Q&A: Rental Relief is Available for Landlords Under S.B. 91 – What YOU Need to Know to Receive Fundi
Date postedMarch 26, 2021
On Thursday, March 18th, in conjunction with the California Rental Housing Association, we hosted an AAGLA Member Webinar titled “Rental Relief is Available for Landlords Under S.B. 91 – What YOU Need to Know to Receive Funding”. We had multiple members write in questions regarding the different rental assistance programs, the application process, how to qualify for rental relief, how to work with your tenants in order to submit your application, and more.
We understand your concerns at the time and have provided in-depth answers in order to help you better understand requirements and processes to obtain funding to pay past due rental debts that are owed.
Question |
Answer |
| Are there two different programs that pay in different ways and require two sets of applications (e.g., from funds provided in December 2020 and this new stimulus bill)? If so, do they complement each other, does one reduce the amounts paid by the other? | This is still unknown as we wait for new Treasury guidance, but both Senate Bill 91 and the Program were structured to allow for new funds to be added to the existing program. If you have received funds under a previous program, then those funds must be applied to rent owed and reduce the amount of rental debt applied for under this latest program. |
| If a landlord has assisted tenants by reducing the amount of rent due (either temporarily or permanently), can the landlord apply to receive assistance based on the original amount of rent without considering the reduction? | When a landlord agrees to a rent reduction, either temporary or permanently, that amount is no longer owed, and cannot be applied for as part of the rental relief program. |
| My tenant has already moved out. Do I qualify for the 80% rental relief? May I still apply? | If the tenant has already vacated the rental unit, then it is unlikely you are eligible for the rental relief program. You can send an email to support@ca-rentrelief.com to work with a case manager to confirm. However, the main purpose of the program is to ensure Californian can continue to remain housed, not to necessarily repay landlords for lost income. |
| How will applications for rental relief be prioritized Will applications be processed on a first come, first served basis? | In order to qualify for rental relief under the program, tenants must meet the income requirements of 80% or below the Area Media Income (AMI) for the county is which the rental property is located. First priority will be given to those tenants that are at or below 50% AMI, and based upon available funds, funding will be provided to qualified tenants who are in the up to 80% AMI bracket. |
| What if my tenant refuses to cooperate in the application process? What can a landlord do when the tenant refuses to apply for the relief? | Under Senate Bill 91, landlords are highly encouraged to apply or to assist their tenants with applying for this or any other rental relief. If and when, as a landlord, you eventually file a complaint seeking to collect the rental debt owed and/or an unlawful detainer (eviction) lawsuit, you will need to show the court evidence that you attempted to assist your tenant with obtaining rental assistance. Landlords are not obligated to particulate and accept the 80% rental relief (and, therefore, write-off the balance of 20% owed) and tenants are not obligated to apply or assist in the process of applying. However, under thelaw, a judge can hold it against a landlord for not making the attempt. Landlords are, therefore, encouraged to maintain documentation (e.g., emails, letters, notices, etc.) on how they may have notified their tenants of available rental relief programs and/or applied for rental relief on behalf of their tenants. |
| If rent was unpaid for the month of March 2020, the rental relief program does not cover this month. Rental relief is available for the months of April 1, 2020 through March 31, 2021. Is there anything I can do about March 2020? | This program can pay you 80% of rent owed from April 1, 2020 to March 31, 2021 if your tenant qualifies. For March 2020, depending upon the circumstances with your tenant (e.g., still housed by you, COVID impacted, local laws, paid 25% of rent due per S.B. 91, etc.), you can at some point file an unlawful detainer lawsuit or seek to collect the amount owed in small claims or a civil court. |
| Please direct me to the link on the State’s website to the application forms for landlords? | See: https://housing.ca.gov/ |
| Is this presentation being recorded for future review? | Yes, this presentation is being housed on the website of the California Rental Housing Association (CalRHA) at https://cal-rha.org/ca-covid-rent-relief/. Each of CalRHA’s nine affiliated apartment associations will also have this webinar presentation available on each of their websites in the future. |
| Are tenants still required to pay 25% of their rental through June 30, 2021? | It is not “required” that tenants pay 25%. But in order to avoid eviction for non-payment of rent, they would need to pay you 25% of rent due from September 1, 2020 through June 30, 2021 and provide a signed declaration in order to avoid being evicted for non-payment of rent. If that all occurs, the 75% of rental debt remaining will then be converted into consumer debt and you cannot eviction for non-payment of that debt – but you can pursue collection of it on or after July 1, 2021. If you and your tenant apply and receive 80% funding under the rental relief program, likely the amount you as a landlord receive will be sufficient to meet the 25% of rent due between September 1, 2020 and June 30, 2021, so your tenant would then be protected from eviction. |
