The state of California will invest $ 5.2 billion dollars in covering the back income of low-income people who were affected by the pandemic and thus avoid the dreaded evictions, and Governor Gavin Newsom announced this Friday. The eviction moratorium was scheduled to expire next week, but Newsom struck a last-minute deal with leaders of the state legislature to prevent a possible mass eviction. The state government said it is the largest and most comprehensive rental assistance program in the United States.
The extension also includes 100% back payments for services such as electricity and water for low-income people who were affected by the pandemic, and credit and rent records will be cleaned up for impacted tenants.“California is returning from the pandemic with a roar, but the economic impacts of COVID-19 continue to disproportionately hit many low-income Californians, renters, and smallholders alike,” said Newsom, who is doing his best to avoid being removed by recall election.
He further added, saying that’s why he is grateful for today’s news from the Legislature, which seeks to protect all the low-income tenants with a longer moratorium on evictions by agreeing to pay their back rent and services. He again thanked the larger and more comprehensive package of assistance with the income of the nation, which he was eager to sign into law as soon as it reaches him.
The moratorium, to which undocumented immigrants are entitled, was initially approved in January with $ 2.6 billion in assistance. It was then approved to prohibit evictions until June 30 if they paid at least 25% of their rent. Surprisingly few applications were received, and this resulted in a lot of unclaimed rental support money.
The Los Angeles Times indicated that according to a study by Policy Link and the USC Equity Research Institute, there are about 758,000 households in the state with delinquent rents in California and that the average debt is $ 4,700. Evictions for non-payment of rent could resume on October 1, but people who earned less than 80% of the median income in their respective area and were financially affected by the pandemic would have another six months to apply for the assistance funds. California used a previous allocation of federal money in order to begin its rental assistance at the beginning of 2021. Russ Heimerich, the spokesman for the California Business, Consumer Services, and Housing Agency, said that Thursday’s report denotes that around 54,520 tenants went on request $616.4 million in assistance. However, the state has only paid a sum of $61.6 million for the ones who have made prior requests.