Sensing that the State of California was sitting on the edge of an ‘eviction cliff’, Governor Gavin Newsom signed a last-minute bill (AB 832) that effectively extends California’s eviction moratorium until September 30th.
The extension of California’s eviction moratorium, along with the 30-day extension of the CDC eviction moratorium, gives some tenants a little more time until they have to start paying rent again like they did before the start of COVID-19.
Does AB 832 Apply To All Tenants In California?
Even though some tenants might rejoice about the extension of California’s eviction moratorium, the reality is that it’s not going to apply to all tenants.
AB 832 is only going to apply to ‘low-income tenants’ who qualify, and small landlords, but the good news is that there’s a pool of $5.2 billion in rent relief that the State of California can use to get both tenants and landlords back on track financially.
The plan promises to allow tenants direct access to rental funds should their landlords choose to not participate in the program and landlords can also receive compensation even if their tenants have vacated their units.
A Step In The Right Direction?
Billed as the ‘most comprehensive rent relief program of any state in the nation’, AB 832 is certainly a step in the right direction at stopping a potential ‘eviction wave’ from happening but the big question is will $5.2 billion be enough or will we still be in the same position by September 30th?
California is certainly heading in the right direction with AB 832 because it promises to pay 100% of a low-income tenants past due rent but will this money be dispersed in time to those who need it?
Once the money is distributed, it will certainly be a welcome relief to those who need it but tens of thousands of renters behind on their rents Statewide, it may take a lot more than $5.2 billion to get the rental market in California back on track.
Contact RPM Central Valley
At RPM Central Valley, we’re your neighborhood property manager! This means that you can count on us to offer you all of the property management services that you need including sourcing, acquiring and managing your properties.
To learn more about the services that we can offer you, contact us today at (209) 572-2222 or click here to connect with us online.