A proposal setting up an assistance program for tenants unable to pay rent due to COVID-19 is being supported by the California Chamber of Commerce if a few changes are made.
SB 1410 (Caballero; D-Salinas) was sent to the Assembly Appropriations Committee Suspense File on August 18 pending a review of the bill’s fiscal impacts.
SB 1410 creates a tenant-owner COVID-19 eviction relief agreement, restricts rental property owners from evicting tenants for unpaid rent accrued during the state of emergency, and allows a tax credit to rental property owners that defer rent for tenants who cannot pay their rent due to COVID-19.
This approach attempts to protect the most vulnerable tenants without sacrificing mom and pop rental property owners who are not able to financially absorb months of no rent without financial assistance.
AB 1410 spreads the interest-free payments from tenants and the landlords’ corresponding tax credits over a 10-year period beginning in 2024 in order to minimize any immediate impacts to the state’s revenues.