California Extends Eviction Moratorium Again

June 30, 2021 | Category: BPE Newsletter, COVID-19, Rental Assistance

California Extends Eviction Moratorium Again

By: D. Keith Dunnagan, Esq. and Alexandra Bohlman, Esq.

June 30, 2021

As part of the ongoing COVID-19 relief measures enacted by the State of California, a new Assembly Bill was approved by the Governor of California as of June 28, 2021, taking effect on July 1, 2021. The statewide eviction moratorium was previously set to expire on June 30, 2021, but has now been extended through September 30, 2021. Unlike previous extensions of the moratorium, this new Assembly Bill (AB 832) announced the new COVID-19 Rental Housing Recovery Act, which provides up to 100% rental assistance to tenants that are income-based eligible.

Below are some key dates and changes that were approved of through AB 832:

    The eviction moratorium is extended through September 30, 2021. What does this mean? It means that tenants cannot be evicted for nonpayment of rental debt through September 30, 2021, if they have been financially impacted by COVID-19. A landlord is permitted to serve a 15-day notice to pay unpaid rent, however, the landlord must include a COVID-19 Financial Distress Notice with the Notice to Pay Rent. If a tenant has been negatively impacted by COVID-19, the tenant is able to sign the Financial Distress Notice, under the penalty of perjury, to notify the landlord that they are unable to pay the entire unpaid rental debt. If this is the case, the tenant has until September 30, 2021, to pay 25% of the rental debt that has accrued from September 1, 2020. If the tenant does not submit this form and pay 25% of their unpaid rental debt by September 30, 2021, their landlord may proceed with an unlawful detainer action.
    There are new notice requirements that landlords must abide by during the moratorium, including new language for Notices served after July 1, 2021.
    Landlords cannot initiate a small claims action for unpaid rental debt until November 1, 2021. Under the previous and new assembly bills, the small claims court has jurisdiction over all COVID-19 rental debt cases no matter the amount of rental debt (small claims court retains jurisdiction over all other claims up to $10,000).
    Starting October 1, 2021, a landlord may serve a 3-day Notice to Pay Rent or Quit on a tenant, in which the tenant must pay 100% of the rental debt prior to the expiration of the Notice. However, under the new Rental Housing Recovery Act, the tenant may apply for government rental assistance to receive up to 100% of the amount due. The criterion for the assistance is based on the tenant’s income. In the event a tenant does not pay the unpaid debt by the end of three (3) days of being served with a Notice, the landlord must apply for the governmental rental assistance. Per the amended regulations, it appears the landlord is required to fill out their portion of the assistance application, and the remainder of the application will be sent to the tenant to be filled out by the tenant so the government agency can determine if the tenant is income eligible. If the application is denied, or left incomplete by the tenant for 15 days, the landlord should receive a letter denying the application. At this point, the landlord may proceed with an unlawful detainer action. At this time, this process is required through March 31, 2022.
    For information on how the funding from AB 832 will be distributed throughout the state, see the California Health and Safety Code Section 50897. For information on tenant income eligibility, see the California Health and Safety Code Section 50897.1.

California has taken a tenant protection approach during this unprecedented time. Staying a head of changes in the law is vital during times of uncertainty. If you have questions or concerns regarding landlord/tenant rights and protections, seek advice from a competent legal professional. The information presented in this article is not to be taken as legal advice. Every situation is different. If you are facing a legal issue of any kind, get competent legal advice in your state immediately so that you can determine your best options.

The information presented in this article is not to be taken as legal advice. Every situation is different. If you are facing a legal issue of any kind, get competent legal advice in your state immediately so that you can determine your best options.

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