Summary: SB 567 builds on existing law to better protect California’s low-income renters from unjust evictions and exorbitant rent increases. 

Background: The Tenant Protection Act (AB 1482, Chiu, Chapter 597, Statutes of 2019) delivered critical protections for some California renters. However, too many tenants remain unprotected, and loopholes in the current law have led to widespread abuses that leave many covered renters vulnerable to displacement or eviction even when they are in compliance with the terms of their lease. 

It’s common sense. Evictions cause homelessness. As inflation soars and state and local eviction protections enacted during the pandemic come to an end, the gaps in the Tenant Protection Act are impacting more and more renters who are facing significant rent increases and “no-fault” evictions. The Homelessness Prevention Act will provide critical renter safeguards to stop abuses and ensure that renters can stay in their homes.

The Bill: SB 567 improves the Tenant Protection Act and provides greater housing stability for more renter households by:

• Closing loopholes that allow for rampant abuse of the no-fault just causes for eviction.
• Providing mechanisms for accountability and enforcement.

Having Issues With Your Landlord?

Facing an Unfair Eviction or Huge Rent Increase? 

Want help fighting back? Contact us below!

What You Need to Know:

#1 Rent increases are capped at 5% plus the cost of inflation - in total around 7 or 8% this year. The exact rent cap depends on the regional Consumer Price Index (CPI) but in no case can a rent increase exceed 10%, even if inflation is high.

#2 After you’ve lived in your home for 1 year, landlords cannot evict you without a “just cause” - that means they can’t just arbitrarily push you out to make more money. They have to provide a reason - like failure to pay rent or vandalizing the property. Here are some examples of  “Just Causes” for eviction: 

• Failure to pay rent
• Continued violation of a part of the lease
• Doing significant damage to the property
• Using the building for illegal purposes
• If the landlord wants to move into the property. In this case, or in other "no fault" eviction cases, the tenant is due one month's rent as a relocation assistance payment.

#3 The law goes into effect on January 1st, 2020. But if you were given a rent increase above the rent cap between March 15th 2019 and January 1st 2020, your landlord is required to lower the increase to the rent cap standard no later than January 1, 2020.

#4  Some 8 Million renters in California who have NEVER had rent protections before will be protected by the law. However, not all units are covered. Without getting into the boring nitty gritty of it, here are some of the main exemptions you should know about: 

• Buildings less than 15 years old are not covered.  As buildings age, and cross the 15 year threshold, they will be covered  
• If you live in a single family home that IS NOT owned by a corporation, you are not covered, and IF your landlord has given you notice that the home is exempt.  
• If you live in a single family home that IS owned by a corporation, you ARE covered.
• If you live in a duplex and your landlord lives in one of the units, you ARE NOT covered.

#5 Do you live in a city that already has rent control? The Tenant Protection Act of 2019 plugs some loopholes in our local rent control ordinances. If you already have rent control this doesn’t change it! You get to keep the same good old renter protections you’ve already had.  

CHECK OUT WWW.TENANTPROTECTIONS.ORG TO CALCULATE ALLOWABLE RENT INCREASES AND LEARN MORE ABOUT YOUR RIGHTS!

For press inquiries or to find out more about the Coalition, please fill out your details below. You can also e-mail Francisco Dueñas directly at [email protected]. We strive to respond to inquiries in a timely fashion. You can become a part of Housing Now! by endorsing us here.

The Challenge

In September, AB 3088 established temporary renter protections that limit evictions based on unpaid rent and delay when some unpaid rent becomes collectable debt. These protections are set to mostly expire in February 2021.

Per a recent UCLA study, evictions have caused over 400,000 COVID infections and 10,000 deaths nationwide. According to Moody’s, 12 million American renters will owe an average of $6,000 in back rent by January. Two million California households have reported "little or no confidence" in their ability to pay January rent.

Millions of struggling renters will be unable to pay their full rent in February and many more will not be paying rent accrued in previous months, as they lack the income to do so. With the additional burden on small community-based property owners and their mortgages, our already unstable housing market risks total collapse under the weight of this economic & public health crisis, unless the government steps in to create stability. The National Low Income Housing Coalition estimates COVID evictions will cost California $7-16 billion if we do not act now.

