Coronavirus Spurs New Temporary Mortgage, Rent Laws in California
By: Rousselle Douge
Housing is a basic need that even in the best economic times has been out of reach for many Californians. The spread of COVID-19 virus has caused Governor Gavin Newsom to order social distancing and lockdowns to prevent its spread. This has resulted in the closure of many businesses and numerous people unemployed. Without work, incomes dry up resulting in the ability to pay for housing at risk. To prevent people from becoming homeless, due to unemployment, new mortgage and rent laws were enacted in California. However, many people are left to wonder if the new laws can apply to their situation and if they cannot pay for housing, will they be evicted?
On March 4, 2020 Gov. Newsom proclaimed a State of Emergency in California as result of the threat of COVID-19. Less than two weeks later Newsome issued Executive Order N-28-20, meant to halt enforcement of evictions for those affected by COVID-19 and if the tents reduction or loss of income is due to COVID-19 or government response related to the virus. The order will be effect until May 31, 2020 unless extended. It requests that financial institutions holding home or commercial mortgages including banks and other entities to implement an immediate moratorium on foreclosures for those with income affected by the coronavirus. On March 27, 2020, Newsom issued executive order N-37-20. It has some of the same language as the previous order but gives sixty days for a tent to respond to an eviction. To qualify the tenant had to have previously paid their rent, notified the landlord before or up to no more than 7 days after rent is due that some or all of the rent will be delayed due to COVID-19 related issues. Also, tenant needs to retain verifiable documentation, pay stubs, which may be provided to the landlord no later than the time of payment of back rent. Notably, both orders state that it does not relieve a tenant of the obligation to pay rent.
The executive orders appear to protect people from eviction, due to COVID-19, but legal experts and housing rights advocates believe they lack the legal teeth needed to take the bite out of eviction.
As reported by the public media organization, KQED, “Although it’s being billed as a moratorium on evictions, the order only delays a tenant’s legal window for responding in court-allowing them 60 days to respond, rather than five days – when a landlord files an eviction. It does not stop new evictions from being filed. Even if a tenant does provide the required documentation, they still have to go to court to prove they meet the conditions, said Silvana Naguib, a supervising staff attorney with the Los Angeles-based pro bono law firm, Public Counsel. The governor’s order says sheriff’s departments shouldn’t evict anyone protected from the order, but again, Naguib says it places the burden on the sheriff to determine who meets the criteria for protection and who doesn’t.”
The order at best only delays the inevitable eviction for a few months if rent is not payed. To make matters more confusing to people, different cities have their own eviction ordinances. The city of Rancho Cucamonga has an eviction moratorium which applies only to evictions based on the non-payment of rent from hardship related to the COVID-19 pandemic. A tenant must notify the landlord within 30 days after the rent is due and provide documentation. The moratorium will last through May 31 for residential tents. In L.A. county the Board of Supervisors have taken a more protective stance. Their moratorium bands evictions due to COVID-19 impacts, renters have a year after the moratorium ends to pay any back rent and cannot be charged late fees or interest during the moratorium. Tenants may provide self-certification of their inability to pay rent and landlords must accept this as sufficient notice, and landlords may not harass or intimidate tenants who choose to exercise their protections under the moratorium. The Disaster Help Center also provides expanded foreclosure protection assistance for landlords with fifteen or fewer units. Gov. Newsom’s website contains more specific information regarding mortgage relief.
On May 12, the Los Angeles County Board of Supervisors issued an executive order that extends the moratorium on evictions through June 30. As the May 31 eviction moratorium approaches, municipalities may or may not decide to extend the deadline.
While the new state laws for housing included protections for both homeowners and renters, the forefront of conflict has been mostly between renters and their landlords. Some renters have appealed to online messaging boards, like Quora, asking for advice “on how to handle situations like landlords asking for their stimulus check”.
On April 21, in Boyle Heights frustrated people protested the housing situation. Cars filled the road with people holding signs through windows demanding rent forgiveness, seeking relief that goes beyond the shaky antieviction laws that were enacted. Their protest highlights an important issue that may become more prevalent after rent protections end; the ability to pay snowballing back rent.
David Levy from the Fair Housing Council of Orange County assessed that, “there will be huge numbers of people who won’t be able to get current on rent.” Further adding that having an eviction on one’s credit could make it difficult to obtain housing in the future so concessions might have to be made.
However, the situation is not all bleak. The California Rules of Court adopted emergency rules to deal with the COVID-19 pandemic. Emergency rule one deals with unlawful detainers (evictions). The court will not issue a summons for an unlawful detainer unless the court finds it necessary to protect public health and safety. The rules are in effect until 90 days after the governor declares the state of emergency, due to COVID-19, is lifted or the amended or repealed by the Judicial Council. More information can be found on the California Courts website.
Consequently, by having the courts themselves not open to hearing eviction cases for a period unless there are special circumstances, people are granted more housing protections. According to Shelbie Houston, from Modern Real Estate Shop which deals which a variety of real estate in the Inland Empire, from home selling to property management, because of new laws they are not evicting anyone but encouraging renters to pay what they can.
When ask how they are advising renters during the pandemic Huston stated, “Rent is still due and it’s not waived or reduced but if you are having issues then of course we will work with all tenants to pay as much as they can as frequently as they can so they don’t fall behind. If your income has been reduced or you are laid off in order to qualify for a payment arrangement-you must file unemployment insurance.”
It is important for a person having trouble paying their rent to reach out and investigate their options.
COVID-19 is straining the global community. Scientist and regulators are racing to find treatments and contain the spread of the virus causing economies to be in crisis. California, a populous state with already suffocatingly high housing cost is strained, leaving some people to wonder if homelessness is in their near future.