Skip to comments.California Enacts Eviction Moratorium. Ban on evictions until February, signed by Gov. Gavin Newsom, replaces prior relief set to expire this week
Posted on 09/01/2020 2:50:35 PM PDT by karpov
Californias legislature passed a bill late Monday granting renters who are financially affected by the Covid-19 pandemic a reprieve from evictions, which were set to resume Wednesday when prior relief expires.
The bill passed with supermajorities in both houses of the Democratic-controlled legislature in the final hours of its two-year legislative session and addresses what advocates had said was a looming wave of evictions. Democratic Gov. Gavin Newsom, who crafted the compromise with legislative leaders, tenant advocates and landlord groups last week, immediately signed the bill into law. It takes effect immediately.
Backers say it will help keep Californias 17 million renters housed as the states economy remains largely closed during the pandemic. The measure would forestall until Feb. 1 evictions for tenants who declare that they have lost income due to the impact of Covid-19 on the economy.
All back rent owed by the tenant from March 1 through Aug. 31 of this year would be converted to consumer debt and couldnt be used as grounds for eviction. To receive continued protection, a tenant would have to pay at least 25% of their cumulative rent between Sep. 1 and Jan. 31. The remaining balance would also become consumer debt, which landlords could pursue in small-claims court starting March 1 of next year.
Even the bills strongest supporters said it was only a stopgap that leaves tenants treading water financially unless and until the federal government provides additional stimulus funds to keep families and landlords afloat.
Eviction relief was one of the most hotly contested issues in the statehouse during the final weeks of the legislative session, which was even more chaotic than usual due to the coronavirus pandemic.
(Excerpt) Read more at wsj.com ...
Awesome! Six months rent free. Any break on utilities as well? What a place huh?
This is devastating a lot of landlords who can’t evict unless someone tries to murder another tenant or turns the unit into a meth lab.
Glad I bought stocks instead of real estate when covid started!
I think it’s predictable, that a certain number of people will never pay that back rent.
If it is “consumer debt”, meaning that it’s no longer officially past due rent which could subject someone to eviction for non-payment, guess what priority people will put on paying it?
I could imagine too, some people deciding to move, and “start over”, in a new place, and simply never paying that debt, which now is in a different legal status and not officially unpaid rent.
I cant imagine how Id pay 920 a month (mortgage) at the end of this if the situation included mortgages. Its insane that some who have 2,000 dollars in rent can come up with 24K when this moratorium is over. Impossible for most people.
will this STOP Los Angeles from Evicting the Church renting their parking lot??
BANKERS will Soon OWN ALL Commercial and Rental Properties.
Some people think of landlords as major real estate corporations, with deep pockets, which can easily absorb these losses.
Many landlords are small companies, or even individuals who have invested in some properties, and depend on that rental income to pay the mortgage and operating expenses on those properties.
The tax collector will not cut a break to the landlord, for not paying property taxes because tenants didn’t pay rent.
The mortgage holder will not cut a break to the landlord, for being late on the mortgage because of poor cash flow because the tenants didn’t pay rent.
What comes below 3rd world status?
I guess I’ll have to check Newsance’s latest color scheme of charts for more detail.
It is a thinly disguised government taking.
The government that makes this law should have to pay the debt — and now.
Landlords need to band together and sue.
“I wonder how much of the unpaid rent converted to consumer debt will ever be collected”
Slim to none.
“Landlords would rather have a tenant paying something than a vacant apartment”
I own apartments. I would rather keep them empty. No carpets etc to replace. I would shut off the water and keep heat at 55 degrees in winter.
What about real estate taxes on these rental properties. Are they stopped too?
Bwahahahahaha! Now you’re pushin’ it.
[[[All back rent owed by the tenant from March 1 through Aug. 31 of this year would be converted to consumer debt and couldnt be used as grounds for eviction. To receive continued protection, a tenant would have to pay at least 25% of their cumulative rent between Sep. 1 and Jan. 31. The remaining balance would also become consumer debt, which landlords could pursue in small-claims court starting March 1 of next year.]]]
Good luck with that.
I just sent in my rent check, like an honest sucker.
Newsom is out of his mind.
Wrong. Corporate property management companies like the slimy AMCRENT have used aggressive debt collectors on all tenants since April. Unemployed tenants are subject to huge wage garishments once they do find work again. Think thats why they dont look for another job. They know not only will the job pay lower, but 25% of their future wages will be used to pay off the Garnishment. Unemployment cannot be garnished.
Any relief on R/E tases until February? Didn’t think so.
Do landlords have to make repairs for those not paying?
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