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AB 832 – Legal Updates

ASSEMBLY BILL 832 / EVICTION MORATORIA UPDATE Overview of AB 832 1. AB 832 extends the current COVID-19 eviction protections under AB 3088 and SB 91 for 90 days, including the obligation to pay 25% of the unpaid COVID-19 rent through September 30, 2021. 2. It expands the existing State Rental Assistance Program to provide landlords with 100% of unpaid rent owed by qualifying tenants which will be paid to landlords for unpaid rent accruing between April 1, 2020 and September 1, 2021.

a. Not all tenants will qualify. Only tenants with an income at or below 80% of the area median income are eligible for the funds. b. Landlords who have already received the 80% from the rental assistance program will automatically receive the 20% increase without having to submit a new application. c. AB 832 will pay 100% of unpaid rent for qualifying tenants, even where the tenant has vacated.

3. AB 832 allows landlords to apply to the State Rental Assistance Program on behalf of the tenants and requires the rental assistance program to notify both the landlord and the tenant when either has submitted a completed application for rental assistance. 4. AB 832 requires state and local rental assistance programs to provide landlords and tenants easy access to online websites/portals which will allow both to verify the status of an application. Access is required to be made available on or before September 15, 2021. 5. AB 832 includes new provisions known as the “COVID-19 Rental Housing Recovery Act” (CRHRA) (which is different than, and in addition to, the “COVID-19 Tenant Relief Act”, (CTRA). 6. CRHRA creates new procedures for unlawful detainer to be implemented and used between October 1, 2021 and March 31, 2022. 7. As of October 1, 2021, a tenant is required to pay 100% of the monthly rent to be protected from eviction. This could change if AB 832 is extended. Required Informational Notice 1. Similar to AB 3088 and SB 91, a new informational notice must be given to all parties who owe a balance from the COVID-19 period by July 31, 2021. Residential Procedures 1. Relevant dates: “COVID-19 Rental Debt” period-March 1, 2020-September 30, 2021

a. First date to file civil COVID-19 Rental Debt Actions-November 1, 2021 (all civil actions seeking COVID-19 rental debt and which were pending before January 29, 2021 are also stayed until November 1, 2021, unless they were already pending before October 1, 2020)

2. 25% requirement ONLY applies if a landlord serves a 15-day notice for such period, so it is imperative to continue serving the 15-day notice every month 3. AB 832 has unfortunately greatly expanded local entities’ powers to extend their own moratoria calendars as follows:

a. The final date for the commencement of a repayment period is extended May 1, 2022.

b. The final date for the completion of a repayment period (i.e., the last date by which all repayments of COVID-19 rental debt must be paid) is now May 31, 2023. That means, for example, in the City of Los Angeles, the local ordinance provides for a repayment period of 12 months after the end of the local emergency. Under SB-91, that provision would have been illegal, as the prior completion date was August 31, 2021. However, if LA were to end their emergency status October 1, 2021, thus providing until October 1, 2022 to pay back all COVID-19 rental debt, that provision would now be legal.

Future Eviction Requirements 1. Beginning October 1, 2021, landlords are required to serve a tenant who fails to pay rent with a specific 3-Day Notice to Pay or Quit informing the tenant about how to apply for rental assistance. 2. When filing the eviction, the court will not issue a summons on nonpayment of rent unless the landlord files a statement that meets requirements

a. REQ 1: The landlord must include both of the following with the complaint:

i. Statement verifying, under penalty of perjury, that before filing the complaint, the landlord completed an application for government rental assistance to cover the rental debt demanded in the case, but the application was denied, AND ii. A copy of the “final decision” from the pertinent government rental assistance program denying the rental assistance application

OR

b. REQ 2: The landlord files a statement, under penalty of perjury, verifying that all four of the following are true:

i. Before filing the complaint, the landlord submitted a completed application for rental assistance to the pertinent government rental assistance program to cover the rental debt demanded from the defendants in the case, AND ii. Twenty days have elapsed since the latter of: 1. The date of the landlord submitted application OR 2. The date of the landlord served the tenant with the three-day notice. iii. The landlord has neither received notice, nor obtained verification from the pertinent government rental assistance program, indicating the tenant has submitted a completed application for rental assistance, AND iv. The landlord has received no communication from the tenant indicating the tenant has applied for government rental assistance.

Commercial 1. The governor extended the state law permitting local moratoria evictions to September 30, 2021. 2. It clear, though not guaranteed, this will be the final extension made as a “transitionary” period to full normalcy regarding commercial evictions starting October 1, 2021.

