Eviction Moratorium: Capitol Mum as Renters Seek More Time

With two months to go before a statewide eviction moratorium expired in January, lawmakers, lobbyists and the governor’s staff were already deep into negotiations on an extension. They reached it just days before the deadline, providing six more months of a ban on eviction.

Now, with two months left before that extension itself expires on June 30, there is no proposed legislation on giving renters more time before the moratorium ends, and lawmakers expressed uncertainty that there would be.

“It remains to be seen if there’s appetite in Sacramento to extend the protections past June 30,” said David Chiu, a San Francisco Democrat who wrote the original eviction moratorium legislation. “But I don’t think any of my colleagues have an interest in seeing a wave of mass evictions.”

On Wednesday, a group of local-level elected officials, renters and tenant advocates called for an extension of the moratorium, either through legislative action or executive fiat, and a change to the elements of the law that still allow landlords to evict tenants for reasons other than failing to pay their rent.

“If we don’t get this right, we will struggle for generations to come,” said Carroll Fife, a member of the Oakland City Council.

One of the tenants’ primary objections was a major victory for their opponents, landlord advocacy groups, in the last round of negotiations: the state’s preemption of local eviction moratoria that went further than the state’s deadline, like those in the city of Los Angeles or Alameda County early in the pandemic.

Dean Preston of the San Francisco Board of Supervisors urged Gov. Gavin Newsom and legislators to allow cities and counties to set their own eviction moratoriums, as long as they went beyond what the state already made law.

“Don’t get in our way,” Preston said. “If you lack the spine to stand up to the real estate industry, you will have to live with that reality, but the minimum you can do is get out of the damn way.”

A spokesperson for Assembly Speaker Rendon declined to comment.

Housing activists and rent strikers participate in a vigil for tenants who they say will not be covered by Gov. Gavin Newsom’s rent relief plan at the Elihu M. Harris, State of California office building in Oakland on Jan. 29, 2021. Photo by Anne Wernikoff, CalMatters

The California Apartment Association, the state’s most powerful landlord lobbying group, is reviewing the need for another extension, but its chief lobbyist Debra Carlton said current legislation doesn’t account for tenants who refuse to apply for rental relief or those who don’t qualify for relief but still don’t pay rent.

“Housing providers who need help are slipping through the cracks because of issues with the current law,” Carlton said. “CAA will continue to evaluate whether an extension is necessary.”

Anya Svanoe, communications director for the Alliance of Californians for Community Empowerment Action, said the changes tenant advocates are calling for would likely come from amendments to the budget, which needs to be passed by June 15.

Activists and tenants also argued that some of the eviction protections instituted during the pandemic should be made permanent, especially a measure in SB 91 giving tenants 15 days to respond to an eviction notice. The previous range was three to five days.

CalMatters found the state’s plan to funnel $2.6 billion in federal funding into rent relief, as laid out in SB 91, has had mixed results. The state has received a total of 150,000 applications, and processed just more than 50,000 of them. More federal money is on the way.

“We are not seeing the level of participation in the rent relief program to warrant ending all protections on June 30,” Chiu said.

Activists and tenants also called for measures that failed to gain traction in the last round of negotiations, such as a total cancellation of rental debt and protections from credit agencies that will use rental debt to lower tenants’ credit scores.

“Renters are seen as transient, unreliable,” said Daniel Lee, a Culver City council member. “But while it’s the people who flip houses who only live there for four or five years, it’s the renters who stay.”

CalMatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.

18 Comments

  1. should have never left this up to landlord

    low down dirty trick by Newsom

    but time to move on, rent has to be paid

    if you owe rent, you’ve had more than enough time to make accommodations

    not everyone can live in the most expensive place in the US

  2. “Now, with two months left before that extension itself expires on June 30, there is no proposed legislation on giving renters more time before the moratorium ends, and lawmakers expressed uncertainty that there would be.”

    A qualified recall effort does just that. The last thing Gavin wants is more money pouring in to the recall campaign and the people who will be running to replace him once he’s recalled.

