S.B. 91 Rental Relief Update – Application Requirements and Documentation Needed Announced by State

Governor Gavin Newsom signed Senate Bill 91 on January 29, 2021. With its passage, up to $2.6 billion in Federal COVID relief funding will be available to pay landlords of certain qualifying low-income renters up to 80% of rent owed due to COVID-19 financial related hardships, or if landlords are unwilling to accept 80% of rental debt owed and write-off the balance of 20%, qualifying tenants may also apply for and seek up to 25% of rent owed between September 1, 2020 and June 30, 2021. Senate Bill 91 replaces and extends protections afforded renters under Assembly Bill 3088, which expired January 31, 2021.

Recent Update

The State of California has launched its website and is now taking tenant applications only. Go to: https://ucilaw.neotalogic.com/a/Cal-Covid-Info-App-for-Tenants-and-Landlords

The City of Los Angeles plans to launch its application website for tenants only on Monday, March 15, 2021 with the landlord application to be available in April.

Requirements For Landlords

Landlords who have one or more eligible tenants may apply to be reimbursed for 80% of each eligible tenant’s unpaid rent between April 1, 2020 and March 31, 2021. By agreeing to accept the 80%, landlords must agree to waive the remaining 20% of unpaid rent for that specific time period. In accepting the 80%, landlords must agree to the following: (i) All payments must be used to satisfy the tenant’s unpaid rent for the period between April 1, 2020 and March 31, 2021; (ii) Tenants must take steps to verify that they meet eligibility requirements and sign the application; and (iii) Tenant’s household income must be at or below 80 percent of the Area Median Income (AMI). (The Area Median Income or “AMI” for Los Angeles County is $77,300 for a family of four.)

Before applying, landlords may be required to provide some or all of the following information:

• Property Deed(s)
• Mortgage Note(s)
• Property Tax Statement
• Copy of Property Insurance Statement
• Lease or rental agreement reflecting tenant’s name, residence address, and monthly rent due

Requirements For Tenants

Eligible tenants whose landlords choose not to participate in the program may apply on their own and receive 25% of unpaid rent between April 1, 2020, and March 31, 2021. In addition, tenants have an opportunity to apply for and receive 25% of rent due between April 1, 2021 and June 30, 2021. In order to be eligible, one or more individuals in a tenant’s household must meet all of the following requirements in order to be eligible to apply:

• Have qualified for unemployment benefits or experienced a reduction in household income, incurred significant costs, or experienced other financial hardship due to COVID–19; and
• Demonstrate a risk of experiencing homelessness or housing instability, which may include either of the following: (i) a past-due utility or rent notice or eviction notice; (ii) unsafe or unhealthy living conditions; or (iii) any other evidence of such risk, as determined by the program.
• Have a household income that is not more than 80 percent of the area median income.

Before applying, tenants may be required to provide some or all of the following information and documentation showing proof of loss of income due to COVID-19, which may include the following items:

• A letter of termination from tenant’s job
• Most recent pay stub with employer’s information
• Evidence that tenant has applied for unemployment benefits.
• Evidence that tenant’s unemployment benefits have expired, including unemployment benefits provided through the CARES Act.
• For self-employed tenants: tax records, income statements, or other evidence showing loss of income.
• Other items will also be considered, but not specified at this time.

Assistance With Applications

According to the State’s website, a list of organizations to assist both landlords and tenants with processing applications will soon be provided.

AAGLA is a non-profit association consisting of rental housing providers and real estate professionals in the Greater Los Angeles area. Our main goal is to provide the tools and resources needed to improve real estate management & operations to ultimately help our members provide safe housing and to ensure fair returns on their investments.