/https://specials-images.forbesimg.com/imageserve/5f4ec3b095fa6c5f1712a595/0x0.jpg?cropX1=0&cropX2=6315&cropY1=166&cropY2=3719&w=1200&resize=1200,675&ssl=1 "California Extends Eviction Moratorium Amid Rent Crisis")
TOPLINE
California Gov. Gavin Newsom signed a bill banning evictions until February 2021, extending temporary relief for millions of Californians amid the coronavirus pandemic, as many Americans struggle to pay rent since the federal eviction moratorium and enhanced unemployment benefits ended in July.
California Governor Gavin Newsom speaks to the press after the sixth Democratic primary debate of … [+]
(Photo by AGUSTIN PAULLIER/AFP via Getty Images)
KEY FACTS
Under the new law, tenants who pay at least 25% of their rent from September 1 through January 31 will be protected from eviction—and won’t be liable for rent that was due from March through August until March 2021.
The bill also protects certain rental property owners from foreclosure as long as they own no more than four dwellings and meet certain criteria, including having a tenant who can’t pay their rent “due to a reduction in income resulting from the novel coronavirus,” according to NPR.
To qualify, renters have to submit a form each month declaring they face a Covid-19 related hardship and can’t pay their rent.
While the bill passed with a supermajority in both houses, even its supporters said it was a temporary fix— the bill’s author, Democratic Assemblyman David Chiu called it “an imperfect solution to a colossal problem,” according to the Wall Street Journal.
So far 16 states and the District of Columbia have passed eviction bans, according to legal website Nolo, though some states, like Vermont, are currently allowing legal action against tenants while still barring evictions until the state’s emergency declaration is over.
About 27 million Americans still claim unemployment benefits each week, and more than 1 million new claims have been filed for 22 out of the past 23 weeks.
Key Background
About one-third of the country’s renters, roughly 12 million people, were protected by the eviction moratorium that was part of the CARES Act, which expired on July 28. Eviction filings weren’t supposed to begin until 30 days after the moratorium expired, but some landlords began filing eviction cases as early as June. Wrongful evictions have been reported across the country, with consumer advocacy groups finding more than 100 eviction filings in apparent violation of the CARES act in Arizona, Texas, Florida and Massachusetts, and legal aid lawyers in 38 states reporting multiple instances of attempted illegal evictions, according to the New York Times. It’s been over a month since the CARES Act expired and Congress has yet to reach a deal on a new coronavirus relief package.
Tangent
Despite the California State Senate being allowed to vote remotely, Assemblymember Buffy Wicks, who gave birth in late July, was denied a proxy vote because “maternity leave is not eligible for proxy voting.” Wicks brought her 1-month-old baby to the Assembly floor during the legislative session.
Further Reading
California Enacts Eviction Moratorium (Wall Street Journal)
Eviction Looms for Millions of Americans Who Can’t Afford Rent (Wall Street Journal)
Landlords Jump the Gun as Eviction Moratorium Wanes (New York Times)
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