Update: The State Legislature introduced AB 832 today which, among other things, allocates additional federal rent relief dollars to the state rental assistance program for housing providers with qualified tenants. Unlike current law, which caps recoupment by housing providers to 80% of back rent owed by qualified tenants, AB 832 ensures housing providers receive 100% of that back rent. Those housing providers who have already received 80% of back rent will receive the remaining 20% automatically.
AB 832 also extends the state’s COVID-19 eviction moratorium through September 30, 2021, while prohibiting cities and counties from adopting stricter eviction moratoria through March 31, 2022. This legislation arrives just one day after the U.S. government extended the nationwide eviction moratorium through July 31, 2021. Tenant groups had been pushing for an extension of the state eviction moratorium through December 31, 2021. C.A.R. is continuing to analyze the various provisions of the bill so stay tuned for more details. The Legislature could vote on AB 832 as early as Monday, June 28, 2021.
Original post:
The CDC has extended the eviction moratorium for one final month through July 31, 2021. The Administration will also be announcing a series of actions to help state and local governments prevent evictions and expedite distribution of rental assistance to housing providers.
Multifamily property owners with Fannie Mae or Freddie Mac mortgages who elect for forbearance will also have to comply with tenant protection requirements, until their forbearance period ends.
Specifically, property owners who enter into a new or modified forbearance agreement must:
Inform tenants in writing about tenant protections available during the property owner's forbearance and repayment periods; and
Agree not to evict tenants solely for the nonpayment of rent while the property is in forbearance.
Additional tenant protections apply during the repayment periods. These protections include:
Giving tenants at least a 30-day notice to vacate;
Not charging tenants late fees or penalties for nonpayment of rent; and
Allowing tenant flexibility in the repayment of back-rent over time, and not necessarily in a lump sum.
Mortgage Forbearance and Foreclosure Moratorium
To protect homeowners with federally backed mortgages against foreclosure, the Administration is extending the foreclosure moratorium until July 31.
Additionally, homeowners impacted by the pandemic with mortgages backed by HUD, VA, USDA, Fannie Mae, and Freddie Mac, as well as housing providers with Fannie Mae or Freddie Mac multifamily mortgages, may apply for forbearance until September 30, 2021.
More information can be found below: