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  • Alden Pacific Investments

SB-91 Replaces AB 3088, Promises Financial Relief for Landlords Hard-Hit by COVID-19

Updated: Jul 20, 2021

California’s real estate industry has been hard-hit by COVID-19. The state recently passed SB-91 replacing the eviction moratorium AB-3088 that was set to expire January 31st. SB-91 extends the eviction moratorium through June 30th, 2021 and attempts to help struggling property owners by allocating federal funds to COVID impacted property owners.

How It Works

SB-91 immediately replaces the previous legislation, AB 3088. Under the previous bill, tenants who could prove financial hardship due to COVID-19 were required to pay back just 25% of the rent accrued beginning September 1, 2020, and ending January 31, 2021. SB-91 extends that to June 30, 2021, but renters are still required to pay the 25% unless the landlord accepts SB-91 funds. Landlords will receive 80% of the back rent due from tenants affected by COVID-19. To qualify, landlords will need to provide several things, including:

  • The past-due rent was owed by a tenant affected by the pandemic.

  • It only applies to tenants who earned less than 80% of the area’s median income (AMI) either in 2020 or at the time of rental application

  • If the landlord accepts the 80% payment of back rent, they must immediately forgive the 25% renters are required to pay by June 30.

  • Landlords must provide a “specific informational notice” to any tenants behind on their rent as of February 1, 2020, and have until February 28, 2021, to do so.

When SB-91 Does Not Help

While the rules laid out in SB-91 are designed to help both landlords and tenants, there are some situations in which these funds will not help.

  • If the tenant earns over 80% of the area’s median income, the situation does not qualify for financial relief through SB-91.

  • If the tenant has not communicated with the landlord concerning the reason for their lack of payment or received/provided notice, SB-91 does not apply.

If you have any questions regarding SB-91 and how it can affect your portfolio, don't hesitate to reach out.

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