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California to cover back rent accumulated during moratoriums

AP: “Gov. Gavin Newsom says California will pay off all the past-due rent that accumulated in the nation’s most populated state because of the fallout from the coronavirus pandemic, a promise to make landlords whole while giving renters a clean slate. Left unsettled is whether California will continue to ban evictions for unpaid rent beyond June 30, a pandemic-related order that was meant to be temporary but is proving difficult to undo. Federal eviction protections also are set to expire on June 30. California had passed its own protections that applied to more people. Newsom and legislative leaders are meeting privately to decide what to do, part of the negotiations over the state’s roughly $260 billion operating budget. An extension of the eviction ban seems likely to give California more time to spend all the money to cover unpaid rent. But landlords and tenants’ rights groups are arguing over how long that extension should last.”

“California has $5.2 billion to pay off people’s rent, money from multiple aid packages approved by Congress. That appears to be more than enough to cover all of the unpaid rent in the state, according to Jason Elliott, senior counselor to Newsom on housing and homelessness. But the state has been slow to distribute that money, and it’s unlikely it can spend it all by June 30. A report from the California Department Housing and Community Development showed that of the $490 million in requests for rental assistance through May 31, just $32 million has been paid. That doesn’t include the 12 cities and 10 counties that run their own rental assistance programs.”

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