| If a landlord and tenant apply for and receive the 80% funding between April 2020 and March 2021, can a tenant also apply for and receive the 25% for April 2021 through June 2021? | After receiving funding for 80% rental relief, a tenant may still apply for the additional 25% covering the months of April, May and June 2021; however, there are no assurances the tenant will qualify. |
| Will this funding affect Americans With Disabilities Act (ADA) requirements? | There is nothing in Senate Bill 91 dealing with ADA requirements. |
| Three of my tenants are not able to pay rent or refuse to pay rent, but only one has responded by providing a declaration in response to my 15-day notice to “pay or quit.” What should I do? | You should seek legal advice for your particular situation, as any response is dependent upon factors such as your jurisdiction, whether your rental property is subject to a rent control ordinance, etc. Nevertheless, the fact that one or more of your non-paying tenants has not responded to notices served upon them should not be a factor in whether you as a landlord decide to apply for rental relief funding. While landlords are not obligated to particulate and accept the 80% rental relief (and, therefore, write-off the balance of 20% owed) and tenants are not obligated to apply or assist in the process of applying, under the law, a judge can hold it against a landlord for not making the attempt. Landlords are, therefore, encouraged under Senate Bill 91 to assist their tenants with seeking rental relief and should maintain documentation (e.g., emails, letters, notices, etc.) on how they may have notified their tenants of available rental relief programs and/or applied for rental relief on behalf of their tenants. |
| It was my understanding that if landlord does not take the 80% there is a chance that the tenant would get the 25% and the courts would not make them pay the balance of 75% later …is this true? | Yes, and no. When a landlord does not agree to participate in the application process to get the 80% relief, a tenant may apply for 25% of rent due between April 1, 2020 and March 31, 2021 and may be able to apply for 25% of rent due for the months of April, May, and June 2021. Bear in mind that under Senate Bill 91, Landlords are encouraged to assist their tenants with seeking rental relief and should maintain documentation (e.g., emails, letters, notices, etc.) on how they may have notified their tenants of available rental relief programs and/or applied for rental relief on behalf of their tenants. |
| How do tenants apply if they do not have a computer? | Tenants may set an appointment with a member of our Local Partner Network, and they will help complete the application on behalf of tenant. Tenants may also use smartphones or tablets to complete the application. |
| How is the household size determined for purposes of AMI? Can a resident include dependents not named as a lessee or occupant? | Tenants should include every member living in the household, including dependents, when they identify their household size. |
| If a landlord receives the 80% rental relief funding, can they evict at a future time, for a future time frame, for nonpayment or other reasons, including evicting tenants to sell a house? This pertains to a single-family residence (non-Rent Stabilization Ordinance) in the City of Los Angeles. | Let us address non-City of Los Angeles rental properties first. Evictions are now permitted under certain circumstances such as non-payment for reasons other than due to COVID-related financial distress, certain no-fault reasons such as an owner move-in, and lease breaches other than non-payment. Senate Bill 91 expires on June 30, 2021, so owners will be permitted to eviction tenants for rent payments missed after June 30th. |
| What happens if a tenant applies through the State’s rental assistance program but the tenant lives in a local jurisdiction that is processing and distributing assistance funds locally as in the case of the City of Los Angeles? | You will be directed by the state website to your local jurisdiction’s application process if, like in the City of Los Angeles, applicants are being processed locally and funded locally. |
| What happens if a tenant applies before the landlord? | The landlord will be notified via email if the tenant applies first. |
| Are landlords eligible to receive rental relief funding for people who have not paid and have either given up possession or have been evicted (legally) between April 2020 to Mar 2021? | If the tenant has already vacated then I do not think you are eligible for the program. You can send an email to support@ca-rentrelief.com to work with a case manager to confirm. |
| How will the distribution of funds as it relates to Area Mean Income (AMI) parameters work for jurisdictions who have chosen Option B? Some cities are saying landlords may apply if a tenant makes 80% AMI or below, yet they are prioritizing funds for 30% and below and they do not anticipate funding will be available for anyone making 30%-80% AMI. | Prioritization is being afforded to those in the 50% AMI or below category per Senate Bill 91, and it is possible funds may become exhausted depending upon applications received and rental debt outstanding for those tenants in the lowest AMI categories. |
| What landlords do not qualify for this program? | The beneficiaries of the program are households. Eligibility is fully dependent on tenant household criteria. Landlords must be the property owner, or an authorized manager, and must have some sort of rent agreement with the tenant. |
