New legislation moving through the California legislature has the potential to create added economic distress for tens of thousands of small rental property owners throughout Southern California. While Assembly Bill 828 (Ting) is intended to help with the financial stress caused by the COVID-19 health crisis, it is a 25% blanket reduction of rent.
If passed, this bill will create even more economic distress for tens of thousands of small rental property owners who, like many renters, are already under immense financial pressure due to the COVID-19 pandemic.
The bill claims to be a temporary moratorium on evictions related to COVID-19. In reality, it provides a 25% blanket reduction of rent without due process.
As proposed, AB 828 requires the court, even if a tenant doesn't demonstrate a financial hardship as a result of the COVID-19 virus, to:
- Make an order for the tenant to remain in possession.
- Order the owner to reduce the rent for the property by 25% for 12 months.
- Require the tenant to pay monthly, 10% of the past due rent at the time of the order.
- Protect nuisance tenants by allowing them to NOT respond to unlawful detainer complaints.
The bill requires the courts to make assumptions about a property owners financial situation based on the number of units owned:
- If the plaintiff has an ownership interest in just one or two rental units, then the court shall presume that issuance of an order would constitute a material economic hardship.
- If the plaintiff has ownership in 10 or more rental units, the court shall presume that the issuance of an order would not constitute a material economic hardship.
- Allows the courts to change existing rental agreements and set new rents.
This bill completely ignores the realities of the rental market, the current economy, and the burdens property owners and managers are facing during this crisis.
Southern California Rental Housing Association (SCRHA) is dedicated to protecting the interests of rental property owners and managers. Join us as we URGE A NO VOTE and let legislative leaders know that AB 828 will compromise your ability to provide rental housing.