How California Is Dealing with the Rental Crisis

CalMatters (Feb 16) has an article up regarding those in California who have been unable to pay their rent. Currently, those behind on their rent have until June 30th to catch up before facing eviction (it was previously January 31st). The article focuses on an unemployed tech worker who lived in a $5,400 per month apartment with a friend. The two of them now owe $43,804. Interestingly, he was able to move into a new apartment with his "partner" (I'm assuming this means another individual other than his friend) and they're only able to pay 25% of their rent. Part of me is like, "Why did someone rent an apartment to them in the first place?" 

JDSUPRA (Feb 11) has some details about how evictions are to work in California:

Additionally, no tenant can be evicted after June 30, 2021, if they pay 25% of the rent owed from September 2020 through June 30, 2021, either monthly or in a lump sum before the final day it is due and attests they face a financial hardship due to the pandemic. Landlords can recoup the remaining balance owed after June 30, 2021, but may not use nonpayment of rent as a basis for eviction.

So I guess this means that if someone's rent is $1,000 per month they would owe $10,000 for September through June rent. Of this, they would need to pay a minimum of 25% or $2,500 to avoid eviction on June 30th. And then from July onwards, they have to pay the $1,000 per month rent. (I know, no one pays $1,000 per month in rent, but it just makes for easy calculations.) The above states that the remaining balance owned after June 30th can be recouped, but the below adds some additional detail that indicates that if a landowner accepts a government bailout then debts are forgiven.

. . . Separately, under Senate Bill 91, landlords have the option to participate in a program whereby the state will use federal funds to cover 80% of a qualifying tenant’s unpaid rent from April 2020 through March 2021. All payments would be made to landlords directly. In order to be eligible, the landlord must forgive the remaining balance of owed rent and must not pursue an eviction. This would include rent, fees, interest or any other financial obligation under the lease. If federal funds remain available following March 2021, the state will continue to pay 25% of future rent for a period up to three months.

CalMatters adds the fact that Senate Bill 91 only applies to "tenants who made under 80% of their area median income in 2020 are eligible for relief."

I'd assume that most people who can't pay their rent likely fall under the 80% of median income at this point in time.

I tried to write out some calculations on how this might work, but it got too difficult to to follow. 

One added point from CalMatters is that if a landlord rejects this offer of 80%, the state will pay 25% and the tenant / landlord will need to figure out how the tenant would repay the remaining 75%.