    Sorry everyone, but time to go back to work. Silver lining is there are plenty of jobs out there for those who want them.

  3. Actually here is the problem which is the answer.

    THe Current FEDERAL releif program provides RENTAL ASSISTANCE till Sept 30,2021, so the state is going to be REQURED to pass an extension to get the rest of that FEDERAL money, right?

    So we are not hearing anything because it is in fact an ALREADY DONE DEAL. THere is no negotiations involved. The fact WILL be come June the legislation will either be discussed or ALREADY passed.

    That might of course preven Gavin from either losing during the recall, or might even get him another term or a better office in the future, even maybe the OVAL office.

  4. When do we foreclose on the landlords who have leached working people”s meager resources since forever? Remember, the landlord lobby is also responsible for Propsition 13 which has been a fiscal and social plague on this state for more than 40 years. (Democrats have made Proposition 13 their very own free pass, their number one excuse for feigned super-majority trifecta political and legislative incapacity and impotence.)

    Euthanasia of big landlords through buyouts and eminent domain is the way forward. Transform slumlord property into public, low cost housing for working people.

    Euthanasia for establishment Democrats–who are big landlords’ ultimate insurance policy–is also on the agenda. The Bern may be gone, but the “afterbern” lingers on. Let’s take them on and take them down.

  5. Euthanasia of big landlords

    c’mon naw that’s a bit much

    the funny thing is the progressive initiative of eliminating $500K+ 1031 exchanges in combination with an raising LT cap gain rates will only push permanent capital into rural and working class suburbs while forcing investors to hold onto high value assets that have high accumulated cap gains will only push all prices higher and take more opportunity away from the middle class. Cash-out refi will be the new sell, and the rich will clean up more on being the first mover on inflation, borrowing good dollars to be paid back with worthless ones.

    punishing success never works, spreading opportunity does

    you want to hurt LLs, build build build until all the homes take a 50% haircut

    but your TOD bots, enviro-zealots, and displacement activists won’t have it, so your future looks like higher rent, chump

  6. DEFINITELY NOT SJ KULAK you wrote:

    “the funny thing is the progressive initiative of eliminating $500K+ 1031 exchanges in combination with an raising LT cap gain rates will only push permanent capital into rural and working class suburbs while forcing investors to hold onto high value assets that have high accumulated cap gains will only push all prices higher and take more opportunity away from the middle class. CASH-OUT REFI WILL BE THE NEW SELL, and the rich will clean up more on being the first mover on inflation, borrowing good dollars to be paid back with worthless ones.”

    CASH OUT REFI is a terrible idea, you wind up OWING money for a property you already own? Now normally I would not use Wikipedia, but from what I know it is accurate and is easier than me typing it out myself. And this writing also goes a bit further to say that just makes people owe more money and actually are more in debt:

    “Strictly speaking, all refinancing of debt is “cash-out,” when funds retrieved are utilized for anything other than repaying an existing loan.

    In the case of common usage of the term, cash out refinancing refers to when equity is liquidated from a property above and beyond sum of the payoff of existing loans held in lien on the property, loan fees, costs associated with the loan, taxes, insurance, tax reserves, insurance reserves, and in the past any other non-lien debt held in the name of the owner being paid by loan proceeds.”

    So you could wind up doubling your current debt, but feel real good doing it.

    Which is the reality in this country, everyone, even the so called wealthy are actually more in debt than with liquidity. Which is going to be the future crash of the economy in say about 2 years.

    But there is nothing that can be done, the current economic model here hit the iceberg in 2007 and didn’t repair the ship right, and the welds were defective, and we are back at sea and the welds are rusting off.

  7. You know nothing. Have you even done one cash out refi on a multifamily? Of course not.

    Inflation is a given – there is no going back now on MMT and owing is the only smart money in an inflationary environment. Cash is dumb. Lending is dumbest.