| Does ‘unpaid rent’ cover other charges such as parking, RUBS (utilities), storage, etc.? Or is this rental assistance program strictly for past due rent only? | The definition of “rents” includes the costs identified in the rental agreement, so if costs like storage or parking are bundled in the rent price for the unit, those costs are eligible. |
| When will the City of Los Angeles start this program? | The City of Los Angeles is supposed to be open for landlord applications from March 30, 2021 until April 30, 2021. As always with the City of Los Angeles, this could be subject to change. |
| What if tenant ignores the landlord’s application or landlord’s request that the tenant apply, but Landlord wants to participate? | You cannot force a tenant to participate, but as a landlord, you will be required to show proof that you tried to assist your tenant with getting rental relief through this program and/or others. If you are willing to take the 80% deal, you should apply whether or not you think your tenant will also apply. As a landlord, you are not obligated to apply, but the law makes it so you are almost obligated to assist with the application process and will be asked to show proof of that or a judge could look unfavorably at your request for money damages or eviction later on. You should consider at least making the attempt to apply. You cannot force a tenant to apply. |
| What if the tenant does not have an email account or a computer? What if the landlord does not have either an email account or computer? | Tenants will be encouraged to set up a free email as part of application process through our partner networks. There are options to select phone or mail as alternative contact options for case management, however they will need an email to initiate the application. The same holds true for landlords. |
| What if my tenant had a business that was closed and they did not receive unemployment? Do they qualify? | It is impossible to know if they qualify, but if they can meet the documentation requirements to show they fall below 80% AMI, then they may be able to qualify. The tenant may be able to supply other documents to meet the proof of income requirements and can seek assistance through the State’s hotline. |
| Can we evict a tenant if the tenant is above 80% AMI, has months of unpaid rent, did not return a declaration of COVID related financial distress, and has not been paying the 25% of rent due? | “It depends” is the answer. Please seek legal advice as every situation is different and the answer is dependent upon the local jurisdiction’s laws and many other factors. There is too much money that is owed landlords today, and the laws are very complicated, so DO NOT try to “D.I.Y.” Do not “do it yourself.” |
| For qualified tenants based on AMI, do they automatically qualify for the rental relief program by owing rent in and of itself? | Qualifying tenants based on income level and other factors, including providing required documentation, may “qualify” for relief, but that does not mean they will receive relief. First, a tenant’s landlord must apply and be able to provide appropriate documentation. Second, there is no guarantee that there will be sufficient funding available. |
| What if the tenant doesn’t meet the income restriction? Is there any relief for the landlord? | Under this program, no. |
| Is the City of Los Angeles’ rental relief program going to be available on March 30, 2021? I heard there is a $10,000 limitation of rental relief, is that true? | There is no longer a “cap” in the City of L.A. The City learned that a “cap” would not follow Federal Guidelines, so they dropped it. Currently, the City of Los Angeles plans to accept applications from landlords from March 30, 2021 until April 30, 2021. |
| The “Application Quiz” on the website stated that I do not qualify but did not give me a reason why. Based upon my review of the eligibility requirements, I think I do qualify. What should I do? | You should still apply on the State’s website and see what happens. |
| How does the area mean incomes (AMIs) work for tenancies with multiple individuals on the lease/ In our case, six individual renters rented a large house together? Several lost their jobs. How are the AMIs, determined here? (Household size of six? All of the incomes combined?) | You need to look at the total household income, so aggregate of all six residents in the tenant household. |
| What is the income threshold to apply this program in the City of Los Angeles? | The area median income (AMI) for Los Angeles County for a family of 4 people is $77,300. AMI varies based on the number of individuals living in a household (minors and adults). You can check the AMI based on number of adults on the Apartment Association of Greater Los Angeles website at www.aagla.org or you can use a search engine to find this information through the Internet. There is no income qualification for a landlord, only documentation requirements and being owed rent. |
| Are tenants who are Section 8 voucher holders eligible to apply for these funds? | Yes, if a tenant meets the financial requirements (after factoring in the value of the Section 8 voucher as income) and owes past due rent, they may qualify. |
| Will an application be approved simply if a resident owes rent and earned less than 80% of area median income (AMI) in 2020 or will they need evidence supporting that it was COVID related? |
Like all government funded programs, appropriate documentation will be required as part of the application process. There are various criteria for tenant qualifications in addition to AMI.
