Hello everybody, and WELCOME to a whole lot of NEW subscribers!
I decided I’m going to make this an email chain, so if you are new, please read the April 9th email below first.
As for today, APRIL 13th, I hope you all had a great Easter weekend… or as good as one can make it.
I always try to look at the bright side of things, and hopefully we all have had a little more contact with our family and friends… and that as they say is “Priceless”!
Now, getting to LANDLORD INFO!
First off, as you should know, WE HAD TO PAY OUR PROPERTY TAXES BY APRIL 10th to avoid being delinquent.
NOTE: This is the deadline for the second installment of the 2019-20 Fiscal Year, which was “Due” on February 1st, so you may have already paid it.
(And of course, it may have been paid by your lender.)
There was quite a lot of debate, especially on the County Level, and I heard that Riverside County wanted to delay the late deadline, but unfortunately while property taxes are collected by the County that the property is located in, the policies are governed by THE STATE. That means that our state legislators would have had to pass something… heck they can’t even stop the Bullet Train to Modesto, so we can’t expect them to do something we really need like this, right? (Sorry I had to get the Bullet Train dig in there.)
Second, here are a couple of good websites/articles I found, although I noticed that 98% of the articles focus on the problems of renters and barely mention landlords, if at all:
- Everybody should bookmark this one – https://covid19.ca.gov/
- This is the text of the CARES ACT … great bedtime reading, as it will put you to sleep! https://www.congress.gov/bill/116th-congress/house-bill/748
- Eviction info (Riverside Co mentioned about 4 paragraphs in) https://calmatters.org/housing/2020/04/california-coronavirus-evictions-moratorium-newsom/
- General article – https://www.vcstar.com/story/news/local/2020/04/11/housing-california-eviction-moratoriums-missed-rent-payments-coronavirus/2946138001/
- https://www.marketwatch.com/story/they-could-face-housing-situations-that-spiral-out-of-control-more-than-half-of-renters-say-they-lost-their-jobs-due-to-covid-19-2020-04-09?mod=realtor
- FANNIE MAE
- Freddie Mac –
- CFPB – https://www.consumerfinance.gov/about-us/blog/guide-coronavirusmortgage-relief-options/
Third, now here’s the juicy stuff you won’t get anywhere else:
- All renters in the state are entitled to a delay of an eviction through May 31 if they can’t pay rent because of financial or medical circumstances caused by the coronavirus. To qualify, renters must have lost their job or hours at work, or have had to take care of children whose schools are closed or family members with COVID-19. Tenants also must notify their landlords in writing no later than seven days after their rent is due — or by April 8 or May 8 — if they’re unable to pay. Come June 1, affected tenants can still be evicted if they didn’t pay rent in April or May.
- The good news was, you can get MORTGAGE PROTECTION from the Federal CARES ACT or via the various lenders VOLUNTEERING to participate, as I explained on April 9th below.
- Now here is more detail on the bad news for Landlords, regarding the Federal Eviction Ban:
Coronavirus Aid, Relief, and Economic Security (CARES) Act
Eviction Moratorium
SEC. 4024. TEMPORARY MORATORIUM ON EVICTION FILINGS.
• (a) (1) “Covered dwelling” means a dwelling that—(A) is occupied by a tenant—(i) pursuant to a residential lease; or (ii)
without a lease or with a lease terminable under State law; and (B) is on or in a covered property.
(2) “Covered property” is any property that… has a Federally backed (i) mortgage loan; or (ii) multifamily mortgage loan.
…
(4) [5] “Federally backed mortgage loan” and [“Federally backed multifamily mortgage loan”] includes any loan (other
than temporary financing)
• (A) is secured by a first or subordinate lien on residential real property (including individual units of condominiums and
cooperatives) designed principally for the occupancy of from 1 to 4 [5 or more] families, including any such secured loan, the
proceeds of which are used to prepay or pay off an existing loan secured by the same property; and
• (B) is made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way, by any officer or agency of the
Federal Government or under or in connection with a housing or urban development program administered by the Secretary of
Housing and Urban Development or a housing or related program administered by any other such officer or agency, or is
purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.
