The COVID-19 Rent Relief program has been a long-awaited solution to the financial hardships and unpaid rent caused as a direct result of the pandemic.
Many Californians have struggled to pay their monthly rent in full. Although rental assistance has been discussed extensively, there have not been clear guidelines or the opportunity to apply until recently.
Low-income Californians will be prioritized first when it comes to distribution of the $2.6 billion in aid. See our previous COVID-19 related article here, to learn more about how the aid will be distributed, and who will qualify.
Both landlords and tenants are able to apply for aid to help cover their rental debt, if that debt came from financial hardship as a direct result of COVID-19. Eligible rental debt must have occurred during April 1, 2020 and March 31, 2021.
Landlords have a huge incentive to participate and apply on behalf of their tenants. When a landlord takes part in the process and applies, they are eligible for up to 80% of their tenant’s unpaid rent, on the condition that they waive the remaining 20% of unpaid rent.
If a tenant applies on their own behalf, without the landlord’s participation, they may only receive 25% of their unpaid rent between April 1, 2020 and March 31, 2021.
Because SB91 protections for tenants expire on June 30, 2021, this aid may be essential for tenants to stay in their homes, and for landlords to receive money for any unpaid rent during the last 11 months.
To apply, you will need to have all appropriate documentation. According to CA.gov, this information includes:
- Property Deed
- Mortgage Note
- Property Tax Statement
- Copy of Property Insurance Statement
- Lease or rental agreement reflecting tenant’s name, address, and monthly rent due
It has been determined that landlords must use all payments to satisfy the unpaid rent, and the tenant’s household income must be at below 80% of the Area Median Income. Tenants must also confirm that they are eligible and sign the application. According to CA.Gov, tenants may need documents such as:
- Letter of termination from a job
- Pay stubs with their employer’s information
- Proof of application for unemployment benefits
- Evidence that unemployment benefits have expired, including benefits through the CARES Act
- Tax records if self-employed
- And more
The application period will open soon, so don’t hesitate to check back as we keep updated information. You can learn more at CA.Gov, here.
