Under the legislation, struggling renters are protected from evictions until January 31, 2021, but they are still responsible for past due rents to landlords. Landlords may begin to collect unpaid rents on March 1, 2021. Small claims court jurisdiction will be temporarily expanded to allow landlords to recover unpaid rents. Landlords who do not follow the court evictions process will face increased penalties under the law.
The legislation also provides relief for small landlords by extending the Homeowners’ Bill of Rights’ anti-foreclosure protections. It also provides new accountability and transparency provisions to protect small landlord borrowers who request CARES-compliant forbearance and provides the borrower who is harmed by a material violation with a cause of action.
A “bridge to a permanent solution” to protecting renters and small landlords
In a statement, Gov. Newsom said, “This new law protects tenants from eviction for non-payment of rent and helps keep homeowners out of foreclosure as a result of economic hardship caused by this terrible pandemic. California is stepping up to protect those most at-risk because of COVID-related nonpayment, but it’s just a bridge to a more permanent solution once the federal government finally recognizes its role in stabilizing the housing market. We need a real, federal commitment of significant new funding to assist struggling tenants and homeowners in California and across the nation.”
