Gov. Newsom on Wednesday reiterated the state’s plan to cover 100% of rental arrears for qualifying tenants and said the chances of California extending the state’s eviction moratorium again are fading by the day.
“After Sept. 30, the likelihood that we’re going to extend an eviction moratorium is very modest …” Newsom said at a rally in Bell Gardens. “The likelihood of moving beyond that diminishes every day particularly as the economy comes roaring back. …”
Tom Bannon, chief executive officer of the California Apartment Association, said: “Gov. Newsom’s comments are encouraging. It is our position that the moratorium must end on Sept. 30 as scheduled.
“To make sure this happens, it’s imperative that the state and local governments distribute rental assistance dollars as quickly as possible. The days of forcing property owners to provide housing without payment must come to a close.”
California’s rental housing industry has operated under a statewide eviction moratorium since the COVID-19 pandemic shut down the economy in March 2020. Late last month, Newsom signed AB 832, which added three months to the moratorium and prevented it from expiring at the end of June. The bill also promised to reimburse landlords for 100% of the rent owed by qualifying tenants, up from 80% in prior legislation.
Qualifying tenants include those earning less than 80% of the area median income, although the state is making some exceptions for higher-earning renters who can show a loss of wages due to COVID.
“California is now offering the largest renter assistance package of any state in America with a total of $5.2 billion to help low-income renters and landlords, covering 100 percent of back-rent and all prospective rent for several months into the future,” Newsom said in this press release. “The plan includes an additional $2 billion for overdue water and utility bills.”