go get the money the EDD gave away and take care of all the rent and water bills no one has paid. Then fire everyone in EDD and get a company with some people that know how to handle money.

Kole Rodriguez Jan 27, 2021 - 7:38 am

Yourmother
I’m sure you’re a lovely person, even though you’re bigoted comment shows otherwise. But the problem the “right wingers” have with this idea is relatively simple.
Where is this money coming from?! Unlike what most people think, the money is not magically printed, nor is it coming from a secret stash at the bottom of the White House. It’s a debt. It sounds nice to bail everyone out, but who will pay for this debt?
While it’s very complicated, the easy answer is, it’s taken from retirement funds. Millennials, gen X, Gen Y, all get to pay for this through the depletion of their their retirement funds. Furthermore, “giving away” money will cause sever inflation. Have you ever wondered why Mexico and other countries require such high prices (20,000 pesos = $200… this is a basic example not a real #} it’s because their money isn’t worth anything. I would ask you to please educate yourself before making such a silly comment. Learn who your new president is and the policies he’s created in the past. Read and turn off CNN. Furthermore, stop begging for handouts and worry about the future and not yourself, right now. This country is failing because people refuse to educate themselves

Yeahright Jan 27, 2021 - 9:09 am

Thank you for being the voice of reason. Very well said, Kole Rodriguez!

Jg Jan 27, 2021 - 9:39 am

Hey, can you also pay my late mortgage payments too? What’s fair is fair or only for some and not others.

This is BS , no gifting of public money please. Especially my hard paid tax dollars. These bozos really think money grows on trees.

Your Mother Jan 27, 2021 - 11:31 am

Kole, this has nothing to do with “hand outs” or giving away public money; this has to do with keep thousands of families from being pushed out onto the streets. There was a time when people on both sides of the aisle would see that as a bad outcome, but apparently Republican fearmongers have succeeded in persuading its most devout that any help from its government is simply “socialism.” Yes, I agree; money isn’t grown on trees and has to be taken from somewhere. But your diatribe into Mexico not having any real money is simply another Right winger ploy, usually to get you to buy gold coins and protein powder from one of these prepper sites. At the end of the day you simple sound like Alex Jones & friends. Perhaps get your news from somewhere else other than Info Wars? This simply has to do with keeping families off the streets…it’s too bad your Republicanism is getting in the way of valuing life.

Jg Jan 27, 2021 - 1:59 pm

Sorry Mom I am not a republican as you label people like a democrat. However, my family will be on the street too unless my mortgage is paid. How will you help me as you promote helping renters? I live in this country too. Politicians can do what they have been doing by stopping eviction and/or foreclosure, not paying their debt. The debtor can make affordable small payments to catch up. The only thing I can conclude by your comment Mother is you are collecting off of other people’s hard work and feel entitled. This country was built by Americans unlike you. You should appreciate the honor to be here and pray for the men and women who gave their life just for you and me to be in the best place on the planet.

Jill frozen Jan 27, 2021 - 3:34 pm

Yourmother sounds like The rapper TI when he tries to throw large words into every convo!
And I don’t think kole was saying Mexico was poor or that you should buy gold coins. They were commenting on the fact that their dollar amount is soo inflated that it takes thousands of pesos as opposed to hundreds.

Kole.. there’s no point. Yourmother is uneducated and refuses to get educated.
JG, very good point.. why are we only “helping” renters. Millions were affected by this pandemic, not just renters.

Pacman Jan 27, 2021 - 6:24 pm

No one is getting “pushed out on the street” as there are multiple moratoriums at the state and county level on evictions despite “Mother’s” righteous finger waving, labeling, and name calling (which used to be called bigotry).

By the way I assume others can connect the special interest dots on this. As mentioned, there are eviction laws/orders already in place. In other words, as of this moment, landlords have to accept $0 monthly income on defaulting tenants, regardless of circumstances. These politicians are basically offering corporate landlords and property management companies 80 cents on the dollar using yet to be funded/secured taxpayer money.

The entire concept stinks from multiple vantage points. It has virtually nothing to do with renters.

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