Could the financial struggle of rental housing owners in California soon be over?
Thanks to a recently announced plan by Governor Gavin Newsom, the answer may be yes.
The Governor hopes to end the financial struggle of rental property owners in California, especially those who have been sheltering tenants without being paid rent, by paying 100% of the back rent that’s owed them.
This announcement was welcome news to rental property owners because many have been providing housing to tenants who have paid little to no rent for most of the last 12 months.
Under the Governor’s plan, the State of California is going to use $2.6 billion in rental assistance from the Federal Government to help get landlords in California get back on track financially.
How Will The Money Be Spent?
Besides paying money to landlords that will help them to catch up financially from all rental arrears that are attributable to the Pandemic, the money will also be spent to pay a landlord’s past due utility and water bills as well.
If the Governor’s plan is successful, likely, landlords will not have to accept 80% of the rent owed, while forgiving 20% of a tenant's back rent because, under the new plan, a landlord is going to be paid 100% of what’s owed them.
Funds Will Be Distributed As Quickly As Possible
Once the rental assistance money is in the hands of state officials, the goal is to distribute that money as quickly as possible to landlords across the State who has been impacted by Covid-19.
This is exciting news for landlords, especially ‘mom and pop’ landlords in California who has been struggling financially as the eviction moratorium has been extended.
As we get closer to the start of summer 2021, it’s likely, landlords in California will be back on track financially, and the state isn’t stopping there because officials overseeing the distribution of the rental assistance money also have a goal to distribute more money to COVID-19 impacted renters as well.
Contact GoldenWest Management
At GoldenWest Management, you can count on us to rent your investment property for top dollar while providing your tenants with excellent service and support.
To learn more about the property management services that we can offer you, contact us today by calling (866) 545-5303 or click here to connect with us online.
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