Rent is Due! An Explainer on SB91, and evictions during COVID 19
If you’re a California renter, you’re probably wondering what the F*$% is going on with rent, especially if your income has changed due to COVID in the past year. We hear you there. Like most things in California government, the laws passed to address rent debt, evictions and tenant protections are extremely complicated and convoluted, so we’re going to try to break it down for you.
On Monday, Gavin Newsom and democratic leaders struck an 11th-hour deal, SB-91, that will protect most tenants from eviction through June 30, 2021, and sets up a federal rental assistance program. Facing a crucial deadline on Sunday, lawmakers passed SB-91 today.
While we are relieved that SB91 addresses our immediate concerns of keeping people housed and safe in the near term, this bill is wholly inadequate and leaves too many working-class renters at risk. During this time of uncertainty and confusion, Californians deserve a plan that will ensure their livelihood and safety as we ride out the worst of the pandemic, as well as the long-term issues Californians renters frequently encounter. SB-91 unfortunately misses that mark.
Background:
In March of 2020, the economy came to a screeching halt when the country had to shut down to prevent the spread of COVID-19. In the midst of an unprecedented recession, unemployment skyrocketed, leaving millions of renters without income and therefore, without the means to pay their rent. These renters were facing the threat of eviction and homelessness, which has shown to lead to a rise in evictions and deaths from COVID-19.
In order to prevent going over an eviction cliff, Governor Newsom and Democratic leaders put forward AB3088, which was a patchwork of provisions that would keep people housed until January 31, 2021.
SB 91
Now we’re at the end of January. With the same threat looming, Newsom released a new bill, SB 91, which extends renter protections to June 30, 2021, and sets up a large-scale rental assistance program to address the massive rent debt in California . Since this is a budget bill, it passed with a majority vote in both houses.
So what’s in SB91? And what does it mean? Here are the basics.
Landlords can’t evict a tenant due to non-payment of rent in the months between March 2020 and June 2021 if the tenant’s income or expenses were impacted by COVID 19. You still owe this rent, but it can’t be used as a reason for eviction.
On July 1, 2021, evictions due to non-payment of rent will be allowed to resume. If you have rental debt due to COVID, you would need to pay 25% of the back rent accrued between September 1, 2020 and June 30, 2021, along with your current rent, to avoid getting evicted for past amounts due. This is conditioned that the tenant has submitted a statement of impact showing the loss of income or increase of expenses related to COVID-19.
The remaining 75% of back rent is converted to consumer debt, and can be collected in small claims court.
If your landlord pursues a claim in court, they must provide documentation that they made a good-faith effort to provide the tenant with information and resources for getting rental assistance. Otherwise, they may not be able to get back the full amount owed.
What does this all mean?
So let’s say that you rent an apartment for $1,000/month, and you lost your job because of COVID in 2020, so you couldn’t pay any rent since September. Here is how SB 91 would work:
*You have a verified loss of income due to COVID-19 and have submitted a statement of impact.
Rental Subsidy Program
In addition to extension of the eviction moratorium, SB 91 allocates $2.9 Billion dollars of federal funds to establish a rental subsidy program and address the overall debt caused by unpaid rent.
Here is how it works:
Landlords can apply for a subsidy of 80% of the back rent due only if they agree to forgive the remaining 20% and not pursue an eviction.
If they opt to not forgive the remaining rent, tenants can apply for a 25% subsidy to cover their rental debt. Part of the federal stimulus will go to local jurisdictions, so more tenant programs may be available.
$1.5 Billion of this fund will go to counties for rental assistance programs. Rental assistance will be prioritized to people who earn 50% of the Area Median Income (AMI). In order to qualify at all. renters need to have an AMI of 80% or less.
What is wrong with this bill, and what we’ll need to improve
This bill is a confusing hodge-podge of band-aid solutions, and doesn’t go nearly as far as it should (evictions are still happening!!). Gavin Newsom has the ability to call for a statewide moratorium for the duration of the pandemic, and we’re disappointed that he missed this opportunity to provide real relief to working-class Californians.
The subsidy program gives far too much discretion to landlords, and creates a dynamic that leaves tenants susceptible to abuse. Tenants should have direct access to rental relief.
California was in a rental affordability crisis far before the pandemic hit. Most tenants were barely able to cover the rent before and lacked a windfall of funds in case of an emergency. Having a payment of 25% available now is even more difficult, and leaves too many people vulnerable to eviction.
It lacks an enforceability mechanism, leaving tenants responsible for asserting their rights if illegal eviction attemps are made.
Given the slow rollout of vaccine distribution, and the difficulty with unemployment benefits, we worry that the state will have the same logistical issues in providing much-needed relief to tenants.
We also take issue in the way this deal was met: behind closed doors without the input from key stakeholders, like tenant advocates. We think transparency is vital to the democratic process. This deal completely shut out the voices of Californians that are most impacted.
What happens now?
We avoided disaster for now, but we’ll need our leaders to push hard for more tenant reforms, which includes expansion on just-cause protections, Ellis Act reform, and repeal of Costa Hawkins. Our SF reps, David Chiu, Scott Weiner and Phil Ting, have been strong on tenant protections, and we encourage them to continue this fight for more long-term solutions.
If you are directly effected by COVID-19 and are worried about your rent, reach out to tenant organizations like Tenants Together, SF Bar Association's Legal Advice and Referral Clinic, or the SF Tenants Union to learn what your options are and how you can protect your rights as a tenant.
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