AB-3088 is Now Law – What Property Investors Need to Know

AB-3088 is Now Law

Tenants Now Protected from Eviction Due to COVID-19-Related Back Rent Through February 1, 2021

Governor Gavin Newsom signed legislation yesterday to protect tenants from eviction due to the economic impacts of COVID-19. Tenants unable to pay all or part of the rent due to a COVID-related reason are protected.

What does this mean for rents owed?

• Tenants who provide a declaration of hardship according to the legislation’s timelines cannot be evicted before February 1, 2021, as a result of rent owed due to a COVID-19 related hardship accrued between March 4 and August 31, 2020
• For COVID-19 related hardship that accrues September 1, 2020-January 31, 2021, tenants must pay at least 25% of rent due to avoid eviction
• Tenants are still responsible for paying unpaid amounts to their landlords
• Landlords may begin to recover this debt on March 1, 2021
• Landlords who do not follow the court evictions process will face increased penalties under the Act
• New legal and financial protections available for tenants

What does this mean for small landlords?

• Extends anti-foreclosure protections in the Homeowner Bill of Rights to small landlords.
• It provides new accountability and transparency provisions. These protect small landlord borrowers who request CARES-compliant forbearance.

For additional details on AB-3088, read the full article published by the office of Governor Gavin Newsom.

Additional Resources

• COVID-19 Tenant and Landlord Protection
• AB-3088
• Statewide Renter Protection
• Newsom Signs 18 Bills to Boost Housing
• Newsom emphasizes CA’s housing shortage in proposed budget
• Cities Fine Up To $600,000/Month For Not Building Enough Housing
• California Order N-06-19
• Tenant, Homeowner, and Small Landlord Relief