    Guess what? Your landlord is going to make a ton off that $100K unit you’re freeloading in. He’ll just cash-out refi at $600K a door (11 units or 12, I forget – times $250K in new debt/door – 2.75M) and then again at $800K a door (another $2M) and buy up houses for cash – maybe at $300K a house, say 16 houses. He’ll be collecting rent on 28 units then. And you or your replacement will service the debt for him, probably with the first 12-14 days of the month worth of take home off your labor. Of course by then, those houses will be worth $450K. And do it all over again and pay zero in cap gains and be one step ahead of inflation. Of course the cash you have in the bank makes it all possible with fractional reserves lending and your rent, that helps too.

    Double chumpinsky.

  8. DEFINITELY NOT SJ KULAK youy wrote:

    “Guess what? Your landlord is going to make a ton off that $100K unit you’re freeloading in. He’ll just cash-out refi at $600K a door (11 units or 12, I forget – times $250K in new debt/door – 2.75M) and then again at $800K a door (another $2M) and buy up houses for cash – maybe at $300K a house, say 16 houses. He’ll be collecting rent on 28 units then.”

    Not after my rent reduction petition demonstrates that he failed to maintain the property, which was already proven when the City of Mountain view warned him to get it fixed or get a possible penalty. Failure to maintain a property devalues it. Along with the 30% reduction in Single Bed units in my City, you have no idea what kind of trouble he is in.

    If my Rent Reduction Petition succeeds, he will not only have to refund overpaid rent to me, but EVERY unit in the building since June 2017. But since the City in effect ordered the repair’s, and I have my videos showing the lack of care, (wooden balconies should get annual CHECKUPS, like dental CHECKUPS to show proof of maintenance) and he has no record of such work, it looks like a very simple case of I have the preponderance of proof, and he has no defense.

    He just might have to pay as much as $100,000 to all of us in the building. You wrote:

    “And you or your replacement will service the debt for him, probably with the first 12-14 days of the month worth of take home off your labor.”

    Not likely given that AB 1482 amongst other things will cap the amount of rent increase between renters as well. Face it, the “Rental” housing market in this area is seeing the worst possible situation because IT workers who were contractors are not here anymore due to AB5, Dynamex, and Microsoft. It may never recover unless all Tech workers are employed and not working as contractors. You wrote:

    “Of course by then, those houses will be worth $450K. And do it all over again and pay zero in cap gains and be one step ahead of inflation. Of course the cash you have in the bank makes it all possible with fractional reserves lending and your rent, that helps too.”

    The land area of this building SHARES a driveway with another building and is less than 2 Acres in size so even the idea of razing the building to get “more” units is not a viable option here, and the most “other” housing would be most likely a triplex.

    Maybe you should stop shooting blindly regarding the discussion?

  9. SJ Kulak AND Definitely Not SJ Kulak,

    THank you very much, you just prvede you are posting as multiple people on this website and also SJSpotlight too.

    A Clear Violation of the terms and conditions.

    I will be happy to see you banned from writing on this forum given you cannot follow the rules.

    Thank you for proving it for me.

  10. Time to end the lockdowns, open the businesses and end ALL moratoria on rents. Let the landlords and tenants work out their contractual issues.

  11. HB,

    As you said let the LANDLORDS (First) abd Tenants (Second) work out their contractual issues.

    I amende that with, REQUIRE that EVERY teants gets FREE legal representation with regards to that CONTRACTUAL issues.

    So that no tenants EVER can get taken advantage of regarding negotiations, which has been the modis operandi of landlords in the state.

    And a STRONG regulatory agency designed so that when any questions of failiure of landlors to live up to the contract, they are held STRONGLY accountable.

    I am going to have my rights provided inder the Community Stabilisation and Fair Rent Act, in Mountain View, and I strongly urge all tenants and homowners pass similar laws or amendments to their city charter so that no future exploitation can happen.

    The best thing, it is funded by LANDLORD FEES, NOT taxes, so that the general funds for the cities are NOT TOUCHED, and it is INDEPENDENT of the City Council.

  12. By the way this is from the HB the wrote:

    “Here is a little data that supports the idea that at least half of the trans people are killed by their queer partners. Another huge risk factor about trans women is if they engage in street prostitution. A number of other articles suggest that the victims were engaged in prostitution.

