California Extends AB 3088
Governor Gavin Newsom and legislative leaders announced that they have come to an agreement on an extension of California’s eviction moratorium (AB 3088) to help protect Californians affected by COVID-19. The extension is through June 30th, 2021.
The extension is aimed at protecting tenants and small landlords from losing their homes. During the announcement, it was also said that state leaders are moving as quickly as possible to distribute California’s share of the latest federal stimulus money. This includes up to $2.6 billion dollars in rental aid to help the most affected get caught up in rent and bills.
We will provide more information as it becomes available.
Fast Eviction Service would like to remind you that a tenant can still be evicted for nuisance matters and other just cause reasons including at-fault or no-fault reasons if the local ordinance allows. Tenants still need to comply in providing a declaration to the landlord within 15 days of being served the notice. High income tenants are also required to show documentation.
What is AB 3088?
The COVID-19 pandemic created many challenges for landlords and tenants alike, with economic shutdowns leading to widespread job losses and financial instability. In response, California passed Assembly Bill 3088 (AB 3088) to protect tenants from eviction due to nonpayment of rent while also providing some safeguards for landlords. But what exactly is AB 3088, and how does it impact rental property owners?
AB 3088, formally known as the “COVID-19 Tenant Relief Act of 2020,” was enacted in August 2020 as an emergency measure to prevent a wave of evictions in California. The bill placed temporary restrictions on evictions for nonpayment of rent, provided a framework for addressing unpaid rent, and helped landlords mitigate their losses during the pandemic. It’s essential for landlords, especially those managing properties in California, to fully understand this legislation, as it continues to influence eviction proceedings and rental agreements.
Key Provisions of AB 3088
Under AB 3088, tenants who faced financial hardships due to COVID-19 were given protection from eviction for unpaid rent accrued between March 1, 2020, and August 31, 2020. To qualify for this protection, tenants needed to submit a declaration of COVID-19-related financial distress to their landlord. The bill required landlords to provide a 15-day notice to tenants, giving them time to submit this declaration.
Additionally, AB 3088 introduced a “transition period” from September 1, 2020, to January 31, 2021. During this time, tenants were still required to pay at least 25% of their rent to avoid eviction. The remaining unpaid rent could be pursued in small claims court by landlords starting in March 2021, but tenants could not be evicted for these arrears as long as they paid the required 25%.
While AB 3088 provided critical protections for tenants, it also included provisions to protect landlords. For instance, it preserved the right for landlords to collect all unpaid rent, although they had to wait until 2021 to pursue the debt in court. This allowed landlords to recover their losses without immediately displacing tenants who were struggling financially. AB 3088 also ensured that any eviction actions for reasons other than nonpayment of rent (e.g., lease violations) could proceed, maintaining landlords’ ability to address tenant behavior that violated lease agreements.
Impact on Landlords
Though the intent of AB 3088 was to protect tenants, the legislation also created some challenges for landlords. Many landlords faced months of reduced or deferred rental income, which in turn affected their ability to maintain their properties, cover mortgage payments, and pay other operating expenses. For landlords with multiple properties or those who relied on rental income as their primary source of income, this was particularly difficult.
However, AB 3088 did provide some relief. The bill limited the circumstances under which tenants could be protected from eviction, ensuring that only those truly impacted by COVID-19-related financial hardships were eligible. It also provided landlords with a clear process for collecting unpaid rent at a later date, giving them a pathway to recoup lost income.
AB 3088 played a significant role in shaping California’s response to the COVID-19 pandemic, offering temporary protections for tenants while maintaining some level of security for landlords. Understanding the nuances of this bill is crucial for property owners, as it sets a precedent for future legislation that balances the needs of tenants and landlords during emergencies. For landlords navigating these challenging times, being familiar with AB 3088 ensures compliance with state law and helps protect their long-term financial interests.
Filed under: News and Updates