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Dear Friends,
On Friday, the Governor signed SB 91, which extends tenant eviction and homeowner protections under AB 3088 until June 30th, 2021, and creates a program – in partnership with federal, state, and local governments – to provide rental assistance to tenants and landlords to address unpaid rental debt.
What do you need to know now?
- Eviction Relief. Tenants cannot be evicted for a COVID-19 related hardship that accrues between September 1, 2020 – June 30, 2021, if tenant returns declaration of hardship under penalty of perjury and pays at least 25% of the rent due by June 30, 2021.
- Rental Assistance. Federal law allocates funds for a statewide program, as enacted by SB 91 and authorizes eligible local jurisdictions the option of creating their own program. While applications are not expected to be available until March, you should also check on whether your local jurisdiction plans to stand up its own program. We will continue to monitor and provide legislative oversight as the program is being developed. For more information, please visit http://housingiskey.com or call the California Housing is Key COVID-19 Assistance Line at 1-833-422-4255.
- Once the statewide program is available, who is eligible and what does it do?
- Eligibility. Pursuant to federal law, income must be below 80% AMI based on total household income for calendar year 2020 or a household's monthly income at the time of application.
- Prioritization given to households 1) below 50% AMI or 2) where they have been unemployed for the 90-day period prior to application. The statewide model will utilize rounds to prioritize those who need the assistance most.
- The rental assistance is available to individuals regardless of citizenship or immigration status.
- Program. Prioritization will be given to rental arrears. Prospective rent and utility arrears can be addressed thereafter. Utilities include electricity, gas, water and sewer, trash removal and energy costs, such as fuel oil.
- Additional Tenant Protections under SB 91. In addition to the tenant protections provided under AB 3088 which have been extended, the following NEW protections have been enacted:
- Prohibits a landlord from applying a tenant's security deposit to satisfy COVID-19 rental debt.
- Prohibits a landlord from charging late fees on the repayment of COVID-19 rental debt.
- Imposes a moratorium on a landlord's ability to sell or assign COVID-19 rental debt until June 30, 2021.
- Prohibits a landlord from selling or assigning COVID-19 rental debt of a tenant who qualified for the rental assistance program and is below 80% AMI.
- Imposes a moratorium on legal actions seeking to recover COVID-19 rental debt until July 1, 2021.
- Allows courts to reduce a COVID-19 rental debt damages if a landlord refused to participate in the rental assistance program with an qualified tenant.
- Requires a landlord seeking to recover COVID-19 rental debt to provide documentation that the landlord has made a good faith effort to cooperate with a tenant who qualifies for the rental assistance program.
- Allows a court to limit attorney's fees in COVID-19 rental debt cases.
- Prohibits a housing provider from using COVID-19 rental debt as a negative factor in evaluating a tenant's rent a unit.
Sincerely,
Senator Steven Bradford
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