Under the latest bill signed by California Gov. Gavin Newsom, the state will cover landlords 80% of most tenants’ unpaid rent that has accrued during the coronavirus pandemic — but only if landlords agree to forgive the remaining 20% rent owed them.
The bill which was signed today would extend a state law scheduled to expire 11:59 p.m. Sunday, January 31, 2021 that prevents landlords from evicting tenants who could not pay their rent between March 1, 2020 and January 31, 2021 because of complications due to the coronavirus pandemic.
This latest bill would extend those protections until June 30, 2021. But it would also use $2.6 billion dollars the US Congress recently approved for California to pay off some of that unpaid rent.
The state would pay landlords up to 80% of their tenants’ unpaid rent – but only if landlords agree to forgive the remaining 20% and pledge not to evict the tenants. If landlords refuse this deal, then the state would pay the landlords 25% of their tenants’ unpaid rent. That would ensure those tenants qualify for the state’s eviction protections under AB 3088 and could not be kicked out of their homes until after June 30, 2021.
If you are landlord or property manager with questions about these measures, please contact Hart King today.