Updates Expected on California's Assembly Bill 3088

We are expecting some preliminary news today from Sacramento with regard to California Assembly Bill 3088. As you may well know, the California Eviction Moratorium is set to expire at the end of this month and, while the details are not yet official, lawmakers in Sacramento and California Governor Newsom are expected to announce an extension of the law, in an attempt to delay what is perceived as possible “mass” evictions that would otherwise begin February 1st.

Here is what we have learned so far:

* Approximately $1.4 Billion provided in Federal stimulus funds are to be paid directly to rental property owners to cover 80% of unpaid rent for the period of April 1, 2020 through March 31, 2021.

* Tenant advocacy groups were opposed to the original round of proposals that would fund 60% of unpaid rent, and had been opposed to making direct rent payments to rental property owners. Because of this, it is now anticipated that tenant groups will indeed attempt to persuade lawmakers to vote against the new proposal, as well.

* These stimulus funds are to be used to forestall current evictions and, therefore, we do not believe money will be available to pay rent owed to property owners that have already recovered their units (e.g., the tenant(s) have already moved).

* We understand that rental property owners may be required to “opt-in” to receive the funds. We will keep you informed as to how to go about this, if this is indeed the case.

* California's eviction moratorium (e.g., A.B. 3088) will likely be extended through June 30, 2021 and we believe it could be extended again to beyond that date later this year, depending on economic factors and pandemic data.

* Property owners who agree to accept these funds must also agree to forgive 20% of past due rent and agree not to evict tenants for failure to pay the 20% owed.

* We believe that there will likely be additional rental assistance money to cover rent owed for periods beyond March 31, 2021 made available through additional Federal stimulus dollars or possibly from the State once tax filings are made and the Governor’s office provides a revised budget sometime in May 2021.

* It is our understanding that the bill will be made official in an announcement from lawmakers sometime today, and that the Legislature will be voting on the bill on Thursday during its regular session or possibly on Friday by calling a special session. If passed, we expect the bill would then go on to the Governor’s office for his signature immediately thereafter.

Please note that this information is all preliminary, based on announcements from apartment groups and lawmakers chatting with the press. While I have not yet seen nor studied these proposals as of yet, as they do become public, I'll keep you informed.