SB 91: Four main changes*

  • Five month extension, until June 30, 2021, of the existing prohibition on evictions of residential tenants who are economically affected by COVID-19 and have paid at least 25% of their rent.

  • New State rental assistance program funded by recent Federal stimulus funds providing assistance for many low income tenants.

  • New requirements for landlord collection of COVID-19 rental debt.

  • New protections for tenants affected by COVID-19 (Just Cause eviction protections)

How SB 91 Extends Assembly Bill 3088

Assembly Bill 3088, adopted in August 2020, provides eviction protections to residential tenants who submit declarations to their landlords claiming a financial hardship related to COVID-19.  Under AB 3088, tenants who timely submit their hardship declaration cannot be evicted for failing to pay rent due between March 2020 and August 2020.  In addition, AB 3088 provided that tenants who submit the hardship declaration cannot be evicted for failing to pay rent due between September 2020 and January 2021, so long as the tenants pay at least 25% of the rent due during that period.  SB 91 extends that eviction protection through June 30, 2021, requiring that tenants pay at least 25% of rent due prior to June 30, 2021.  AB 3088 allowed landlords to begin collecting COVID-19 rent as consumer debt in small claims court beginning March 1, 2021. SB 91 extends that date to August 1, 2021. New breach of contract actions can also be filed in Superior Court beginning July 1, 2021.

New State Rental Assistance Program

The new rental assistance program applies $1.4 billion of California’s share of federal rental relief funds to pay rental debt of tenants who meet three criteria:

(1) a member of the household is unemployed or has been financially impacted by COVID-19,

(2) the household is at risk of homelessness or housing instability, and

(3) the tenant earns less than 80% of the area median income. 

The program is scheduled to begin by March 15, but is not guaranteed to have sufficient funds to assist all tenants who meet these criteria.  First priority will be given to tenants earning up to 50% of area median income, and second to residents of communities disproportionately impacted by COVID-19.

Landlords will be able to apply directly to the State on behalf of their tenants for payments of rental debt.  The program will pay landlords up to 80% of tenant rental debt accumulated from April 1, 2020 to March 31, 2021.  As a condition of accepting State rental assistance, landlords must agree to release all other outstanding debt owed by the tenant for the period covered by the rental assistance.  If a landlord does not apply to the State program, the tenant may apply instead, but State rental assistance to the tenant will be limited to 25% of rental debt.  Landlords who refuse to participate may jeopardize their future recovery of rental debt, as courts will look to whether the landlord sought State rental assistance when determining the landlord’s recovery.

*Source: https://www.meyersnave.com/eviction-moratorium-and-rental-assistance-update-sb-91-enacts-changes-for-landlords-and-tenants/

For more information, please also visit https://caanet.org or https://housing.ca.gov.

 Summary of State Eviction Moratorium (AB 3088)

  • 3-day notice to pay rent or quit is now extended to 15-days (not counting weekends or holidays)

  • For unpaid rent accrued between March 1 and August 31, 2020:

    • Tenant cannot be evicted for nonpayment of rent if they return a declaration of hardship within the 15-day period

  • For unpaid rent accrued between September 1, 2020 and January 31, 2021:

    • Tenant cannot be evicted for nonpayment of rent if they return a declaration of hardship within the 15-day period AND pay at least 25% of the missed rent payments by January 31, 2021

  • Beginning October 5, 2020, tenants who do not return a declaration of hardship to their landlords can be evicted

  • Landlords can evict for reasons other than nonpayment of rent beginning September 2, 2020, but tenants will have new protections to ensure this is not done in retaliation for unpaid rent

  • Statewide Just Cause for Eviction protections from the Tenant Protection Act of 2019 apply to all units until February 1, 2021

  • Higher-income tenants (over $100K household income or over 130% of median household income) will have to provide documentation to support their declaration of hardship if their landlord requests it

  • Landlords can begin attempting to recover unpaid rent starting March 1, 2021

  • Local moratoriums will remain in effect until their expiration dates, but cannot be renewed until February 1, 2021

  • Local repayment periods will be overwritten by state law, requiring repayment begin by March 31, 2021 and complete by March 31, 2022

  • If tenants have missed rent payments between March 1, 2020 and September 1, 2020, landlords must provide a specific notice to tenants informing them of their rights under this law by September 30, 2020

  • Landlords must provide hardship declaration forms to tenants along with 15-day notice. This must be in the same language as the rental agreement

  • Additional penalties of $1,000 to $2,500 may be assessed to landlords who do not follow the process (until February 1, 2021)

  • Certain anti-foreclosure protections from the Homeowner’s Bill of Rights are extended to small landlords (1-4 units, non-owner occupied)

Oakland Eviction Moratorium Ordinance

Click here for City of Oakland Eviction Moratorium (July 31, 2020)