• (b) MORATORIUM.—During the 120-day period beginning on the date of enactment of this Act [3/27/20 – 7/25/20], the
lessor of a covered dwelling may not—
• (1) make, or cause to be made, any filing with the court of jurisdiction to initiate a legal action to recover possession of the covered
dwelling from the tenant for nonpayment of rent or other fees or charges; or
• (2) charge fees, penalties, or other charges to the tenant related to such nonpayment of rent.
• (c) NOTICE.—The lessor of a covered dwelling unit—
• (1) may not require the tenant to vacate the covered dwelling unit before the date that is 30 days after the date on which the lessor
provides the tenant with a notice to vacate; and
• (2) may not issue a notice to vacate under paragraph (1) until after the expiration of the period described in subsection (b).
Fourth, here is the federal CISA Advisory that makes “REAL ESTATE SERVICES” an “ESSENTIAL” Service, which includes property managers and repairmen. If you recall, Real Estate was NOT COVERED during the original California Executive Order, but the Federal Government superseded that error (thank goodness!)
Advisory Memorandum on Identification of Essential Services
frastructure_Workforce_Version_2.0_Updated.pdf
OTHER COMMUNITY- OR GOVERNMENT-BASED
OPERATIONS AND ESSENTIAL FUNCTIONS
• Residential and commercial real estate services, including
settlement services.
• Workers supporting essential maintenance,
manufacturing, design, operation, inspection, security, and
construction for essential products, services, and supply
chain and COVID 19 relief efforts.
COMMERCIAL FACILITIES
• Workers in hardware and building materials stores, consumer
electronics, technology and appliances retail, and related
merchant wholesalers and distributors – with reduced staff to
ensure continued operations.
• Workers distributing, servicing, repairing, installing residential
and commercial HVAC systems, boilers, furnaces and other
heating, cooling, refrigeration, and ventilation equipment
Fifth, here is important text from that CALIFORNIA EXECUTIVE ORDER that is actually GOOD NEWS FOR LANDLORDS – the Eviction Ban is ONLY based on Non-Payment of Rent.
And, the Tenant will still need to pay you back all the missed rent.
California Executive Order (03/27/20)
Halting evictions through May 31 (residences)
IT IS HEREBY ORDERED THAT:
1) The deadline specified in Code of
Civil Procedure section 1167 shall be extended for a period of 60
days for any tenant who is served, while this Order is in effect, with
a complaint that seeks to evict the tenant from a residence or
dwelling unit for nonpayment of rent and who satisfies all of the
following requirements: a. Prior to the date of this Order, the tenant
paid rent due to the landlord pursuant to an agreement. b. The
tenant notifies the landlord in writing before the rent is due, or
within a reasonable period of time afterwards not to exceed 7 days,
that the tenant needs to delay all or some payment of rent because
of an inability to pay the full amount due to reasons related to
COVID-19, including but not limited to the following: (i) The tenant
was unavailable to work because the tenant was sick with a
suspected or confirmed case of COVID-19 or caring for a household
or family member who was sick with a suspected or confirmed case
of COVID-19; (ii) The tenant experienced a lay-off, loss of hours, or
other income reduction resulting from COVID-19, the state of
emergency, or related government response; or (iii) The tenant
needed to miss work to care for a child whose school was closed in
response to COVID-19. c.
The tenant retains verifiable documentation, such as termination
notices, payroll checks, pay stubs, bank statements, medical bills, or
signed letters or statements from an employer or supervisor explaining
the tenant’s changed financial circumstances, to support the tenant’s
assertion of an inability to pay. This documentation may be provided to
the landlord no later than the time upon payment of back-due rent.
