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<\/p>\nSacramento, CA… Last Friday, Governor Gavin Newsom signed legislation to extend the state\u2019s landmark eviction moratorium through June 30, 2021, protecting millions of Californians struggling as a result of the economic hardships brought on by the COVID-19 pandemic. With the passage of SB 91, California leads all states by enacting the strongest renter protections in the nation.<\/p>\n
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\u201cOnce again, California is leading the way by enacting the strongest eviction protections in the nation, which will provide relief for millions of Californians dealing with financial difficulties as a result of COVID-19,\u201d said Governor Newsom. \u201cThis law not only provides greatly needed support for tenants, but also provides relief to small property owners in need of assistance to pay for mortgages, thanks to $2.6 billion in federal stimulus funding.\u201d<\/p>\n
On Monday, Governor Newsom, Senate President pro Tempore Toni Atkins and Assembly Speaker Anthony Rendon\u00a0announced<\/a>\u00a0an agreement on the legislation to extend the eviction moratorium established last year under\u00a0AB 3088<\/a>, which was set to expire at the end of the month.<\/p>\n \u201cToday, we took the boldest action in the nation to protect California renters and support mom and pop landlords, but we know that we have more work to do and that we need to help the folks hurting in our communities understand how to access this critically-needed help,\u201d said Senate President pro Tempore Atkins. \u201cThis is an important step. But it\u2019s not the last step, and we will keep working on this issue so that no one has to walk this path alone.\u201d<\/p>\n The legislation signed today pauses evictions for tenants who declare\u00a0under penalty of perjury an\u00a0inability to pay all or part of the rent due to a COVID-related reason. Tenants are still responsible for paying unpaid amounts to property owners, but those unpaid amounts cannot be the basis for an eviction, even after the moratorium ends.<\/p>\n SB 91 also establishes the State Rental Assistance Program to allocate the $2.6 billion in federal rental assistance California will receive. The program will target aid to income-qualified tenants most at-risk with unpaid back rent. Assistance will also be extended to property owners who agree to waive 20 percent of unpaid rent. By agreeing to this waiver, property owners will become eligible for 80 percent in rent reimbursements for amounts owed between April 1, 2020 and March 31, 2021.<\/p>\n \u201cThose of us pushing to get this done knew that there were literally homes and lives at stake. I am grateful for the collaboration that helped us succeed in the face of a very tight deadline. Our work is not over- we must push to find more lasting solutions that protect Californians at risk,\u201d said Speaker Rendon.<\/p>\n Approximately $150 million of the federal funds will be reserved for tenants in counties with populations of 200,000 or less and the additional funds will be available to counties with populations larger than 200,000. The state will directly administer $1.5 billion through contracted entities, and local governments can either join forces with the state or administer their own programs. The State Rental Assistance Program will begin accepting applications from property owners and tenants in March.<\/p>\n SB 91 prohibits the selling or assigning of rental debt that was accrued from March 1, 2020 through June 30, 2021 until the end of the moratorium. However, the prohibition is permanent with respect to the rental debt of people at or below 80 percent of Area Median Income who meet the eligibility requirements of the Rental Assistance Program. Property owners or other housing providers are also prohibited from using COVID-19 related debt as a negative factor for evaluating a housing application, or as the basis for refusing to rent to an otherwise qualified tenant.<\/p>\n The Governor signed the following bills into law today:<\/p>\n Today\u2019s legislation and AB 3088 build on the state\u2019s strongest-in-the-nation\u00a0rent cap and\u00a0eviction protections<\/a>\u00a0passed by the Legislature and signed into law by the Governor in 2019. Continuing efforts to address the housing availability and affordability crisis that has been exacerbated by the COVID-19 pandemic, the Governor\u2019s proposed 2021-22 State Budget provides\u00a0$500 million for infill infrastructure and an additional $500 million in\u00a0low-income housing tax credits to support low-income housing development. The Administration is\u00a0streamlining and reorganizing state housing programs to maximize housing production, while also continuing to support affordable housing.<\/p>\n The Governor has signed\u00a0major legislation<\/a>\u00a0to boost housing production, remove barriers to construction of accessory dwelling units and create an ongoing source of funding for borrower relief and legal aid to vulnerable homeowners and renters. The\u00a02019-20 State\u00a0Budget made a historic $1.75 billion investment in new housing<\/a>\u00a0and\u00a0created major incentives<\/a>\u00a0for cities to approve new home construction. In the first weeks of his administration, Governor Newsom signed\u00a0an executive order<\/a>\u00a0that created an inventory of all excess state land and the Administration has\u00a0launched partnerships with California cities<\/a>\u00a0to develop affordable housing on that land.<\/p>\n\n