Property Management Blog

Latest Eviction Moratorium Update

Friday, July 2, 2021

In mid-June, the CDC extended the eviction moratorium until July 31st. Stating that this will be the last time they extend the moratorium. 

The State of California has extended the moratorium until September 30th. However, they are opening up $5.2 billion to pay Landlords 100% of back owed rent and more. We have already gotten two checks for Owners of over $14,000 each, so this is the real deal.

The new bill AB 832 includes some benefits for both sides. 

Here’s how it shakes out:

Resident Side: 

1. Residents must remit a declaration of hardship and pay at least 25% of their monthly rent between Sept. 1, 2020, and Sept. 30th, 2021, or in bulk by Sept. 30th to avoid eviction. 

2. Evictions pertaining to non-payment of rent could resume coming Oct. 1st. The exception is for those that earn less than 80% of the area median income and were financially impacted by COVID-19 will have another 6 months to apply for rental assistance funds. 

3. Residents and landlords will be able to apply for 100% of the back owed rent plus three months of future rent. Previously, if the landlord declined to participate the resident would only receive 25%. 

4. Evictions over non-payment of rent will be blocked from appearing on the resident's credit. 

Who is eligible for relief?

Resident’s whose household income falls below 80% of the area median income during 2020 and 2021. This bracket varies by region. Residents below 50% will take priority. 

Under the new bill, residents that moved out and owe money can now apply for assistance to pay back the monies owed. This option was not available previously. 

Income bracket

Landlord Side: 

Landlords will not be able to evict over non-payment of rent until October 1st. After that, you must prove that you attempted to seek assistance. The case can only proceed when the resident fails to complete their portion of the application. 

Landlords will be able to apply for 100% of the back rent plus 3 months of future rent. 

If the landlord and resident both apply for funding, the funds will go to the landlord or property management company directly. 

Where’s the money? 

$2.6 billion is existing from the relief bill that was effective January 2021, plus another $2.6 billion from the State. 

The distribution of these funds is moving incredibly slow. Of the initial $2.6 billion, a mere $61.6 million has been dispersed. 

Advocate groups on both sides are pushing for an expedited distribution of all funds. 

The State allowed local jurisdictions to disperse funds on a local level, bypassing the backlog on the State level. Sadly, most of those cities have maxed their funding. The City of Riverside closed its local program after receiving requests for nearly $12.5 million dollars in back owed rent. 

The hope is that once the State starts distributing the money to the local jurisdictions, the rent applications will start to be paid. 

If you are not participating in the program and your resident is behind in rent, please contact Iesha today to get set up. For those who wish to not participate, please contact Iesha right away to discuss the matter further. 

By not participating, you are risking future evictions and the ability to collect any back owed rent. 

As always, we will continue to keep you updated as things change in the coming weeks and months.


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