After two years, four extensions and untold numbers of public and private aid programs, California’s broad safety net for renters struggling through the pandemic is being dismantled this month.
Lawmakers this week extended a statewide eviction moratorium through June, but only for families that have applied to the state’s emergency relief assistance program, Housing is Key. The $5.5 billion relief fund closed to new applications March 31.
What comes next, housing experts say, is a lot of uncertainty.
State courts reopened to a broad range of evictions April 1. Failing to do a couple of things — paying April rent and not having an active application for state aid — could put tens of thousands of Bay Area tenants at risk of displacement.
The picture of housing insecurity across the state is bleak, even as California emerges from COVID-19 restrictions, advocates say. The state has not reached pre-pandemic levels of unemployment, and the service industry and low-income workers have been hit hard. About three-quarters of a million California renters were behind on their rent in February, according to the National Equity Atlas.
State housing officials, attorney and advocates offered insights on what to expect and what to do.
What does the new law, AB 2719, do?
It extends eviction protections for certain renters through June 30. The moratorium only applies to renters with pending applications with Housing is Key. Landlords can seek to remove tenants for other reasons, including health and nuisance issues.
The legislation also gives landlords something they wanted — a ban on new, local eviction moratoriums. A few Bay Area cities, including San Francisco and San Jose, were considering new protections.
The state emergency rental relief program will only cover rent owed between April 1, 2020 and March 31, 2022. State officials estimate at least 165,000 tenant families have pending aid applications, although outside estimates put the number much higher.
What should tenants do if they cannot pay April’s rent?
Contact a nonprofit housing lawyer, or seek help from private charity or various local government programs aimed at preventing homelessness. The bottom line is you should try hard to pay it. The relief program will not cover April rent, and unpaid rent in future months can be cause for eviction.
Advocates encourage tenants to clearly mark their payment to indicate the money applies to the April 2022 bill. Otherwise, a property owner might consider the money a partial payment on back rent.
Tenant advocates expect some landlords will try to remove long-delinquent tenants for missing April’s rent. “Don’t move out if you don’t have to,” said Karen Kontz of the Law Foundation of Silicon Valley.
Are there any local protections for renters?
Tenants in Oakland and Alameda County are still protected from evictions for nonpayment. The local moratorium was enacted before the state preempted other municipalities from passing new restrictions. Other parts of the state, such as Los Angeles, have their own moratoriums.
What happens to tenants with pending applications with Housing is Key?
Tenants with eligible pending applications can only get paid for rent owed up until March 31, 2022, officials with the Department of Housing and Community Development (HCD) said. They estimate about half of all program applicants are protected by local moratoriums going forward.
The program has paid out about $2.6 billion to landlords and renters. State officials expect to pay back rent for all eligible, pending applications. But they will likely need more funding — California has requested about $1.9 billion more from federal emergency relief funds, and so far has received only a fraction of that.
Will landlords get paid for pending applications if renters are evicted or choose to leave?
Landlords have a powerful incentive to keep delinquent renters housed — the promise of government money. And eviction attorneys are quick to note that bringing a case to trial is neither quick nor cheap.
Applications generally require both landlords and tenants to provide information, and most payments are made directly to landlords. HCD officials said if a landlords evicts while a state payment is pending, they will not receive that payment. However, if a tenant with a current application chooses to leave, a landlord will receive rent owed.
What resources are available to sort through the new law?
Several landlord associations offer webinars and updates on state policy for members, including the California Apartment Association.
San Francisco eviction attorney Daniel Bornstein said he’s advising clients not to jump the gun. But he believes landlords will be more likely to send eviction notices to tenants who have the ability to pay rent, but stopped sending in checks during the pandemic.
“It’s quite motivating to serve a three-day notice to pay or quit,” he said.
For tenants, local government housing departments, private charities and nonprofit law firms can help navigate the new law. The state has partnered with many established local charities and housing organizations to help provide assistance and funds to immigrant and non-native English speaking residents.
Source: www.mercurynews.com