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evictions are changing yet again in california for landlords and tenants move over ab3088 it's time for sb 91. hey there christian walsh wire associates we are real estate brokers based in southern california who specialize in helping tenants and landlords buyers and sellers in california and beyond and eviction laws have changed yet again and you know we keep you right on the cutting edge of what's going on related to evictions so we're here to give you the big update we have a lot of ground to cover we're going to give you a quick update on eviction history in california since covet 19 started we're going to tell you what's staying the same in sb 91 and what's changing as compared to ab3088 we're going to give you the new deadlines for tenants and landlords and then we're going to talk about the stimulus fund by the way this is the place for the latest news for california landlords and tenants on eviction laws and a whole lot more so make sure you subscribe to our channel if you're ready hit that like button and we're gonna get started a few important things before we begin i can't give tax or legal advice so make sure you run this by the appropriate professional for tenants you can reach out to legal aid for landlords reach out to your local apartment association you will be able to find legal help at those respective places as of this filming the governor still needs to sign sp 91 but it looks like he is going to sign it sp 91 is taking over in lieu of two other bills that were under consideration ab15 and sb3 sb 91 only covers residential units make sure you look to see if you have a local eviction moratorium in your area here's your quick eviction history in california so just after the pandemic hit things were starting to get crazy we all remember late march well april 6th of 2020 the judicial council which governs all the courts in california stopped all evictions essentially no evictions were moving forward unless it was health and safety it was very tough to get those to move forward and this is both residential and commercial so the courts were closed and at a standstill along came ab3088 and it was passed the last day of august and went into effect on september 1st 2020. it allowed evictions to move forward again commercial and all other at-fault evictions were able to move forward but it put into place a lot of strict guidelines related to the non-payment of rent due to covet 19 and unlawful detainer actions ab-3088 said that any rent that was owed before september first any of that back grant a landlord could not evict due to non-payment of rent due to covet 19. going forward from september through january 31st 2021 if a tenant paid a minimum of 25 percent of their monthly rent they could not be evicted for non-payment of rent to covet 19. in steps sb 91 and changes things so what stayed the same sb91 does carry a lot over from ab3088 so termination of tenancies is still limited and we're going to run through at fault versus no fault but if you remember ab3088 made it tougher for landlords to terminate tenancies and that carried over to sp 91. a lot of the notices and declarations are going to be the same as ab3088 so landlord is still required to give a 15-day notice for non-payment of rent there's a few required notices and we have samples below of those they're very similar to the notices that were required at the beginning of ab3088 additionally a blank declaration of hardship due to covet 19 must be given from the landlord to the tenant the tenant has 15 days to return the declaration and that those 15 days do not include weekends or judicial holidays so all of that has stayed the same additionally the tenant is going to be required to pay a minimum of 25 of the monthly rent that's due and the list of things that a landlord can't do to a tenant who's not paying rent stays the same so they can't do these things or threaten to do these things a landlord cannot turn off utilities a landlord can't stop maintaining a unit a landlord can't reduce services so if certain things were given to the tenant to access to a clubhouse or access to a pool a landlord can't take those things away because the tenant's not paying rent the tenant cannot be illegally locked out a landlord can't empty a unit of all their belongings a landlord can also not threaten or actually call immigration services on a tenant this is the list it's not all exhaustive but these are some of the stories i've heard these are the things that a landlord cannot do or threaten to do and if a landlord is found to be doing these things there are very stiff penalties in california and the cdc eviction moratorium has stiff penalties as well let's do a quick update on at fault versus no fault just cause termination of tenancy so big thank you to bella my oldest daughter i have terrible handwriting and she did a great job outlining this there have been some updates since i did the first videos on ab3088 so i want to incorporate that into here and let you know what that is and this doesn't change under sb91 this stays the same for residential tenancies in the state of california so at fault versus no fault means whose fault it's the tenant's fault that's what it means so at fault would mean the tenant has done something wrong so non-payment of rent which is in green and i'll explain why but that is the normally the biggest example of an at fault just cause a reason to terminate a tenancy breach would be smoking when you can't smoke bringing a pet in something like uh like that nuisance uh is another example there's a technical definition a legal definition of nuisance criminal would be turning it into a meth lab subleasing bringing in other people not moving out after giving a legal notice uh which we'll discuss in a moment and then waste would be another big one and that is basically the tenant is not taking care of the place or has damaged the place so and there's a few others but this is the major list as far as non-payment of rent basically ab3088 and sb 91 say that non-payment of rent due to covet 19 is not a reason that you can terminate a tenancy can't move forward with an unlawful detainer so that's why it's in green it normally would be and i guess if somebody isn't paying rent and it's not covet 19 related you theoretically could do an eviction have an unlawful detainer move forward so no fault basically what ab3088 did was really shrink the list sb 91 carries the same list so no fault reasons a tendency can be terminated and in most cases it would be a 60-day notice if the tenant has been there longer than a year via 60-day notice so family moving into the rental unit so this would be the owner a significant other anybody in a straight line for the owner so that's uh grandparent parent child grandchild that straight line would be an example of a family member that can move in there is a required disclosure there's certain language that must be given to the tenant before you can use this as an excuse to terminate a tenancy a substantial remodel so this has changed initially some attorneys were reading it as it had to be a court-ordered substantial remodel and that is definitely one of the cases where it would be an approved no fault just cause termination but it also could be related to habitability so if basically the unit is lacks habitability that would be another reason that you're do if you're doing the remodel for that that would be another reason you could terminate the tendency technically if a landlord wants to come in and just kind of spruce things up and do things for cosmetic reasons that