SB 847 COVID 19 Relief: Tenancy: Grant Program
| Author: |
Melissa Hurtado (D-014) |
| Title: |
COVID 19 Relief: Tenancy: Grant Program |
| Fiscal Committee: |
yes |
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| Urgency Clause: |
no |
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| Introduced: |
01/13/2022 |
| Last Amend: |
03/28/2022 |
| Disposition: |
Pending |
| Committee: |
Senate Judiciary Committee |
| Hearing: |
04/19/2022 1:30 pm, 1021 O Street, Room 1200 |
| Summary: |
Creates a grant program under the administration of the department and would require the department to award a program grant, as defined, to a qualified applicant who submits a complete application, as defined, on a first come, first served basis. Requires the program to provide grants to all tier one applicants, as defined, before providing grants to other applicants. Relates to qualified applicant. Establishes a fund. |
| Status: |
| 03/28/2022 |
In SENATE. Read second time and amended. Re-referred to Committee on JUDICIARY. |
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According to the bill sponsor, the California Apartment Association, this bill aims to cover rental arrears for renters who accrued COVID-19-related rental debt but were rejected by the Emergency Rental Assistance Program (ERAP).
If passed, SB 847 will eliminate a renter's rental debt and ensure that rental housing providers are compensated for the housing they provided during the pandemic. It will close a loophole that causes applicants to be rejected even when they can demonstrate a need. Most importantly, the bill will remove the risk for some rental properties from getting foreclosed or forced out of the rental market --- leaving more renters without a home.
The federal Emergency Rental Assistance Program (ERAP) has strict income eligibility requirements that limit applicants to 80% AMI or less. However, renters in all income levels and demographics have applied for ERAP relief since the pandemic put everyone in financial distress. Applicants over 80% AMI are disqualified leaving no safety net or resource to help cover the rental debt they accrued at no fault of their own. This has resulted in many rental housing owners having no mechanism to recoup the costs of the services they have provided and forced some to backfill the debt using their own retirement funds and/or through personal loans.
SB 847 will give a tool for both parties to be made whole. It will be a grant program administered by the State that will be similar to the federally-funded ERAP but with more flexibility to ensure that more renters and homeowners are covered.
In addition to advocacy priorities of "COVID-19 Response and Economic Recovery," and "Housing and Homelessness," the County's adopted 2021-22 State Platform includes the following related policies/principles:
- SUPPORT the continuation and expansion of funding for fair and equitable affordable housing, homelessness assistance and prevention programs, and strategic local and regional responses to homelessness that promote transparency, equity and data informed decision-making and enhance access to resources that support the County’s compliance with federal and state anti-homelessness and anti-poverty initiatives and requirements.
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- SUPPORT increasing and maintaining affordable housing stock and housing stability by way of supporting funding, policy, or regulations that promote fair and equitable housing for the most vulnerable low, very low, and extremely low-income households, including the acquisition, production and preservation of various housing types and the protection of stable housing for vulnerable persons experiencing homelessness.
It is worth noting that the California legislature passed, and Acting Governor Kounalakis signed, AB 2179 (Grayson and Wicks), which extended rental protections through June 30, 2022 for those who have faced financial hardships during the pandemic. California’s $5.5 billion COVID-19 Rent Relief program is the largest statewide renter assistance program in the country and covers 100 percent of past-due rent payments for qualified low-income Californians. The state program has to date assisted more than 220,000 low-income households, with thousands of additional households assisted by local rent relief programs. Under the state program, tenants can access rental funds directly if their landlord chooses not to participate, and landlords can receive compensation even if their otherwise income-qualified tenants have already vacated a unit. Additional program information is available at the Housing Is Key website.
The fact sheet for SB 847 is Attachment A.
A sample support letter is Attachment B.
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