Member Update – State Budget

Gov. Newsom and the Legislature today announced an extension of the state’s eviction moratorium through September 30 and have agreed to use more than $5 billion in federal renter relief funds to reimburse 100% of unpaid back rent for tenants earning 80% or less of their area median income. The state’s current eviction moratorium was set to expire on June 30. More details on the new eviction rules, which can be voted on as soon as Monday, can be found below.

While some additional details on the budget continue to be released today, a final budget deal has not yet been announced, and more information on the budget’s affordable housing provisions is expected in upcoming trailer bills. We will provide updates on those elements of the budget early next week.

Eviction moratorium details

The state’s updated eviction moratorium is outlined in AB 832. Major provisions include:

• Extends current moratorium for all tenants through September 30, 2021
• Increases funding available for rent relief to $5.2 billion
• Covers 100% of back rent owed by residents earning 80% of area median income or below
• Starting in October 2021, when evictions can resume, and lasting through March 2022, the bill also puts into place a new court process that gives tenants an opportunity to apply for rental assistance before they face eviction.