A Three-Part, People-First Solution

We call on Governor Newsom and every member of the state legislature to commit to three policy goals:

1. Prohibit eviction and foreclosure for nonpayment of rent or mortgage accrued during a defined period of time during, and immediately following, the COVID-19 State of Emergency (the “COVID period”);
2. Eliminate debt for renters who were unable to pay rent during the COVID period and provide mortgage cancellation, modification, forbearance, or relief;
3. Compensate small landlords and non-profit housing operators who need assistance to mitigate the economic impact of COVID as necessary to ensure housing stability, with conditions sufficient to protect tenants and ensure safe and healthy housing.

The Legislation

California State Assembly Bills 15 & 16, sponsored by Asm. David Chiu (D-San Francisco), will extend and significantly improve AB 3088. 

AB 15, the Tenant Stabilization Act of 2021, will:

• Extend the time period prohibiting evictions for inability to pay rent in full through 2021 and expanding just-cause provisions for eviction.
• Curb predatory forms of rent debt collection in court, curb predatory rental repayment agreements, prohibit late fees, and minimize the negative effects of debt for tenants applying for new housing.
• Allow city governments to pass stronger local protections if they so choose.

AB 16, the Tenant, Small Landlord, and Affordable Housing Provider Stabilization Act of 2021, will address longer-term economic impacts:

• Unlock funding for rent and mortgage relief, protecting impacted renters from crippling, years-long debt
• Support longer-term eviction & homelessness prevention services during and beyond the recovery period
• Ensure small landlords & nonprofit affordable housers can stay afloat while keeping their tenants in place
• Prevent harassment and exploitation of tenants who are not yet able to repay back rent

AB 15 is an urgency bill, and must pass with a 2/3 majority in the Assembly and State Senate before January 31 to take effect immediately and prevent an eviction cliff in February. AB 16 is a spot bill, and needs a simple majority to pass in the coming months.

What is Assembly Bill 3088 - The COVID-19 Eviction Protections Act?

California Assembly Bill (AB) 3088, known as the Tenant, Homeowner, and Small Landlord Relief and Stabilization Act of 2020 (the Act),  creates eviction protections for tenants that have lost income due to the COVID-19 pandemic. Broadly speaking, for those that have lost income due to COVID, AB 3088 converts rent debt owed between March - September 2020 into consumer debt which your landlord can try to reclaim in small claims court but which cannot be the basis for an eviction. After September 1st 2020, tenants who have experienced financial hardship due to COVID need to pay at least 25% of their rent before January 31st 2021 in order to not be evicted. The remaining 75% of rent will also be converted to consumer debt. 

Landlords cannot file an eviction lawsuit for nonpayment of rent against tenants impacted by COVID-19 IF AND ONLY IF the tenant has returned a signed declaration of financial distress within 15 days of a notice to pay or quit.

For more information, read a summary of the bill in English, in Spanish, in Chinese, in Vietnamese, in Armenian, in Hmong or in Tagalog.

Declaration of COVID-19 Related Financial Distress

If you can’t pay your rent because of the COVID-19 pandemic, your landlord must give you a 15-day notice to pay rent or quit before filing an eviction lawsuit.

If you receive a 15-day notice, within 15 days you must give your landlord a signed declaration that says that you cannot pay rent because of COVID-19.

A declaration that complies with the law is available here.

Paying your Rent

If you owe rent that was due from March 1, 2020 - August 31, 2020: If you return the declaration to your landlord in time, you cannot be evicted for not paying this rent. 

If you owe that was due from September 1, 2020 - January 31, 2021. You will need to pay : pay 25% of the total rent owed by no later than January 31, 2021. The other 75% of rent is converted into consumer debt and the tenant can never be evicted for not paying it.  You will be required to resend the AB 3088 compliant declaration (link to declaration) each time your landlord serves you a new 15-day notice. 

If you receive an eviction notice or summons for an eviction lawsuit, or notice to vacate seek legal help immediately. 

Legal Resources

You can find legal services organizations in your area here: https://landlordtenant.dre.ca.gov/resources/tenant.html 

Watch the Video Explainer

Learn the basics of AB 3088 by watching this video by our allied organization Legal Services of Northern California: