AB 832 will extend the existing eviction moratorium and rental assistance program to September 30, 2021, which will be the largest and most comprehensive rental assistance program in America. Under AB 832, landlords and tenants can receive 100% of back rent that is owed.
Additional steps will offer significantly stronger incentives for landlords to utilize these funds, as well as protections for tenants. Either a tenant or a landlord may initiate the process for rental assistance.
What the extension means for tenants and landlords:
- Pays up to a year of unpaid back rent (from April 2020) and allows up to three months of future rent payments depending on availability of funds.
- Prioritizes households with highest need, targeting households with less than 80% area median income (AMI) with special focus on households below 50% AMI and households experiencing unemployment for at least 90 days.
- Offers participating landlords 100% of a tenant’s remaining back rent owed. Landlord can be “topped up” if they’d already been paid under the previous arrangement.
- Pays 100% of back rent owed by the tenant even if the landlord declines to participate.
- Tenant must pay landlord within 15 days of receiving the funds or face penalties.
- Beginning October 1, 2021, the extension creates a process to ensure that rental assistance is sought by the landlord prior to the filing of an unlawful detainer.
- Includes a process that prevents a court from issuing a summon if the landlord cannot prove they attempted to apply for rental assistance and that either the tenant didn't qualify or the program ran out of money.
Utility Assistance:
Assistance is available for 100% of unpaid rent and utilities, dating back to April 1, 2020, as well as future rent and utility payments. Utility payments will be paid directly to utility providers at 100% of cost, but are limited to a total of 12 months.
What else should you know?
The application process has been significantly simplified. It now takes less time to complete, requires less paperwork to be uploaded, and offers helpful tips throughout the application.
Assistance from the CA COVID-19 Rent Relief program does NOT count as earned income for renters and will NOT affect eligibility for any other California state benefit assistance programs, such as CalFresh and CalWORKS. All applicant information is kept private and will not be shared. Income-eligible applicants may qualify regardless of immigration status and will not be required to show proof of citizenship.
- Extends current eviction protections to September 30, 2021.
- Increases rental assistance payments to give 100% of rent owed for eligible landlords and tenants.
- Allows a tenant to receive full amount due so they can pay rent if the landlord doesn’t participate in the program so that they are not carrying it as consumer debt.
- Creates a process to ensure that from October 1, 2021 through March 31, 2022, struggling tenants impacted by COVID-19 will still be protected under state law.
- Permanently “masks” (meaning the information remains confidential in the court process) unlawful detainer (eviction) cases related to COVID-19 rental debt, thus protecting tenants from having unpaid rental debt held against them when they seek future housing.
- Permanently masks COVID-19 rental debt civil cases, thus protecting tenants from having these cases impact their consumer credit.
- Increases rental assistance payments to give 100% of rent owed for eligible landlords and tenants.
- Allows a longer timeframe for rental assistance funds, so more unpaid rent can be covered. Matching updated federal rules, rental assistance can apply to any rent debt accrued on or after April 1, 2020.
- Authorizes rental assistance payments to be provided to landlords in situations where the tenant has moved out and now lives in a new place, but still owes rent payments to their prior landlord.
- Requires a tenant to fill out the necessary paperwork for the rental assistance program within 15 business days of receiving notice of their landlord filling out its portion when a three-day eviction notice has been served.
- Beginning October 1, requires rental assistance programs to create a pre-screening process to allow landlords and tenants to easily find out if the tenant meets income requirements (household income less than 80% Area Medium Income). If a tenant doesn’t qualify for the rental assistance program or refuses to participate in the program, or program funds have been exhausted, the landlord would be allowed to continue with the eviction process.
- These eviction protections do not apply to new tenancies beginning on or after October 1, 2021.
Visit HousingIsKey.com or call 1-833-422-4255 to learn more.