Accord reached to extend eviction moratorium to Sept. 30

Gov, Gavin Newsom and legislative leaders agreed Friday to extend California’s eviction moratorium to Sept. 30 and fully cover the cost of low-income renters’ missed payments.

The agreement comes after weeks of uncertainty about the future of the moratorium, which would have ended on June 30 without an extension.

Floor votes in the Legislature are expected Monday. A print version of the state budget with details of the extension was expected later Friday.

“Anybody that has been impacted by COVID and owes rent going back to last April … We will pay 100% of that rent.” — Gavin Newsom

The estimated price tag of the total package is about $5.2 billion, a figure that includes the earlier costs of rent forgiveness for those unable to pay because of COVID-19 job losses. About $1.4 billion currently is in the midst of being distributed.

So far, about 86,000 people have applied for state aid, and some 5,400 households have received it, according to the Business, Consumer Services and Housing Agency.

“Anybody that has been impacted by COVID and owes rent going back to last April … We will pay 100% of that rent. We’ll also pay that rent 100% of it going forward through September,” said  Newsom at a Project Homekey press conference in Santa Clara on Friday morning. Newsom also announced that assistance would also be given towards covering 100% of renter utilities.

Legislative leaders and administration officials had been privy to conversations surrounding these details, but some tenant and landlord advocacy organizations say they had not.

Arguing against a new extension was the California Apartment Association, which represents apartment owners and landlords. A key group that favored the extension is California Rural Legal Assistance, which advocates on behalf of poor and low-income renters.

Current rental debt accrued during the pandemic, according to the National Equity Atlas, totals $3.5 billion.

The current moratorium is scheduled to expire Wednesday, June 30 — the final day of the 2020-21 fiscal year.

Legislative leaders and administration officials have been privy to conversations surrounding these details, but some tenant and landlord advocacy organizations say they have not.

Arguing against a new extension is the California Apartment Association, which represents apartment owners and landlords. A key group favoring the extension is California Rural Legal Assistance, which advocates on behalf of poor and low-income renters.

Current rental debt accrued during the pandemic, according to the National Equity Atlas, totals $3.5 billion.

Last month, the California Employment Development Department reported that state unemployment had dropped to 7.9%, half of the peak 16% unemployment seen during the beginning of the pandemic in April 2020.

The latest negotiations are the third round of COVID-related eviction moratorium discussions.

The previous moratorium was set to expire on Jan. 31, but was extended until the end of June during last-minute negotiations between legislative leaders and the CAA.

Grievances aired on both sides of the aisle ranged from concern over small businesses being able to whether the pandemic to fears that inequities found in the federal CARES Act would be repeated within state legislation. Two bills, SB 89 and SB  91, passed the Legislature and were signed into law by Gov. Newsom.

Ongoing state debt relief programs, like the one passed through SB 91 in January, have been criticized as ineffective because of stringent  requirements for eligibility and confusion over the rollouts. With that program, the state picked up the cost of 80% of rent missed between April 2020 and March 2021, contingent on whether a tenant’s property owner forgave the remaining 20%.

The current funding at the state’s disposal is about $5.2 billion – half coming from the state budget surplus, and the other half from federal dollars.

The latest negotiations coincide with the annual state budget discussions. Counties have discretion on distribution of these funds, but notable rollout issues have emerged.

For instance, Sonoma County distributed less than 10% of its $32 million in rental assistance since the launch of its countywide program in April, as reported by The Press Democrat.

On Tuesday, Los Angeles County set their own countywide eviction ban extension to last until September, following a unanimous vote through the Board of Supervisors. The aforementioned renter and landlord organizations have expressed interest in ensuring a smooth rollout.

Some lawmakers favor extending protections until September or until the end of the year. There also are concerns that if an extension is not granted for overdue renters, landlords will be able to take tenants to small claims court beginning on Aug. 1.
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Editor’s Note: Eric Furth is a Capitol Weekly intern from UC Berkeley.