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Manage your Risk of Frivolous ADA Lawsuits

RSVP HERE: https://events.r20.constantcontact.com/register/eventReg?oeidk=a07ei4a70ly4708cb8d&oseq=&c=&ch=

Join Scott Brody from Scott Properties Group, along with AAGLA and other top property management panelists for another session of the Southland’s Top Property Managers as they discuss what YOU need to do right today to protect yourself from a frivolous ADA lawsuit. California property owners may face expensive litigation or damage claims for noncompliance with the Federal Americans With Disabilities Act (ADA) and the California counterpart, Title 24 of the California Building Code. Compliance with the Americans With Disability Act Accessibility Guidelines (ADAAG) is not only the law; it is smart business.  Learn what you need to do to protect yourself! During this webinar, we will discuss:
  • What accommodations may be required to ensure your properties are accessible to people with disabilities.
  • Understanding of requirements imposed on property owners under the ADA, Title 24 of the California Building Code, the Unruh Civil Rights Act, and the California Disabled Persons Act.
  • Real-life complaints and actions taken to defend against alleged violations of the ADA and California law.
  • Steps any property owner can take to review compliance with the ADA and California law.
  • How to handle requests for accommodations made by tenants, including documentation and follow-through.
  • And, much, much more…
This will be a live, interactive, online learning session.  Live Q&A will take place throughout the online seminar.  Please join us for what will surely be an extremely informative and timely presentation.

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California to Pay off all Past Due Rent Accrued During COVID, Giving Renters Clean Slate

via Newsweek.com California is paying off residents' past due rent that was accrued during the COVID-19 pandemic, giving renters a clean slate, Gov. Gavin Newsom announced recently. The state's $5.2 billion in funds from Congressionally-approved aid packages is enough to pay off overdue rent, according to Newsom's senior counselor on housing and homelessness, Jason Elliott, the Associated Press reported. However, just $32 million out of $490 million in requests for rental assistance through May 31 have been covered so far, according to a California Department Housing and Community Development report. Read More..

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A Pipeline of Retail And Hotel Foreclosures Is Forming

via GlobeSt.com The rate at which retail and lodging loans are moving into foreclosure is far short of the levels predicted when the pandemic gripped the country last March, with just 12 loans representing $270 million of outstanding balance officially beginning the process. A new analysis from Moody’s Analytics REIS also shows that the rate at which loans for those sectors are being modified has also decreased markedly after reaching a peak early last summer. A temporary spike in the rate in December yielded to a sharp decrease early in Read More..

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Retail Rent Collections Eclipse 90% Mark For First Time Since Pandemic

via GlobeSt.com Total retail rent collections approached 91% last month, the first time since March 2020 that collections eclipsed the 90% mark. May collections clocked in at 90.85%, up more than a percentage point over April figures, according to new research from Datex Property Solutions. National tenants performed even better than the national average, at 94.27% (versus 93.45% in April). Rent collections among non-national tenants came in at 87.12%, nearly two percentage points higher than April’s figure and only 1.4% off its 2020 high. And collections for both national and non-national tenants are now less than one percent from their peaks for all of 2020; at this point last year, aggregate collections were down 48% from current numbers. Read More..

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Landlords Are Ready to Restart Evictions Amid Pandemic; 11th Circuit Weighs Arguments

via GlobeSt.com As the weather heats up, so too does the fight to end the Centers for Disease Control and Prevention’s pandemic-related eviction moratoriums and restore landlords’ ability to take legal action against delinquent renters. And one of the groups driving the push is the New Civil Liberties Alliance, which presented oral arguments via teleconference before the U.S. Court of Appeals for the Eleventh Circuit in Brown v. CDC, an eviction moratorium lawsuit against the Centers for Disease Control and Prevention. Read More..

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Here are the Retailers Leading Rent Collections Right Now

via GlobeSt.com Salons and hair led the biggest month-over-month gains in rent collection in April, with increases of 8.21% and 9.97%, respectively, according to the latest Datex Property Solutions’ Tenant Track Report. They were followed by home goods (5.7%), drug stores (4.54%) and fitness (4.24%). The latest figures demonstrate how far the economy has come from rent collection lows a year ago, when the pandemic froze virtually every facet of American commerce. In April 2020, rent collection percentages dropped 35% from March numbers to 59.73%, and 62.97% for national chains. In April of this year, collections reached their highest levels post-pandemic 89.42% in aggregate and 93.44% for national chains. Read More..

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