Repayment period extended to 12 months following expiration of Eviction Moratorium
San José, CA. – On Tuesday, San Jose City Council voted unanimously to approve Mayor Liccardo’s proposal to extend both the eviction moratorium and the repayment period for unpaid rent accrued during the moratorium, enacted during the COVID-19 pandemic.The City of San Jose was the first to move forward with a moratorium on evictions for non-payment of rent for residents who demonstrated a lack of income due to COVID-19. The eviction moratorium does not suspend the obligation of rent, but prohibits eviction of renters who are unable to pay their rent for as long as the eviction moratorium is in effect.
“Ensuring that residents have safe housing during this pandemic has been one of the highest priorities of the council since the beginning of this crisis,” said Mayor Liccardo. “I am grateful to our community partners like the California Apartment Association who continue to work with us for viable solutions that work for owners and renters.”
Mayor Liccardo’s recommendation extended the repayment period to 12 months following the expiration of the eviction moratorium. Without this extension, tenants whose income had decreased or disappeared due to the COVID-19 pandemic had until December 31 to pay 100% of the past due accrued back rent, an impossibility for many who might have lost their jobs.
The proposal came as a result of extensive conversations with the California Apartment Association (CAA), who shared the goal of developing a realistic deadline and repayment period for back rent.
“CAA applauds Mayor Liccardo’s leadership to create a sense of stability for the rental housing market that also recognizes the challenging regulatory environment facing rental housing providers,” said Anil Babbar, Vice President of Public Affairs, CAA. “This plan creates a pathway for residents to become current on their rent and provides property owners with the reassurance they can meet their financial obligations to pay the mortgages, tax bills, vendors, and employees. CAA thanks the entire City Council for supporting the Mayor’s proposal. Their unanimous vote is a testament to our community coming together during this difficult time.”
With the Council action late Tuesday night, renters now need only pay back 50% of the past due back rent within six months of the end of the eviction moratorium. The eviction moratorium was also extended another month to June 30, 2020. If the moratorium is not extended again, renters will have until January 31, 2021 to pay back half of owed back rent, and the other half by June 30, 2021.
The City Council will also consider as part of the Budget process reducing City fees for landlords from 17% to 37% depending on the fee.
“This measure mitigates the strain on our neighbors who are most vulnerable to the economic impact of COVID-19, giving folks a better chance to meet the challenging times in the months ahead,” Mayor Liccardo added.