How the tenant relief act affects your California rental property
AB 3088: How the Tenant Relief Act Affects Your California Rental Property
What is AB 3088?
AB 3088 limits a landlord’s ability to evict a tenant for non-payment of rent due from March 1, 2020 to January 31, 2021, if the tenant has experienced a financial hardship related to COVID-19. It bans evictions for tenants who were unable to pay their rent between March 1 and August 31 due to financial hardship caused by the pandemic. It also bans evictions for those tenants through January 31, but only if the tenants pay at least 25% of their rent owed during that time. This can be paid monthly or all at once prior to January 31. You can read the full bill here.
How does the new law work?
Protected Time Period
Transition time period
Just Cause Eviction Implications
The Rent Relief Law temporarily requires all residential landlords in California to comply with the just cause eviction procedures of The Tenant Protection Act of 2019 (also known as AB 1482) in order to find a tenant guilty of unlawful detainer on or after March 1, 2020 and before February 1, 2021. This is the case even when the property would otherwise be exempt under AB 1482. However, an owner of a single-family property or condo can terminate a tenancy when they are selling the property to a buyer who will take occupancy. For issues other than nonpayment of rent, courts began hearing cases on September 2nd, 2020.
Differences Between the CDC Eviction Moratorium & AB 3088
CDC Eviction Moratorium Implications
- Under both ordinances, the tenant is required to return the declaration prior to any protections taking place. Once the declaration is returned, under AB 3088 the tenant is protected until January 31 so long as they pay 25% of the rent. Under the CDC moratorium, they are only protected until December 31, but are not required to pay any rent.
- Under the CDC order tenants only need to return the declaration once; under AB 3088 landlords can require a monthly declaration. Additionally, they must provide a copy of the AB 3088 declaration to the tenant along with the 15 day notice. The CDC moratorium does not require this.
- The AB 3088 declaration must be returned to the landlord within 15 days; the CDC moratorium can be returned at any time–even up to the lockout.
- The CDC moratorium does not allow for any “no fault” evictions until after December 31, 2020. The only allowed reasons are as follows: breach of lease, criminal activity, behavior that threatens the health or safety of others property damage, or violation of building codes or health ordinances. Under AB 3088, there are several “no fault” reasons that can evict a tenant that are not allowed under the CDC order (removing the unit from the rental market, the owner of the property moving in, etc.) We caution landlords to evict anyone for a reason outside of the CDC provisions.
- AB 3088 allows a landlord to ask for proof of financial hardship from high income tenants. The CDC moratorium does not.
- Loss of income caused by the COVID-19 pandemic.
- Increased out-of-pocket expenses directly related to performing essential work during the COVID-19 pandemic.
- Increased expenses directly related to health impacts of the COVID-19 pandemic.
- Childcare responsibilities or responsibilities to care for an elderly, disabled, or sick family member directly related to the COVID-19 pandemic that limit the tenant’s ability to earn income.
- Increased costs for childcare or attending to an elderly, disabled, or sick family member directly related to the COVID-19 pandemic.
- Other circumstances related to the COVID-19 pandemic that have reduced tenant’s income or increased their expenses.