New Bill Helps Renters and Property Owners Impacted by COVID-19

May 5, 2020

New Bill Helps Renters and Property Owners Impacted by COVID-19

Financial Relief Brings Immediate Help to Keep People Housed

SACRAMENTO – Today, Senator Anna M. Caballero (D – Salinas) joined with Senator Lena Gonzalez (D – Long Beach), and Assemblywoman Cottie Petrie-Norris (D – Laguna Beach) to introduce Senate Bill 1410 to create the COD-19 Emergency Rental Assistance Program. The bill would authorize the California Department Housing and Community Development to administer a program that provides financial relief for California tenants that cannot pay rent because of financial hardship from the COVID-19 pandemic.

“When the Governor issued the shelter in place order, California renters were already severely burdened by high housing costs. In fact, nearly 55% of California renters pay more than 30% of their household income in rent. Because of layoffs and lost income from the pandemic, more households are now struggling, and have already fallen behind on rent. The Governor and Judicial Council acted to prevent evictions during

this time; however, some renters need a pathway to avoid displacement once we move into the next stages to re-open our economy,” said Senator Caballero.

Executive Order N-37-20 issued by Governor Newsom on March 27th prohibits the courts from processing evictions through May 31st, 2020, and the Judicial Council extended the time by prohibiting evictions until 90 days after the COVID-19 state of emergency terminates. Renters will still owe back due rents at the conclusion of the state of emergency.

Under SB 1410, eligible renters must demonstrate an inability to pay rent due to a COVID-19 related job loss or due to the government’s response to the COVID-19 pandemic. Property owners can receive 80% of their existing rental payments from those tenants, but must agree to not increase rent, charge or collect late fees, or pursue any remaining rent owed during the months covered by the program.

“This is a crisis. Renters need more than just eviction protection – they need to be able to pay the rent that became due while they were out of work. We must take bold actions to prevent the tsunami of potential evictions headed our way.   SB 1410 helps to keep Californians in their homes during the pandemic, and as we return to work. Smartly, SB 1410 helps tenants and landlords at a critical time,” stated Senator Caballero.

 

Senator Anna M. Caballero represents the 12th Senate District, composed of Merced, Madera and San Benito Counties, and portions of Fresno, Monterey, and Stanislaus Counties.

 

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