Legal

COVID-19 Regulations Update


After over a year of the COVID-19 pandemic shifting quite a bit for both property managers and landlords, restrictions continue to be updated as we begin to see the long-term financial impacts of COVID-19. Many industries have been affected by the pandemic, but for those managing properties, perhaps even more so. The eviction moratorium, and the COVID-19 Tenant Relief Act (CTRA) are among the many guidelines and regulations that shifted as a direct result of the pandemic, and widespread, record unemployment rates.

 

This article serves as a brief overview of the key changes or additions that have taken place. It is, by no means, a comprehensive list of the changes and how they can be applied to specific situations between a landlord and tenant. To learn more about these laws, and how they may impact your property, you can visit CAAnet.org.

 

If you are interested in learning more about the restrictions and guidelines that changed during this time, you can view them on our Learning Hub, here:

 

 

Both those managing properties, and those living in rental properties, have been working to create an amendment to SB91, the COVID-19 Tenant Relief Act. Though differing in the specifics of what new regulations would entail, both tenants and landlords alike fought for the development of a more effective rental assistance program than what had previously been put in place.

 

What is AB832?

On June 18, 2021, the Governor of California signed AB832, which aimed to meet a compromise between both landlord and tenant groups fighting for changes. AB832 will extend the COVID-19 Tenant Relief Act until September 30, 2021. It will allow areas with ongoing rental repayment periods which have been deferred by local government to move the repayment date until May 31, 2023.

 

It has the potential to create a six-month delay in hundreds of pending unlawful detainers due to poorly drafted statutory language.

 

What is the Rental Housing Recovery Act

A new program, the COVID-19 Rental Housing Recovery Act (the Recovery Act), was also put in place on June 18, 2021. The Recovery Act extends eviction restrictions from October 1, 2021, until March 31, 2022.

 

 

Tenants impacted by a COVID-19 related financial hardship applying for rental assistance

Despite the new legislation, there are still difficulties when applying them. The program asserts that tenants who make more than the 80% AMI can not access the program altogether.

 

In Los Angeles, the numbers are even lower, at 50% of AMI. Because of these restrictions, many tenants are not eligible for assistance that they may desperately need, as a direct result of the COVID-19 pandemic.

 

The recovery act has several changes, including that the program will pay all past-due rent that took place starting in April of 2020, for those that are eligible. This can even apply to tenants who may no longer be living at the property, but still owe past-due rent. This money will be paid directly to the tenant, who is then required to provide their landlord with the money.

 

Eviction Moratorium extended

Tenants have continued protections in place, making evictions illegal as long as they follow the guidelines. This includes returning a declaration of COVID-19 related financial hardship, paying 25% of the rent that was due between September 1, 2020 and September 30, 2021, on or before September 30, 2021.

 

The CDC initially issued a moratorium. It was later ruled that the moratorium was unconstitutional, as the CDC doesn’t have the authority to issue such a ban.

 

We encourage everyone who is managing a property to look into the most recent information that impacts their local guidelines. It is essential to look into state laws and ensure that you are meeting both federal, and local guidelines in order to best protect your property and yourself.

 

In California, the eviction moratorium remains in place until September 30, 2021. Other states may only continue the moratorium through July.

 

The ban on no-cause evictions has also been extended through September 30, 2021, which will ensure that landlords must state their reason for eviction on any termination notice.

 

Required disclosures to tenants

With the change in guidelines, landlords are required to provide an up-to-date disclosure to all tenants who have missed any payments from March 1, 2021 and on, by July 30, 2021.

 

Pay or Quit notices

While previously, SB91 allowed for Pay or Quit notices, this should be discontinued after June 30, 2021. A new notice will be developed with the new updates included. The new notice can be served in months where a tenant does not pay rent, from July 1, 2021, to September of 2021.

 

Third party collections and small claims filings

Third party collections and small claims filings have been pushed back to November 1, 2021. If the tenant has met the requirements by filing a declaration of COVID-19 related financial hardship and has paid the required 25% of unpaid rent by September 30, 2021, the debt can’t be the cause of an eviction. The landlord can file a small claims action to claim the remaining rental payment, but must be able to prove they applied for rental assistance for the tenant.

 

 

This article serves as a brief overview of the new legislation put in place on June 28, 2021. For more information on the updated laws, you can visit The California Apartment Association. If you have any questions about how your home or rental property may be affected, reach out to us at (805) 267-1158, or fill out our contact form.

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