California Legislature to Discuss Possible Economic Relief Package?

An announcement may be forthcoming from Sacramento as early as this Monday with legislative priorities and a goal of providing as much as $100 Billion over the next several years to help with California’s economic recovery.

One priority item expected to be included would be a financial assistance package for both rental housing providers and the State’s renters. Unfortunately, it is anticipated that the financial assistance package to help landlords will be in the form of Senate Bill 1410, the so-called “COVID-19 Emergency Rental Assistance Program,” under which the State would cover 80% of unpaid rent obligations of qualified renters, and housing providers would be required to write-off 20% of past due rent owned them. We believe that Senate Bill 1410 is controversial and will be of limited, if any, relief to rental housing providers.

Currently, the financial package assisting renters is still under discussion. We do not have any insight into what form for renter relief there may be.

As part of the possible announcement, it is anticipated that no specific legislation or bill numbers will be referenced, and that only general concepts will be outlined. Given the shortened legislative session and the current state of emergency, many legislators are asking Governor Newsom to call a special legislative session to provide additional time to discuss and create an economic recovery package.

We anticipate that funding for this economic recovery package will likely come sources such as financing future State revenues such as the gas tax, “cap and trade,” and other funding sources and revenue streams. Of course, there’s always more taxes!