|
| How does the “income verification” work if the people were laid off. The point is that they have no income…They may not be able to provide a Form 1040. | Other documentation is accepted such as a letter from their former employer. |
| How do I prove current rental amount for long term tenants where the lease shows a rental amount that is not current? | Usually there’s documentation of rent increases that gets sent to tenants (30-day notice of change of terms). If you were not aware that you needed that documentation, you really need to join an apartment association. Hopefully you can provide some type of documentation evidencing the amount of current rent. |
| What about a landlord or property manager with multiple properties and different owners or ownership entities? Do each have to apply for the rental relief funding separately? | Yes, each owner / entity should apply separately. |
| If tenant is planning to move out after May 2021, may a landlord and tenant still apply to receive 80%? | Yes, if the application is processed while the tenant remains housed in the landlord’s rental unit. |
| The City of Los Angeles seems to have a different eligibility threshold than the state. The City’s website states that “the household income is at or below 50% of the area median income (AMI).” The state says 80%. Which one applies to City of Los Angeles tenants? | The City of Los Angeles will be required to follow State and Federal guidelines, so limitation to 50% AMI would not be possible when State law covers up to 80% AMI. |
| Is it recommended to apply for this rental relief program even if the tenant already has applied to previous rent relief assistance program? | If your tenant still owes rent between April 1, 2020 and March 31, 2021, after taking into consideration previously rental relief paid under other programs, you and you tenant are not precluded from applying for this program. |
| Does this rental relief program apply to commercial tenants as well or only residential? | The purpose of this program to assist Californians with staying housed, so it would not aid commercial tenants. |
| My tenant claims he is supporting a dependent who does not live in the residence (e.g., child is attending college). Would this dependent be excluded in determining household size? | Not necessarily. If a child is a dependent and living temporarily in another location due to school, then you may be able to count the child / student as part of the household. |
| I am small landlord and have never filed a Form W-9. Is that needed? | Yes. A Form W-9 is an IRS form that can be found on the Internet, which provides your social security number or tax identification number. Payments you receive under the rental relief program are taxable and will be reported to the IRS. |
| May I apply for the squatter tenant in the City of Los Angeles, that was left behind by my previous tenant who has since passed away and left his squatter brother who is not my tenant. Unfortunately, I cannot evict him since he is claiming the City to stay due to COVID. | You may be able to apply for an occupant of your rental unit (vs. a tenant). You should also consult with an attorney about removing our “squatter.” You may have options and legal remedies. |
| Can a master lease tenant for a multiunit residential property work with a property owner to apply for rental assistance for subtenants? The lease is with the master lease tenant. | You may be able to do so but would need to apply on behalf of the master sublessor, who probably has not paid rent to you. |
| When applying for the 80% rental relief, are landlords required to document that they have served a 15-day notice to the tenant for the particular time period involved? | No. The documentation requirements for landlords are:
|
*Please note, this Q&A is for general information purposes only. Before acting, be sure to receive legal advice from an attorney.
Got More Questions?
California Business, Consumer Services, and Housing Agency
Housing is “Key” Website for Rental Relief Program: https://housing.ca.gov/.
For Support Email: support@ca-rentrelief.com
Or, Call Hotline at (833) 422-4255
California Business, Consumer Services, and Housing Agency
Housing is “Key” Website for Rental Relief Program: https://housing.ca.gov/.
For Support Email: support@ca-rentrelief.com
Or, Call Hotline at (833) 422-4255