As housing aid dwindles, California landlords have one last chance to apply for aid

The watering hole is drying up!

The federal program that started it all, The Emergency Rental Assistance (ERA) Program, began with $46 billion. The program intended to bring relief and lower evictions during the pandemic and subsequent recession hangover.

The distribution of ERA in California served a total of 214,000 households and delivered an average $11,500 of delinquent rent per California tenant. However, landlords faced trouble accessing the funds, and the money ran out quickly.

As government housing aid circles down the drain, the federal government is searching for ways it can make the most of the money left over, which consists of a whopping $377 million nationwide. The federal government is taking back funds from states with unused funding and redirecting it to states in need of more: including California, according to the Office of the Press Secretary.

Now, some good news: California landlords and tenants who are still in need of aid have one last chance. Applicants and housing groups looking for assistance can find updates with the U.S. department of Treasury.

California landlords with tenants who are delinquent on rent may be eligible to receive a full 100% reimbursement of missed payments when the tenant successfully applies for ERA. To apply, delinquent tenants need to visit: http://housingiskey.com or call 1-833-422-4255.

Related article:

https://journal.firsttuesday.us/how-and-when-residential-evictions-will-resume-in-california/79855/

What will happen when the aid is truly gone?

California, being the most populous state across the nation, is still in need of housing aid. It often finds quick use of government assistance. The state has already spent large amounts in emergency aid to keep low-income tenants housed.

And yet, while the need for rental assistance continues, many landlords and tenants have not even applied. These landlords are anxiously watching the calendar for a chance to evict delinquent tenants. Starting April 1, 2022, eviction rules will revert to normal exceptions under the law. [Calif. Code of Civil Procedure §1179.11]

When this happens, the Tenant Protection Act (TPA) will control for landlords seeking to evict tenants. [Calif. Civil Code §1946.2(j)]

The TPA:

• caps annual rent increases at 5% plus the rate of inflation for much of California multi-unit residential properties; and
• requires “just cause” to evict tenants in place for 12 months or more.

Expect to see an increase in evictions in April 2022, as landlords take advantage of the end of the COVID-19 rental recovery window.

The TPA requires landlords to have just cause to evict tenants of properties built 15 or more years ago who have been a tenant for 12 months or more. Landlords lacking just cause to evict may need to provide financial relocation assistance, thus making it more difficult for landlords to evict tenants to rent out their properties to new tenants. [Calif. Civil Code §1946.2(a)]

To qualify for an at-fault just cause eviction, the tenant:

• defaulted on a rent payment;
• failed to enter into a landlord-requested renewal or extension of a lease which terminated on or after January 1, 2020 [See RPI Form 565];
• breached a material term of the lease;
• committed or permitted a nuisance or waste to occur on the property;
• conducted criminal activity on the premises or common areas, or used the premises for an unlawful purpose;
• assigned or sublet the premises in violation of the expired lease;
• refused the landlord’s authorized entryinto the premises; or
• failed to deliver possession after providing the landlord notice to terminate the tenancy or surrender possession. [CC 1946.2(b)(1); See RPI Form 576-1]

Related writings:                                                                    

How and when residential evictions will resume in California