The world is trying to shake off 2020 and find new ways forward past the trials and tribulations that it has brought. In California, that includes solving the rental crisis that took up most of last year. Californian bill SB 91 prohibits landlords and property managers from using any COVID-19 related debts as a reason to evict their problematic tenant.
SB 91
Governor Newsom signed SB 91 into law in late January 2021 as it had passed senate with no nay-sayers and only one against in the assembly. The bill, in conjunction with the eviction moratorium that lasts until March, will make it doubly difficult for property owners to get rid of their non-paying renters. However, it isn’t all bad news.
The world is trying to shake off 2020 and find new ways forward past the trials and tribulations that it has brought. In California, that includes solving the rental crisis that took up most of last year. Californian bill SB 91 prohibits landlords and property managers from using any COVID-19 related debts as a reason to evict their problematic tenant.
SB 91
Governor Newsom signed SB 91 into law in late January 2021 as it had passed senate with no nay-sayers and only one against in the assembly. The bill, in conjunction with the eviction moratorium that lasts until March, will make it doubly difficult for property owners to get rid of their non-paying renters. However, it isn’t all bad news.
The law doesn’t just protect landlords. It will also use federal funds to help repay a resident’s debts in some cases. Depending on the tenant, a landlord may receive up to 80% of the lost rent money from April 1st, 2020 through March 31st, 2021. The remaining debt must be forgiven in order to accept this aid, however, refusing to forgive it means the Department of Housing and Community Development (HCD) will only pay 25% of the debt. The remaining 75% will be up in the air, then.
The law doesn’t just protect landlords. It will also use federal funds to help repay a resident’s debts in some cases. Depending on the tenant, a landlord may receive up to 80% of the lost rent money from April 1st, 2020 through March 31st, 2021. The remaining debt must be forgiven in order to accept this aid, however, refusing to forgive it means the Department of Housing and Community Development (HCD) will only pay 25% of the debt. The remaining 75% will be up in the air, then.
How to Qualify
If your tenant has a high paying job that they were furloughed from, you may be out of luck when it comes to this bill. When asking for your federal payback, the tenant in question must earn less than 80% of the local median wages. If your tenant earns above that margin, you will need to wait for future legislation to help you out, or find other means of moving forward.
How to Qualify
If your tenant has a high paying job that they were furloughed from, you may be out of luck when it comes to this bill. When asking for your federal payback, the tenant in question must earn less than 80% of the local median wages. If your tenant earns above that margin, you will need to wait for future legislation to help you out, or find other means of moving forward.
If the tenant does qualify, and you accept the 80% rental assistance, then it may be good news all around. It also includes a note that tenants are required to pay “an amount that equals at least 25 percent of each rental payment that came due or will come due during the period between September 1, 2020, and June 30, 2021” of all rent that they owe, which is better than nothing.
If the tenant does qualify, and you accept the 80% rental assistance, then it may be good news all around. It also includes a note that tenants are required to pay “an amount that equals at least 25 percent of each rental payment that came due or will come due during the period between September 1, 2020, and June 30, 2021” of all rent that they owe, which is better than nothing.
As long as these terms are met, however, your non-paying or COVID-affected tenants cannot be evicted, but at least you may be able to recoup some of your losses. In the meantime, all there is to do is look to the future.
As long as these terms are met, however, your non-paying or COVID-affected tenants cannot be evicted, but at least you may be able to recoup some of your losses. In the meantime, all there is to do is look to the future.
