Capitol Alert
California eviction ban extended through June under new law. Here’s how it works
With days to spare before a statewide eviction moratorium was set to expire, Gov. Gavin Newsom signed a law extending the ban until summer to give tenants more security during the coronavirus pandemic.
“The issue of evictions, the issue of this moment and the economic anxiety so many people are struggling and suffering through is the issue, and we have not lost sight of that,” Newsom said on Friday at a signing ceremony.
The Judicial Council anticipates 240,000 evictions filings this year, double the amount from 2019-2020, “given the potential universe of 903,000 households at risk.” And the Federal Reserve Bank of Philadelphia noted in an October 2020 report that more than 239,600 California households owe $1.67 billion in rent.
With the moratorium now set to last until June 30 of this year, tenants who pay at least 25% of their rent — either monthly or in one lump sum — will receive eviction protections.
The law also creates a program for eligible landlords to receive rent subsidies, provided from $2.61 billion in federal funds, that will cover up to 80% of the total amount of rent in arrears, provided that the landlords forgive the remaining 20% and don’t seek evictions.
The program aims to pay 25% of rent arrears for tenants applying for assistance where the landlord does not agree to forgive unpaid amounts or forgo evictions.
The program requires landlords to notify tenants who owe back rent of the availability of federal funds to assist them, and landlords will be prohibited from evicting tenants if they failed to notify them.
Some eligibility rules apply. This includes that the renter must have an income no more than 80% of the area median income, the renter must demonstrate specified financial hardships such as unemployment or income reduction, and also must show that there is a risk of homelessness or housing instability.
The program will prioritize people whose incomes are no more than 50% of the area median income.
Sen. Nancy Skinner, D-Berkeley, said in a statement that “millions of Californians can now breathe a sigh of relief. Renters won’t face eviction, landlords can be confident some portion of back rent will be paid, and struggling homeowners will be protected against foreclosure.”
The bill passed 71-1 out of the Assembly, with Assemblyman Kevin Kiley, R-Rocklin, voting no. It also passed 34-0 on concurrence in the Senate.
In a tweet Thursday afternoon, Assembly Speaker Anthony Rendon, D-Lakewood, wrote that California’s tenants, impacted by COVID-19, need help now to avoid homelessness.
“This is our first step in protecting tenants and small landlords, not our last. We have more work to do,” said Rendon, who also delivered a speech on the bill.
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