The California state legislature has passed, and the governor signed, AB832. Here is the text of AB832
See also Governor Newsom AB832
The highlights are:
- Extension of Moratorium. Senate Bill 91, the statewide eviction moratorium and rental assistance bill, is to be extended though and including September 30, 2021, and then no further extensions.
- Increased Rental Assistance. Rental assistance funding will be increased from 80% of past due rent to 100% of past due rent for qualified renters. Housing providers and renters that had previously applied for the 80% will not be required to reapply as the process is to be streamlined so that the additional 20% will be automatically paid.
- Tenants May Apply on Own / No Landlord Assistance Required. In the event housing providers refuse to cooperate in the rental assistance program by filing an application for assistance, renters may apply on their own for 100% of past due rent; however, once approved, renters will be required to agree in writing, under penalty of perjury, that they will utilize the rental assistance funds to pay past due rent.
- Renters That Moved On to Now Count. Housing providers will be entitled to apply for 100% rental assistance even if their renter has moved-out and so long as rent is owed due to COVID-19 related financial impacts.
- Preemption of Local Moratoriums. Senate Bill 91 will be amended to include a provision to preempt any further extension of local eviction moratoriums through March 31, 2022. Absent seeing the exact language, it is unclear how this might impact the City of Los Angeles’ eviction moratorium which current does not have an expiration date. However, clearly cities with expired eviction moratoriums, such as Santa Monica, will be precluded from making further extensions until March 2022.
- Debt Masking Protections. Debt masking protections for tenants are to become permanent so that credit screening companies may not report past due COVID rental debt.
- Federal Claw-Back of Funds. The State of California now has a timing issue and must payout specified amounts of the Federal money it received to avoid Federal claw-back of funds (e.g., refund) by September 2022 and then again by September 2025.
- Possible Evictions Allowed for Tenants That Have Not Been Impacted. Landlords may be permitted to evict renters who can afford rent but that have not been paying rent and taking advantage of the eviction moratorium.
- May Evict Tenants That Do Not Cooperate. For renters that do not apply for rental relief funds, but the rental property owner has applied, landlords may then proceed with the eviction process beginning on October 1, 2021.
- 3-Day Notices Are Back. As of October 1, 2021, housing providers may again serve three-day notices, provided they indicate that they have applied for rental assistance, and there will then be 20-day time period to verify the application for rental assistance. These provisions will continue until March 2022.