We’ve studied the new law brokered in Sacramento and give you the broad strokes.

Days before California's eviction moratorium was set to expire, lawmakers and the Governor have extended the state's partial eviction moratorium through June. Landlords can tap into a pot of $2.6 billion in federal funds designated to pay up to 80% of rent owed by qualifying tenants who have been financially strained by the pandemic. We go beyond the headlines and attempt to break it down in an easily digestible fashion.
Although landlord and tenant groups are not completely satisfied with new law, it is imperative that rental property owners secure access to an infusion of cash. Let’s hope the government works speedily to get the dollars to landlords who chose to participate in the program. 

We have several reservations about the bill, primarily that the legislation will not cover a large portion of renters whose income exceeds the eligibility requirements. Moreover, our community should not automatically assume that renters will cooperate with program requirements.

Already skeptical about the prospect of recovering rent debt, the new bill only dampers our outlook with new provisions. On balance, however, it should be welcome news for landlords who are operating their rental business with little cash flow. 

After dissecting the law, we’ve put together a handy guide here. The new rules will also be the subject of our February 24th webinar and invite you to register for the discussion if you haven’t already done so. 

Thanks so much. We look forward to powering through the many challenges our clients face.