13 May Rental Housing Providers Could be Paid 100% Of Rent Owed Thanks To Gov. Newsom’s New Plan
Rental housing providers in California could be back on track financially once the Federal Eviction Moratorium eventually ends, thanks to Governor Newsom.
The California Governor recently announced his intention to pay rental housing providers 100% of the rent that they are owed, including money to catch up their past due to water and electric bills, from the last 12 months.
This plan is exciting news for owners across the State of California because it means that rental housing providers won’t just have to accept 80% of their tenant’s back rent, which they would have had to do under a previous plan, they can now expect to be paid 100% of what’s owed.
When Will The Money Be Distributed?
Funding from the Governor’s plan is contingent on the State of California receiving an additional $2.6 billion in aid from the Federal Government.
Once that money has been paid, it will be used for rental assistance across the California while the unpaid utility or water bills that may owners have right now will be paid from the state’s general fund.
If everything comes together as Governor Newsom hopes, rental housing providers across California will likely be caught up financially by this summer.
When you combine this with the demand for labor across the State of California, along with continued vaccinations, there’s renewed hope that the state is finally getting back to normal following Coronavirus.
Widespread Support
After releasing his new plan to pay rental housing providers in California 100% of what’s owed them.
The Governor’s new plan received widespread support statewide, including support from the California Apartment Association (CAA), who said “CAA looks forward to working with the governor and legislature to make the assistance in today’s announcement a reality and distribute the additional funds as quickly as possible”.
Rental property owners in California have been hardest hit during the COVID-19 pandemic, especially ‘mom and pop’ owners who have been faced with the struggle of covering the mortgages and bills for their properties while they’ve had tenants living in their properties rent-free.
Contact MW Real Estate Group
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