THE TENANT RELIEF ACT OF 2020 –TENANT RIGHTS AND LANDLORD RESPONSIBILITIES
California’s 2020 legislative session ended with the enactment of Assembly Bill (AB) 3088 entitled “Tenant, Homeowner, and Small Landlord Relief and Stabilization Act of 2020” (Tenant Relief Act). The Tenant Relief Act provides residential tenants temporary protection from eviction due to non-payment for COVID-19 related financial hardships.
The Tenant Relief Act was passed just one day before the eviction moratorium was set to expire. It is intended to stabilize the housing crisis and provide a “mutually beneficial” framework to landlords and tenants with the goal of avoiding “as many evictions and foreclosures as possible.”
The Tenant Relief Act prohibits landlords from evicting residential tenants for non-payment of rent due to COVID-19 hardships through January 31, 2021, but distinguishes between rent due before and after the passage of the Tenant Relief Act.
The “Protected Time Period”: Rents Accrued Between March 1, 2020 and August 31, 2020
The Tenant Relief Act prohibits landlords from evicting residential tenants for non-payment of any rent owed between the months of March 1, 2020 and August 31, 2020 if the tenant provides a declaration under the penalty of perjury stating that their finances have been detrimentally affected by the COVID-19 pandemic.
The “Transition Time Period”: Rents Due Between September 1, 2020 and January 31, 2021
Additionally, residential tenants cannot be evicted for their inability to pay full rent between September 1, 2020 and January 31, 2021, however, the tenant must provide their landlord with a declaration of COVID-19 related financial hardship within 15 days of receiving a nonpayment of rent eviction notice, and must pay a minimum of 25% of rent for the months of September 1st through January 31, 2021 no later than January 31st, 2021. The 25% payment can be made as installments or in one lump sum so long as the cumulative 25% payment is made by January 31, 2021.
Unpaid Rent Converted to Consumer Debt
While tenants are protected from eviction due to COVID-19 related non-payment, the Tenant Relief Act does not forgive the rental debt accrued between March 1, 2020 and January 31, 2021. Rather, the balance is turned into consumer debt which landlords can pursue in small claims court, regardless of the amount, starting March 1, 2021 through February 1, 2025.
Landlords’ Responsibilities under The Tenant Relief Act
Under the Tenant Relief Act, landlords are required to give a 15-day notice before seeking to evict for overdue rent incurred between March 1, 2020 and January 31, 2021. (Saturdays, Sundays, and judicial holidays are excluded.) The Tenant Relief Act also established more severe penalties against landlords that engage in “self-help” evictions methods (e.g., shutting off utilities, changing the locks) and extended the “just cause” evictions protections previously outlined in AB 1482 to all tenants through January 1, 2021.
The Tenant Relief Act offers only temporary and modest protections for landlords by extending some of the provisions of the existing “Homeowner Bill of Rights” to “small landlords” through January 2023. Critically, AB 3088 does not include a moratorium on foreclosures or require banks to provide forbearance.
Short Term Solution for Some to a Long-Term Problem
Legislators acknowledged that AB 3088 is a temporary solution to an ongoing problem. Commercial tenants and landlords, specifically exempted from the Act, remain at the mercy of local and county ordinances.
As the pandemic and its impacts continue to unfold, the protections and responsibilities are also likely to evolve. Many of the Act’s protections will sunset about the time many medical experts foresee a further spike in COVID-19 cases. Some hope that comprehensive relief will come from the federal level.
The information provided above does not, and is not intended to, constitute legal advice. All information, content, and materials are for general informational purposes only and do not create an attorney-client relationship. The experienced and knowledgeable attorneys at Blake Law Firm are available help you navigate your landlord tenant and other real property issues. Call us today at (858) 232-1290.