SB 939 and AB 828: Evictions and Foreclosures in California during the Covid-19 Pandemic

Due to the COVID-19 outbreak many issues have come up affecting our communities. One particular issue affecting millions of Californians is rent. How will landlords keep asking tenants to pay rent, when millions of workers in California have lost their jobs due to this pandemic? Members of the California Legislature, Scott Weiner and Phil Ting have taken immediate action to resolve these types of concerns that were not clear under Governor Newsom’s executive order. Scott and Phil have introduced two bills, SB-939 and AB-828. Please read below for more information on the two introduced bills. Government affairs firms like CIMA Law Group, take initiative to monitor bills like SB-939 and AB-828. For more information provided by this government affairs firm, continue to read below.

What does SB-939 consist of?

SB-939’s ultimate goal is to attempt to prohibit the evictions of tenants that rent commercial real properties such as businesses and non-profit organizations. If a violation of this bill were to happen on behalf of landlords, they could be facing up to a $10,000 and even a year in county jail. SB-939 will also make evictions unenforceable since March 4th, 2020 when Governor Newsom declared an emergency of state in California. However, evictions that took place before March 4th, 2020 will not be prohibited under SB-939.

What does AB-828 consist of?

Like SB-939, AB-828 was introduced to also impose a suspension on evictions, however foreclosures as well. This bill will consist of no evictions or foreclosures during the state of emergency declared by Governor Newsom and even extends to fifteen days after the state of emergency is over. This bill also allows courts to set up a repayment plan for tenants that may go through March 2021 if the resident can prove economic struggle. In conclusion, AB-828 allows tenants to stay in their homes during this time of crisis.

What should Landlords do?

There’s no doubt that during this time there will be struggle for both, landlords and tenants. Solutions will have to depend on each landlord and tenant’s specific situation. If you as a landlord would like more assistance in regards to handling certain situations with tenants, make sure to check in with your city’s order or contact CIMA Law Group for guidance from a government affairs firm. If you are interested in getting more information please refer to firms that work with government relations. Continue to read for some additional tips and guidance if you are a landlord.

Tips for Landlords

1. Look up regulations in your city Cities in California have issued different bans and suspensions on evictions. Make sure you follow your appropriate local guidelines. Check your local firms that deal with government relations, to get a better understanding of regulations in your city.
2. Communicate with your tenants. Having good communication can help you learn about tenant’s current situations and set up monthly payment plans with individuals. Communicating can also inform you if there’s any other way you could assist them.
3. Contact your lender. It’s important to keep clear and transparent communication with you lender to inform them about the situation you are having with your tenants. Lenders may be able to provide solutions for you as well, make sure to contact them.
4. Virtual tours. Selling or renting units might be a little more difficult right now due to COVID-19, however, offering virtual tours of vacant units, waiving, certain fees, or some type of incentive can help boost filling up those vacant units.
5. Government loans. If you have no other assistance to rely on and your lender is not cooperating with you, checking to see if you qualify for a government loan can offer temporary relief during this pandemic.

If you would like more information in regards to SB 939 and AB 828, contact CIMA Law Group and speak to a government relations specialist.

– Maria Campos Tello