Q&A with the Apartment Association – July 2021 Update

This video update is about Bill AB832 and terminations. Bill AB832 is an extension of previous legislation SB91 which was created to achieve the same goal but was set to expire June 30th, 2021. Terminations are currently not allowed.

The new bill does the following: 

  1. Extends the rental relief program till September 30th, 2021
  2. New Notice to be delivered by July 31st.

New Bill

The new bill extends the rental relief program till September 30th, 2021. Previously, under SB91, 80% of unpaid rent was to be paid by the rental relief program under the condition that the training 20% was forgiven.  This is great as it lets landlords recoup their past due rent allowing them to make mortgage payments and properly manage their assets. 

Should you need any information about the rental relief program, go to the housing is key website as that is the HUB for all things to do with this program. In fact, on the website, you can find out who will handle your case, whether it be the state of CA, or your local county or city. One common response from property owners is that this application involves a lot of waiting. By reaching out to the State/ City about the status of the application and working with them to get all your documents in, you will collect your past due rent.

New Notice

There is a new notice that landlords must give out to tenants starting July 31st, which is an informal notice which indicates the obligation to pay unpaid rent by September 30th. This is the first step towards collecting rent or evicting a resident. After delivering the notice, the landlord may give a 15-court day notice for nonpayment of rent. The resident must pay within 15 court days or must write a letter of hardship which indicates the reason why they are experiencing hardships due to COVID-19. On the 16th day, if the tenant has still not responded, the landlord can start filing for eviction. When filing for an eviction, the court wants to see that as a landlord you did your part in applying for a rent relief program. You don’t have to be successful in applying, but you do need proof that you made an attempt. For example, the tenant could have dropped the ball, or was not eligible, etc. 

After Sep. 31st, the eviction process will revert to a 3-day notice with additional language informing the tenant and landlord about rent relief which can possibly delay the 3-day process.

Termination

30-day and 60-day notices are prohibited unless there are underlying reasons because of the just cause protection granted by AB832.

You cannot give these termination notices unless there is a substantial renovation or owner occupancy. Substantial renovation requires the unit to be renovated to get up to health and safety codes provided that work will last 30 or more days. You are also allowed to give a notice if you intend to live in the unit. 

Final Message

If you are a landlord, from 3/1/2020-9/31/2021 you can collect 100% of unpaid rent. Even if unable to receive funds, this will benefit you in the eviction process in the near or distant future should you pursue now or after September 31st. Go to the housing is key website to get started.

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