technically would not be allowable under sb91 the next would be selling if the owner is selling and the buyer is going to move into the property then the owner can give notice to the tenant so that the buyer can move in very important to note this is only for single family condos and townhomes so if it's a duplex or bigger this does not work then the last one would be withdraw from the rental market this is a very unique category that i have a feeling a lot of landlords are trying to use but definitely reach out to your attorney basically withdrawing from the rental market means you're not going to rent it out to anybody so you're getting that tenant out and you're saying you're not going to rent it to anyone so that's the list there's a quick update for you on at fault versus no fault the biggest change sb 91 is making to ab3088 is a change in dates so ab3088 was set to expire on february 1st 2021 tenants had until january 31st 2021 to pay 25 of the monthly rent they had missed in september 1st so these dates have changed sb 91 changes the february 1st in ab3088 to july first 2021. tenants now have until june 30th 2021 to turn in a minimum of 25 percent of monthly rent that has been missed and some more changes in sb91 and this is specifically landlords and recovering back rent so there are a few changes a landlord is not allowed to use a security deposit or a rent payment for any of the rental debt that's owed in the past without written consent from the tenant if a landlord receives rent they have to use that for rent going forward unless the tenant gives them permission and writing to use it for rental debt that's owed ab3088 allowed landlords to have the ability to go after back rent it had been converted into covet 19 rental debt which is a change of from rent to consumer debt landlords are able to go after that back rent in small claims court so a few things were changed there's no limit just as small claims court typically has a landlord doesn't have a limit to go back for actual rent that's owed and the landlord also could go back to small claims court more than two times in a year so if a landlord had four or five tenants they can go four or five times to recover that debt this date has been pushed originally it was going to be starting on march 1st it has been pushed to august 1 2021. another big change and this is in sb 91 it says that late fees cannot be tacked on to back rent and this is an interesting change some local moratoria had that in place others didn't address it and ab3088 did not prevent that but as of now a landlord cannot charge late fees for back rent owed here's another big proviso in sb 91 and that is going forward when a landlord rents to a new tenant a prospective tenant when they're screening that tenant they cannot use alleged rental debt and that's what the bill says alleged so even if you suspect that there's rental debt that's owed a landlord can't use this as a negative factor or a reason to turn down an applicant so that's very important for landlords they will not be able to use back rent as a way to screen tenants sb 91 has another big change in store it creates a rental assistance fund so what it does is it using the funds from the stimulus relief that was passed in the end of december using a part of that 25 billion so the state of california will get about 2.6 billion of that 1.5 billion is going to be set aside for a rental assistance program in the state of california the california rental assistance program will match the federal guidelines for the stimulus funds and i did another video on this and i'll have a link below so that you can take a look at that but the funds will only go to eligible households and by eligible households we mean that the household has a median income of 80 percent or less of the area it will give priority and the state of california will give priority to households where the income is 50 or less of median income and in households where there's been an individual who's been unemployed for three months or longer so those households will get the funds first in the other video i created i have a link so that you can determine how your income tenant falls in the area median the funds can be used for back rent also known as rent and arrears it can be used for forward rent or rent coming due in the future that's called prospective rent and it can be used for utilities and that's utility payments in arrears or perspective here's where it gets interesting so if a landlord agrees it's up to the landlord to agree they can take these funds to be used for back rent in exchange to relieve the tenant of the money that's owed now here's the caveat the most that can be paid is 80 of back rent that's owed the landlord will not be able to go after the other 20 percent they'll have to agree to take the 80 and they will not be able to do an unlawful detainer action this will be for the time period of rent that's due from the period of april 1st 2020 through march 31st 2021 so these funds can be used for back rent for that time period if the landlord does not agree to take the 80 percent the funds can be used in this way they can be used to cover 25 of the monthly rent that's due in any of the months that have been missed from april 2020 to march 31st 2021. if there's money left over the funds can then be used for prospective rent for rent moving forward so based on the dates in the bill this would be rent for may june or july the caveat here is it would be 25 of the monthly rent that's due for those months as for how the funds will be distributed they will come either from the state or if your locality is large enough if the population is large enough your local area may have a fund set up for distribution i know landlords and tenants are itching to get access to those federal funds and want to know more about when it's coming how to apply there's an interesting section in the bill it's 508 make sure you remember that you can look it up and see but what it is is this section outlines if a locality or even the state hires a vendor to manage the process what that vendor is required to do and there's some exciting details in there that you need to know so number one is they must start accepting applications by march 15 2021 they have to be able to accept applications 24 hours a day seven days a week it'll be an online system the other interesting fact is the landlord or the tenant can initiate the application so either side and it will notify both parties whichever party is initiated the other party will know the money will go directly to the landlord but the tenant absolutely will receive credit for it so those are some of the exciting details hidden in the bill related to the vendors so start looking it should be coming soon don't forget we have a link below to the full text of the bill so you can read it plus a link to ab3088 and some of the text in that bill that was carried over additionally we have samples of the notices that landlords must give out and we also have a link to subscribe to our email newsletter it's free and weekly and we cover topics for landlords and tenants buyers and sellers in california and beyond and make sure if you haven't subscribed that you subscribe to this channel because we are going to continue to cover timely topics for landlords and tenants just like sb 91 and any changes that may happen to sb91 so thank you for tuning in i want comments below let us know what are your struggles what questions do you have about sb91 let us know how things are going out there for you right now this has been christian walsh with wire associates i appreciate you tuning in