SB 91 – Newest Law Introduced to Extend AB 3088

California legislator leaders introduced a measure aimed at settling unpaid rent debt for qualifying tenants and landlords owed since April 2020 up until March 1st, 2021.

The key takeaway from SB 91 is that the landlord would receive up to 80% of accumulated back rent in exchange for forgiving the other 20% and not pursue eviction.

Other key takeaways

  • SB 91 is intended to extend AB 3088
  • Landlords can either accept or reject to accept the 80% deal.
  • The landlord would receive 25% of back due rent for 3 month and can sue a tenant in small claims court for the rest.
  • SB 91 would extend the 25% due by tenants affected by covid from Jan 31st to June 30 2021.
  • Qualified tenants and landlords can start applying as of March 2021
  • SB 91 gives the tenant additional time to pay back the 25% owed under AB 2088 but this does not mean it is forgiven. Tenants would still owe the 25% of rent owed.

Who qualifies for SB 91?

The unpaid rent must be owed by tenants whose income is below 80% of the rental property’s average income for 2020 or as of the date they are applying for the funds. State legislators are considering offering additional funds for tenants and landlords who either don’t qualify for SB 91 rental assistance or for those who do and would need additional assistance.

SB 91 also offers local governments that agree to adopt the new guidelines additional funding as incentives. This will allow landlords and tenants to standardized compliance and would cause less confusion on the matter. If local governments choose not set SB 91 as the main guideline to distributing the federal funds to tenants and landlords, they wouldn’t receive additional money from the state.

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