BREAKING NEWS - CA Eviction Moratorium
In an update to the previous post, it does not appear that the federal eviction moratorium that just went into effect Friday will apply for local developers, as, earlier this week, the state of California has passed its own eviction moratorium that supersedes the federal counterpart.
CA bill AB 3088 passed August 31, 2020, extends the moratorium, or prohibition, on residential property evictions due to COVID, until February of next year. According to the new law:
For rent that was due between March 1, 2020 and August 31, 2020:
Tenants cannot be evicted if they provide a declaration stating they experienced financial hardships due to COVID-19 after receiving a notice of non-payment of rent.
Additionally, only occupants making over $100,000 a year would be required to show proof of that financial hardship.
Any rents owed become a civil debt that landlords can recover in small claims courts, beginning March 1, 2021.
For rent due between September 1, 2020 and January 1, 2021:
Tenants cannot be evicted if they respond to a notice of non-payment of rent within 15 days with a declaration stating they experienced financial hardships due to COVID-19 AND if they pay at least 25% of their rent by or before January 31, 2021.
If the tenant, however, does NOT provide a declaration of economic hardship within the notice period, evictions can begin as soon as October 5, 2020 for non-payment of rent that is owed within this period (not the 3/1/20 – 8/31/20 period).
Evictions for non-payment of the 75% of rent due during this 5 month period can start beginning February 1, 2021, so long as the above conditions were met and rent remains unpaid.
If left unpaid, the rent owed becomes a civil debt that landlords can recover in small claims courts, beginning March 1, 2021.
A few important things to note as well:
25% of each rental payment can be paid either once a month or in delayed payments so long as all (25% of the 5 months of rent) is paid by or before January 31, 2021.
Notice periods for failure to pay rent are extended from 3 to 15 days
Landlords are required to provide blank copies of the hardship declaration when serving the 15 day notice of non-payment of rent
As a landlord, you're going to want to make sure you are fully documenting every notice that is provided and ensure its timeliness, as failure to adhere to the guidelines in the law can result in fines.
Read the full order here.
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