California Eviction Moratorium Extended until the End of September 2021

On June 25th, 2021 the Governor of California Gavin Newsom and other legislative leaders came to an agreement to extend the current California eviction moratorium until the end of September 2021. The agreement comes a week before SB91 was set to expire on June 30th, 2021. 

As of Wednesday, June 29th, AB 832 has been signed into law by Governor Gavin Newsom.

Along with the extension, they have also come to an agreement to expand the payment of owed back rent from 80% to up to 100% for many low income families who were financially affected by COVID-19.

Since the start of the rental relief payment program in March, designed to help tenants and landlords recover owed rent during the COVID-19 state of emergency, millions of dollars of the assistance fund has gone unclaimed. Leaders believe giving tenants and landlords more time will encourage them to seek these funds for relief.

Other legislative leaders think the California eviction moratorium was extended in an attempt to avoid mass evictions and the overwhelming of the already saturated court system.

Newsom and state leaders believe that by changing the original plan of landlords forgiving 20% of the rent owed and accepting only 80% to being able to receive up to 100% of owed rent during the COVID-19 emergency, it will encourage more landlords to work with tenants to go through the application process.

Important AB 832 Takeaways

  • The ban on a landlord’s prohibition from interrupting utility services will be extended through October 1, 2021.
  • Existing law prohibiting evictions for a cause of action for other than non-payment of rent if the landlord is retaliating for the tenant’s non-payment of rent will continue to October 1, 2021.
  • Prohibition on foreclosure actions for Small Landlords will be extended to 12/01/2021
  • Ban on Small Claims for unpaid debt is extended to November 1, 2021 with the no cap extended to October 1, 2025
  • Existing law requiring landlord to investigate whether governmental assistance is available which sunsets on July 1, 2027 has been extended. With AB 832, a landlord must continue to provide the tenant with the rental assistance application and must also apply. The rental assistance, if available, has been upped to 100% of the unpaid rent.
  • Ban on attorney fees beyond certain limits continues to October 1, 2025
  • Tenants Protection Act currently in existence will be extended to 10/01/2025 requiring the same Information Disclosure Notices
  • Civil Code Section 1942.5 extends the ban on evictions for retaliation against a tenant who attempts to use the Tenants Protection act until October 1, 2021 and provides for civil penalties and damages against landlords who violate this provision. The tenant can collect actual damages, punitive damages up to $2,000.00 for each incident, attorney fees to the prevailing party
  • Civil Code Section 1179.02 will be amended to sunset on 09/30/2021 and continues the definitions of COVID-19 related financial distress that currently exist. The Blank Financial Distress Declaration that must be served with every 15 Day Notice to Pay Rent or Quit remains the same.
  • Civil Code Section 1179.03 requirement of a 15-Day Notice is extended to September 30, 202.
  • After October 1, 2021 under AB 832, a tenant can be found guilty of unlawful detainer as follows:
    • if the tenant was guilty before March 1, 2020
    • The tenant failed to comply with the Covid-19 reporting requirements
    • At fault evictions as defined in Civil Code Section 1946.2
    • A no-fault eviction can be started on the grounds (1) landlord’s intent to demolish or substantially remodel the rental unit (2) owners contract to sell with a buyer who intends to occupy the rental unit no relocation payment required.
    • Non-payment of rent service of a 3-Day Notice to Pay Rent or Quit begins again. New law requires the landlord to verify under the penalty of perjury that the landlord has applied for rental assist relief funding waiting at least 20 days after applying, verify under penalty of perjury that the tenant was informed of his or her rights for rental assistance funding and if the landlord has not received any information from the government or tenant the landlord can begin the unlawful detainer action.
  • Qualifying tenant is a tenant whose income is less than 80% of the area’s median income. The state is to pay 100% of all unpaid covid-rent up from 80% for a qualifying tenant and landlord.
  • The new bill prohibits cities and counties from adopting eviction moratoria from now through March 22, 2022.

We will continue to update you with more information about the California Eviction Moratorium Extension as it becomes available. If you have any additional questions, please contact our office at 1-800-686-8686 or intake@fastevict.com