01 Jul California Eviction Moratorium Extended Until September 30th, 2021
In a last-minute move to stop a ‘tidal wave’ of evictions from hitting California, Governor Gavin Newsom has extended the state’s eviction moratorium for another 3 months, until September 30th.
Even though an extension of the eviction moratorium may be good for tenants, is it going to help landlords?
The answer to this question is yes and no; some tenants may not qualify due to their income, and some landlords may not want to participate in the program.
It’s unlikely that many landlords would say no to the money considering that the average ‘mom and pop’ landlord has waited up to one year to collect rent from their tenants and in most cases, they’ve had to pay two mortgages.
$5.2 Billion In Rent Relief Promised
Since the State of California is sitting on a ‘war chest’ of $27 billion in rent relief, the $5.2 billion that AB 832 promises to pay landlords and tenants seems small in comparison to what the State of California has been paid in rent relief by the Federal Government.
Will $5.2 billion be enough to get the rental market in California back on track? Governor Gavin Newsom certainly hopes so, especially as he faces a potentially tough recall ahead of him and hopes to go into that election with the rental market rebounding.
Opposed By Landlords Groups
The extension of the eviction moratorium in California was naturally opposed by landlords’ groups, many of who complained of the state’s mismanagement of COVID-19 relief funds, and the fact that the average landlord in California is barely hanging on financially.
“We have been under severe financial distress for an excess of 18 months now, and AB 832 will not help the tens of thousands of small mom and pop rental providers who are financially suffering and are struggling to continue providing affordable and safe housing for their residents,”.
- Christine LaMarca – California Rental Housing Association
As always, we’re going to follow this issue and keep you updated on what’s happening with the rental market in California.
Contact MW Real Estate Group
For more information on what’s happening with the rental market in California, or to speak with us about our property management services, contact us today by calling (213) 927-2117 or click here.