05 Feb Rent Relief For Landlords Is On The Way Thanks To $2.6 Billion In Federal Funds From SB 91
Landlords in Los Angles, and across California, breathed a collective ‘sigh of relief’ recently after Governor Gavin Newsom signed SB 91, a bill that will use $2.6 billion in Federal funds to pay landlords up to 80% of the back rent that they are owed from tenants during the Covid-19 pandemic.
Thankfully, SB 91 had overwhelming support in both houses of California’s Legislature, this means that the money will become available to landlords beginning in March 2021.
About SB 91
As eviction moratoriums and various other State and Federal programs helped have helped renters over the last 12 months, it’s time for landlords across California to get the help that they need because they have been hit hard during the Covid-19 pandemic.
With the help of SB 91, landlords will have money to cover up to 80% of their tenant’s back rent which they may have accumulated since the beginning of the Covid-19 pandemic in March of last year.
The only ‘catch’ of this bill is that if a landlord accepts that money, they must forgive the remaining balance of their tenant’s back rent.
Besides SB 91, there’s also talk of additional Federal dollars being available for landlords coming in June.
Landlords Are Finally Getting The Help That They Need
There’s no denying that landlords in California have been dealt a heavy blow since the start of the Coronavirus pandemic because many tenants have benefitted from eviction moratoriums while landlords have suffered.
Now that the elections are over, and the Covid-19 vaccine is being distributed across the United States, the good news is that landlords in California are finally getting the attention and help that they need.
Stopping A Foreclosure Wave
With no money coming in over the last 12 months, many landlords have been faced with using credit cards and savings to cover their mortgage payments.
Getting money to landlords is now a priority that most State and Federal politicians recognize must happen fast or those landlords that have been struggling to stay afloat financially over the last 12 months will lose their properties and end up in foreclosure.
SB 91 is a step in the right direction and a sign of hope that money will start flowing into landlords’ pockets and those landlords that have been struggling during the pandemic will finally begin to get caught up financially in 2021.
Contact MW Real Estate Group
At MW Real Estate Group, we specialize in managing multifamily properties in Los Angeles.
If you have a multifamily property that needs property management, or you would like to learn more about our services, contact us today by calling (213) 924-2117 or click here to connect with us online.