    Very hard to get good stats but it would appear that the queer community is the biggest part of the problem.”

  13. By the way,

    Looks like Google is going to have PERMENANT 20% worker relocation , and they are NVER coming back.

    Most likely the same thing will happen with the rest of the “BIG TECH” groups here.

    Thus you are going to have a 20% drop in demand for the “BEST HOUSING” targeting these workers from now on.

    What a disaster for the retal housing market as a whole, given these workers would not own homes here anyway because they are SHORT TERMERS for the companies.

    THe rental market BETTER GET USED to this norm regarding earnings.

  14. DEFINITELY NOT SJ KULAK I just wanted to include this information regarding a so called cash-out ref from (https://themortgagereports.com/68932/cash-out-refinance-guide-rules-rates-requirements):

    “What is a cash-out refinance?

    A cash-out refinance lets you access your home equity and refinance your mortgage at the same time.

    When you use a cash-out refinance, your new loan will be larger than what you currently owe on the home. The difference is the amount you’ll receive in cash at closing.

    A few important notes on cash-out refinancing:

    Cash-out refinance rates are slightly higher than traditional refinance rates

    Your rate depends on your credit and how much cash you take out

    You can typically cash out up to 80% of your home equity

    Your new loan will be larger than your old one, so you’ll pay more in mortgage interest in the long run

    Cash-out refinance rates are one of the lowest-interest forms of borrowing and can be a good way to finance large expenses

    There are no rules about how you can or can’t use the funds from a cash-out refinance.

    “These additional funds can be used for many purposes, including home improvements, consolidating debt, and other consumer needs or wants,” says Tom Trott, branch manager at Embrace Home Loans.

    But because the loan is secured by your home, you typically want to spend your funds on something with a good return on investment.

    See a few good uses for your cash-out refinance here.

    How a cash-out refinance works
    A cash-out refinance works by taking out a new, larger mortgage loan to pay off your old one.

    The funds remaining after paying off your original mortgage are paid to you in the form of a check at closing. This is the “cash-out” component.

    Here’s an example of a cash-out refinance works:

    Home value: $350,000

    Current mortgage balance: $250,000

    Refinanced loan balance: $280,000

    Cash-out at closing: $30,000 (less closing costs)

    In the example above, the new loan first has to be used to pay off the existing mortgage.

    The remainder of the loan amount — $30,000 — is the sum you’re cashing out.

    You’ll also have to pay closing costs on a cash-out refinance, which are usually 3-5% of the loan amount.

    The good news is, when you refinance, it’s possible to roll closing costs into your loan balance so you don’t have to pay them upfront.

    But rolling closing costs into your loan does mean you’ll pay interest on them over time — so consider the long-term costs before deciding to do so.”

    Why is it that I always can find information that makes others writings not sound like a good idea?

  15. you can google whatever you like, you are clueless, you own nothing, and you dont know how cash flows on rentals work, what is the appropriate LTV levels to maximize valuation while minimizing taxable events

    you think in terms of how you can game pandemic to not pay rent and think valuations are based on labor inputs

    you are utterly clueless and it is best for you to not take any risks because you are so wrong

  16. SJ KULAK you wrote:

    “you can google whatever you like, you are clueless, you own nothing, and you dont know how cash flows on rentals work, what is the appropriate LTV levels to maximize valuation while minimizing taxable events.”

    I do not need to make a mistake if the free good information indicates that it would be the WRONG choice. You are just saying you expect everyone to make the same mistakes to most likely keep you in business You wrote:

    “you think in terms of how you can game pandemic to not pay rent and think valuations are based on labor inputs”

    That information above has NOTHING to do with labor at all. It is Dollars and that is it. You just don’t like it when you do not have any objective evidence to contradict what is actually well known information. You wrote:

    “you are utterly clueless and it is best for you to not take any risks because you are so wrong”

    Again, I take many RISKS, but NOT FOOLISH ONES LIKE YOURS.

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