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LB-Area State Senator Lena Gonzalez Teams With CA Apartment Ass'n To Introduce Bill That Would Have State Taxpayers Pay 80% Of COVID-19-Impacted Tenants' Rent To Landlords Who Voluntarily Agree Not To Raise Rents Thru 2020


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(May 2, 2020, 8:55 a.m.) -- State Senator Lena Gonzalez (D, LB-southeast LA County) has used Sacramento's "gut and amend" procedure (replacing the text of one bill with entirely new text) to advance legislation supported by the CA Apartment Association that would create a "COVID-19 Emergency Rental Assistance Program" tapping state taxpayer funds to pay landlords 80% of the rent due from COVID-19 impacted tenants (for up to 7 months) to landlords who voluntarily agree not to raise rents between the time they begin taking the money through Dec. 31, 2020 and requires the landlord to accept the 80% sum as payment in full of rent due.

As described in the Legislative Counsel's accompanying digest, SB 1410 (text here) would create a "COVID-19 Emergency Rental Assistance Program, to be administered by the Director of Housing and Community Development.

[Legislative Counsel text] The bill would deem a household eligible for rental assistance payments under the program if the household demonstrates an inability to pay all or any part of the household’s rent due between April 1, 2020, and October 31, 2020, due to COVID-19 or a response to COVID-19, as specified, and the owner of the dwelling unit consents to participate in the program.

The bill would require the Department of Housing and Community Development to develop a process to confirm whether a household demonstrates an inability to pay rent and develop a process to obtain the owner’s consent to participate in the program. The bill would require each payment to an owner under the program to equal at least 80% of the amount of rent owed by the household to the owner. The bill would prohibit the rental assistance provided by the program from covering more than 7 months of a household’s missed or insufficient rent payments.

This bill would prohibit an owner who participates in the program from increasing the gross rental rate for the dwelling unit between the date the owner consents to participate in the program and December 31, 2020, and would prohibit an owner from charging or attempting to collect a late fee for any rent payment due between April 1, 2020, and October 31, 2020. The bill would require an owner who participates in the program to accept a payment provided under the program as full payment of the missed or insufficient rent payments, as specified.

This bill would create the COVID-19 Emergency Rental Assistance Fund in the State Treasury, and upon appropriation by the Legislature, make the moneys in the fund available to the department for purposes of the program. The bill would provide that the program be implemented only to the extent that funding is made available through the Budget Act. The bill would specify that it is the intent of the legislature to prioritize the use of available federal funds before using General Fund moneys for the program. This bill would declare that it is to take effect immediately as an urgency statute.








[SB 1410 was originally a bill introduced on Feb. 21, 2020 by Sen. Gonzalez dealing with appeals of local development decisions on housing; it hadn't yet received any committee hearings or voted actions.]

Sponsor

Sponsor

In a release, the CA Apartment Association stated in pertinent part::

...Gonzalez said her legislation aims to provide economic security -- both for renters and housing providers -- during this unprecedented time.

"COVID-19 has immensely affected our economy, put pressure on both tenants and property owners to fulfill their payment obligations, and has exacerbated the need to keep people housed during an existing housing crisis," Gonzalez said in this news release. "In order to protect our broader housing economy, SB 1410, an urgency measure, will not only provide much-needed immediate assistance to both tenants and property owners but also protect our most vulnerable communities."

Debra Carlton, CAA’s executive vice president for state public affairs, added: "The COVID-19 pandemic has brought frightening and uncertain times, leaving many Californians with health challenges and economic difficulties.

"Sen. Gonzalez has offered a solution that will help housing providers continue to pay their bills, and their employees, while also making it a little easier for struggling renters to get back on their feet financially when the pandemic ends."

Since the onset of the COVID-19 pandemic, CAA has urged landlords to act with patience and compassion toward renters unable to cover their rent. The association asks that all rental housing providers abide by CAA’s Safe at Home Guidelines. Also, visit CAA’s COVID-19 resource page for the latest information on navigating the pandemic.

Sponsor

Sponsor

On her state Senate Facebook page, Senator Gonzalez wrote (May 1):"Rent burden is one of the biggest challenges our community is facing during the COVID-19 pandemic. As plans to slowly modify the stay-at-home order progress, many Californians are also worried about lifting the statewide eviction moratorium and what it could mean for the many families at risk of eviction and higher debt. SB 1410 will provide renters and rental property owners who have been directly impacted by the Covid-19 pandemic with financial assistance to prevent evictions and keep struggling Californians housed. As the Legislature reconvenes to continue our important business, I look forward to advocating for California’s tenants and property owners."

Sponsor


In the 2019 special election that elevated former Long Beach Councilwoman Gonzalez to the state Senate, the LB-based "Apartment Association, California Southern Cities" contributed $2,500 (Feb. 7, 2019) to her campaign .

Amnesia File: Among LB Councilwoman Gonzalez's final Council actions (June 11, 2019) was to enact a LB "Tenant Relocation Assistance Ordinance" decried by landlords at the time as de facto rent control including "just cause" provisions. The LB ordinance (carried 6-3 with Price, Supernaw, and Mungo dissenting) required owners of four plexes and above to pay tenants of over one year, who haven't engaged in actions deemed evictable, sums of from $2,700 to $4,500 if they choose to leave/relocate rather than pay a rent increase of over 10%.


Support really independent news in Long Beach. No one in LBREPORT.com's ownership, reporting or editorial decision-making has ties to development interests, advocacy groups or other special interests; or is seeking or receiving benefits of City development-related decisions; or holds a City Hall appointive position; or has contributed sums to political campaigns for Long Beach incumbents or challengers. LBREPORT.com isn't part of an out of town corporate cluster and no one its ownership, editorial or publishing decisionmaking has been part of the governing board of any City government body or other entity on whose policies we report. LBREPORT.com is reader and advertiser supported. You can help keep really independent news in LB similar to the way people support NPR and PBS stations. We're not non-profit so it's not tax deductible but $49.95 (less than an annual dollar a week) helps keep us online.


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