AFFORDABLE HOUSING, RENTAL ASSISTANCE SURFACE AS KEY ISSUES CID bills moving through session address rental restrictions and short-term rentals.
T
he Legislature continues to do its work but in a much more truncated
fashion. After losing months of session, they’ve had to do their business in a very condensed timeframe. Even with a significant downsizing of bills, hearings are being held every
By Jennifer Wada, Esq.
SB 1410 (Caballero and Bradford) would
As for CID-specific legislation, one bill that is
provide tax credits to property owners as
still moving through the legislative session
compensation for not evicting tenants who
is AB 3182 (Ting). This bill would restrict an
do not pay their full rent during the COVID-19
association’s ability to impose rental restrictions
state of emergency. It would also require these
of more than 25% of the separate interests
tenants to repay the state for this deferred
in the CID. It clarifies that ADUs and JADUs
unpaid rent, unless they qualify for income-
are not counted toward this cap. This bill
based exemptions at the time of repayment.
originally prohibited any rental restriction and CACM worked alongside CAI to eliminate this
AB 1436 (Chiu) would protect tenants unable
outright prohibition. Despite the 25% cap, the
to pay their rent due to COVID-19 from
bill does authorize an HOA to adopt a higher
evictions, as well as homeowners struggling to
percentage of rental restrictions in order to help
make their mortgages from foreclosure. After
buyers qualify for loans insured by the FHA or
failing passage in the Assembly, the contents
guaranteed by the Department of Veterans
legislators are remote or proxy
of AB 2501 (written about in the last update)
Affairs, the Federal Mortgage Association, or
voting.
have been amended into this bill and would
the Federal Home Mortgage Loan Corporation.
require a mortgage servicer, mortgagee,
It also allows a higher percentage to facilitate
One of the most pressing issues
trustee, beneficiary or authorized agent
loan financing or to facilitate the acquisition
at the end of this session is the
from continuing any judicial or nonjudicial
and maintenance of insurance and industry-
battle over affordable housing
foreclosure action, recording a notice of default
recognized HOA rates. AB 3182 does have an
and rental assistance – issues
or taking any action to evict a person following
important silver lining: it specifically authorizes
made even more pronounced
a foreclosure during the COVID-19 emergency
CIDs to prohibit short-term rentals of 30 days
by the pandemic. Warning
and 180 days thereafter.
or less. In the Senate Housing committee,
day, including weekends, and lasting hours on end. Witness testimony is being taken over the phone and, in some cases, even
of a potential “homelessness Armageddon,” if the current eviction moratorium isn’t extended and loopholes in the law aren’t plugged, lawmakers are struggling to pass an affordable housing package before the end of session. This package focuses on eviction protections and financial assistance for affordable housing providers, but also considers ways to prevent another foreclosure crisis. Some of the bills included in this package are:
the Chair recommended an amendment SB 1079 (Skinner) would forbid a foreclosure
that would clarify that any longer terms in
trustee from bundling properties for sale at
governing documents would be deemed at
a foreclosure auction, instead requiring that
30 days in order to avoid associations feeling
each property be bid on separately. The only
like they needed to amend their governing
exception to this restriction is if the deed
documents. This amendment is not in the bill
of trust or mortgage requires otherwise.
yet but is in the process of being drafted.
According to the author, the point of this bill is to prevent corporate takeovers of housing that
Speaking of short-term rentals, SB 1049
are devastating for low- and moderate-income
(Glazer) would increase fines that cities are
families. She also states that when these
allowed to impose on short-term rental hosts
investors then cash out, many corporations
who violate local property laws. It would
leave homes vacant and in disrepair. The bill is
authorize imposition of fines up to $5,000 for a
intended to provide safeguards against another
violation of a short-term ordinance. The author
foreclosure crisis as many people are falling
states that their recent proliferation during
behind on mortgage payments due to the
the pandemic has allowed bad actors to use
COVID-19 induced recession.
these rentals for large parties and a shortContinues on page 24 cacm.org | Vision Fall 2020
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