California landlords group sues state over eviction moratorium extension

Group representing 19,000 landlords claims moratorium “ignores” burden on rental property owners

Los Angeles /
Aug.August 06, 2021 09:19 AM
California Rental Housing Association President Christine Kevane LaMarca and California Governor Gavin Newsom (Getty, Facebook via LaMarca)
California Rental Housing Association President Christine Kevane LaMarca and California Governor Gavin Newsom (Getty, Facebook via LaMarca)

A major landlords association in California is fighting the state’s extended eviction moratorium, claiming it “ignores” the burdens of small landlords.

The California Rental Housing Association, which represents more than 19,000 landlords, filed a lawsuit against the state of California over its third extension of the eviction moratorium, now set to expire at the end of September, according to a complaint filed in federal court in Sacramento.

California’s recent moratorium extension, signed in June, covers tenants who pay at least 25 percent of what they owe by the end of September.

The group alleges the extension has allowed “nonpaying [but] financially capable” tenants to “evade the obligation to pay,” according to the complaint.

In turn, owners of rental properties “will never recover the unpaid rents” that have accumulated since the state’s first moratorium in June 2020, the group said.

Under the state’s extension in June — AB 832 — California will cover 100 percent of back rent for low-income residents. Landlords will also be allowed to pursue new eviction cases against renters in October, unless tenants get approval to receive this rental assistance.

The group also claimed the moratorium has “inflicted untold mental and emotional injury on owners.”

“Small and medium rental housing providers rely on rental income to pay their mortgages and maintenance expenses, while supporting their own families,” Christine Kevane LaMarca, the president of CalRHA, said, adding the lawsuit is the group’s only option to allow landlords to enforce rental contracts.

The association has asked the court to declare AB 832 is unconstitutional and to block the state from enforcing it.






    Related Articles

    arrow_forward_ios
    Treehouse co-founders Joe Green and Prophet Walker and with 4421 S. Crenshaw Boulevard (LinkedIn via Walker, Warcus & Millichap, WikiMedia / Tony Maesto)
    Co-living startup Treehouse plans second complex in Los Angeles
    Co-living startup Treehouse plans second complex in Los Angeles
    A construction site in Century City (Getty)
    California launches $1.8B fund for stalled affordable housing projects
    California launches $1.8B fund for stalled affordable housing projects
    Two pending California housing laws are controversial. Will they be consequential?
    Newsom enacts 2 controversial measures to boost housing. Will they be consequential?
    Newsom enacts 2 controversial measures to boost housing. Will they be consequential?
    A sign posted outside of a Los Angeles deli (Getty)
    LA County will require vaccinations to enter bars, restaurants, businesses
    LA County will require vaccinations to enter bars, restaurants, businesses
    Gov. Gavin Newsom (Getty)
    California Gov. Newsom wins recall election; homeless, housing crises loom
    California Gov. Newsom wins recall election; homeless, housing crises loom
    The second quarter was the third straight of rising asking rents (Unsplash / Christian Gabele)
    Rents rise in Los Angeles as renters scoop up apartments
    Rents rise in Los Angeles as renters scoop up apartments
    Fairfield Residential CEO Greg Pinkalla and Madison at Town Center (Fairfield, Marcus and Millichap)
    Apartment giant Fairfield Residential pays $62M for Valencia complex
    Apartment giant Fairfield Residential pays $62M for Valencia complex
    The Bruce family built the resort for Black families who were barred from other beaches in the early 1900s. (Getty)
    State likely to return Manhattan Beach land to descendants of Black pioneers
    State likely to return Manhattan Beach land to descendants of Black pioneers
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...