AB 1436

Update: Public Advocates continues to work on preserving the moratorium on evictions in California that is currently scheduled to expire on June 30, 2021. In August of 2020 the Governor signed AB 3088, a law that protected renters with COVID-19 related economic impacts from evictions related to nonpayment of rent through the beginning of 2021. We worked on implementation of that law, and have continued to fight for renter protections into 2021. 

About AB 1436

Background

Housing justice organizations have been advocating for, and Public Advocates and others sponsored  AB 1436—legislation that prevents evictions and provides security to renters who are enduring a global pandemic and the worst economic downturn in modern history. Authored by Assemblymember David Chiu, the bill will keep millions of renters housed, especially Black and Brown tenants who have been disproportionately hit by COVID-19 and are more likely to be rent-burdened than any other community. The bill does the following for tenants, homeowners, and small landlords:

Tenants:

• Protects renters with COVID-19 financial impacts from eviction due to unpaid rent from the beginning of the COVID-19 emergency declaration on March 4, 2020 until the earlier of: April 1, 2021 or 90 days after the COVID-19 emergency ends;
• Holds tenants accountable to resume regular rent payments no later than April 2, 2021 and allows landlords to pursue normal evictions for any future missed rent payments;
• Gives tenants 12 months to repay back rent and preserves the ability of landlords to pursue unpaid rent through civil actions, as is currently the case for unpaid rent that is more than a year old;

Homeowners and Small Landlords:

• Provides property owners with COVID-19 financial impacts with up to 12 months of mortgage forbearance for residential properties (i.e., 1-4 unit dwellings) and up to 180 days for multi-family properties (i.e., those with 5 or more units)
• Allows for mortgage forbearance requests to be submitted until the earlier of: April 1, 2021 or 90 days after the COVID-19 emergency ends
• Requires mortgage servicers to work with borrowers on options after forbearance to avoid lump sum repayments for residential properties (1-4 unit properties)

The bill does not cancel or forgive any amount owed by renters or homeowners; rather, it gives extra time for those with COVID-19 impacts to make payments. AB 1436 provides a path for transitioning out of the COVID-19 emergency in a way that balances renter and homeowner protections with the ability of landlords and mortgage holders to recover what is owed to them.