2) No writ may be enforced while this Order is in effect to evict a tenant
from a residence or dwelling unit for nonpayment of rent who satisfies
the requirements of subparagraphs (a)-(c) of paragraph 1. 3) The
protections in paragraphs 1 and 2 shall be in effect through May 31,
2020. Nothing in this Order shall prevent a tenant who is able to pay all
or some of the rent due from paying that rent in a timely manner or
relieve a tenant of liability for unpaid rent. Nothing in this Order shall in
any way restrict state or local governmental authority to order any
quarantine, isolation, or other public health measure that may compel
an individual to remain physically present in a particular residential
property. IT IS FURTHER ORDERED that this Order supersedes Executive
Order N-28-20 to the extent that there is any conflict with that Order.
Sixth, I can picture some of you landlords jumping around and (air)-high-fiving your… (dog? Cat? Hopefully a human) … but the problem regarding evictions, is that the entire Unlawful Detainer (Eviction) Court System is “on hold” for new cases. You can’t begin the eviction case without the summons. Read the following, plus my April 9th comments at the bottom of this email chain.
- March 20, 2020 – Chief Justice Tani Cantil-Sakauye issued advisory guidance for superior courts to suspend
- most civil trials and hearings for at least 60 days
- March 23, 2020 – Chief Justice suspends all jury trials for a period of 60 days, and extended by 60 days the
- time period for the holding of a civil trial;
- March 28, 2020 – Judicial Council, the policy making body of the courts, meets in emergency session and
- authorizes and supports extending statutory deadlines for criminal and civil proceedings
- March 30, 2020 – Chief Justice issues order confirming 60-day suspension of all jury trials
- April 6, 2020 – Judicial Council adopts new temporary rules staying evictions and foreclosures >>>
Judicial Council of California (policy making body of California Courts)
(https://jcc.legistar.com/View.ashx?M=F&ID=8234474&GUID=79611543-6A40-465C-8B8B-D324F5CAE349)
Emergency Rules 1 of the California Rules of Court, adopted effective April 6, 2020,
• Notwithstanding any other law, including Code of Civil Procedure sections 1166, 1167, 1169, and 1170.5, this rule
applies to all actions for unlawful detainer.
• A court may not issue a summons on a complaint for unlawful detainer unless the court finds, in its discretion and
on the record, that the action is necessary to protect public health and safety.
• A court may not enter a default or a default judgment for restitution in an unlawful detainer action for failure of
defendant to appear unless the court finds both of the following: (1) The action is necessary to protect public
health and safety; and (2) The defendant has not appeared in the action within the time provided by law,
including by any applicable executive order.
• If a defendant has appeared in the action, the court may not set a trial date earlier than 60 days after a request
for trial is made unless the court finds that an earlier trial date is necessary to protect public health and safety.
Any trial set in an unlawful detainer proceeding as of April 6, 2020 must be continued at least 60 days from the
initial date of trial.
• This rule will remain in effect until 90 days after the Governor declares that the state of emergency related to the
COVID-19 pandemic is lifted, or until amended or repealed by the Judicial Council.
• Governor Stay at home Order – until further notice. Eviction moratorium expires May 31.
Seventh and final, if you have a Property Manager or have a Realtor, they have access to new C.A.R. Forms for:
- NOTICE TO TENANT OF ABILITY TO PAY RENT DURING CORONAVIRUS PANDEMIC (Form NTAP) – you’re “opening salvo” to your tenant is who is not paying.
- CORONAVIRUS PROPERTY ENTRY ADVISORY AND DECLARATION (Form PLEAD) – everybody signs off on letting you (or repairman or agent) into the property
- CONRONA VIRUS RENT PAYMENT DELAY AND REPAYMENT AGREEMENT (Form RPD) – now this is the cool one, it gets a Repayment Plan down in a signed writing by both sides. I will attach a sample to this email, if you’re not a CAR Member, then you can use it to give you ideas for your own Agreement.
OK folks, that’s about it for me today, all this makes my head hurt. Take two Aspirin and I’ll talk to you next time! As always, I wish you the best, and keep in mind we WILL get through this.
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