SACRAMENTO–Another bill is back in the California Assembly that seeks to put an eviction moratorium in place.
As CUToday.info reported earlier, in June AB 2501 was defeated in a 28-25 vote. That bill had been sponsored by Democratic Assemblywoman Monique Limón and would have allowed borrowers to postpone auto and payday loans. That legislation has been strongly opposed by credit unions, banks and other groups.
Now, Assemblyman David Chiu (D-San Francisco) is backing a bill to prohibit landlords from evicting renters who miss payments until the end of the coronavirus state of emergency, plus three months, or between March 4, 2020 and April 2021, whichever deadline comes first.
The measure would allow renters another year to make up the payments before a landlord could pursue legal action, though tenants would still be protected against eviction as long as they’re currently paying rent, according to the Sacramento Bee. The Bee reported Chiu used a process called “gut and amend” for Assembly Bill 1436, which had already moved through the House last year and now awaits the Senate’s approval. AB 1436 is expected to be heard in the Senate Judiciary Committee on Aug. 12, according to the Bee, which noted the two Democrats announced they would include the mortgage forbearance provision in the eviction bill.
‘Critical for Stabilizing Economy’
“Preventing a wave of evictions and foreclosures is critical to stabilizing our economy and keeping our communities healthy,” Chiu said in a statement. “These new amendments take a more holistic approach to our COVID-related housing emergency by balancing the needs of tenants and property owners.”
According to the Sacramento Bee, under the revised legislation, Californians could request one-year forbearance for smaller properties of up to four units. Postponed payments for larger properties would be capped at six months. Borrowers could request forbearance until the pandemic ends, or until April 2021.
“Residents asking for either the rent or mortgage relief would have to prove a hardship related the coronavirus to receive the protections. Under both scenarios, renters and borrowers would have to resume consistent payments once the grace period ends,” the Bee reported.
California Gov. Gavin Newsom has extended an executive order that allows local governments to ban evictions until Sept. 30 and, as CUToday.info has reported, Congress is also looking at several related proposals.