Item 09 - First Amendment to Emergency Rental Assistance Program Spending Plan

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2 of 6 Proposed Framework Elements: The state of California is expected to receive approximately $2.6 billion in rental assistance for individuals economically impacted by COVID-19. This funding will be split between larger jurisdictions (those with a population of at least 200,000) receiving approximately $1.1 billion directly from the United States Department of the Treasury (UST) and the remaining $1.5 billion in funds allocated directly to the state for administration. The state has established a funding reservation table (attachment 1) with estimated allocation amounts for each eligible jurisdiction. While not a comprehensive list, key federal requirements include: o Funds must be used to support eligible households up to 80% Area Medium Income (AMI), with a priority for those up to 50% AMI and those who have been unemployed for 90 days prior to the date of application, with funding focused to ensure rental arrears are addressed to stabilize households and prevent evictions. o 90% of funds must be used to provide financial assistance, including back and forward rent and utility payments and other housing expenses. o Payments should be made directly to landlords or utility companies on behalf of renters; if a landlord refuses to accept the rental assistance the assistance may be provided directly to the tenant. o The UST is required to recapture excess funds not obligated by September 30, 2021 and will re-obligate them to jurisdictions that have met obligation targets. Programs must be established to avoid duplication of federal rental assistance benefits to households. California COVID-19 Tenant Relief Act (SB 91) • SB 91 extends the state’s current eviction moratorium for tenants unable to pay rent due to COVID-related financial hardships, as established under AB 3088, by 5 months, from January 31, 2021 until June 30, 2021. • Tenants must continue to pay 25% of their rental obligations, as required under AB 3088, through June 30, 2021. During this time, if tenants continue to pay at least 25% of their rent, then they are protected from eviction for any unpaid rent that has accumulated through June 30 and it can never be used as the basis for eviction. The 25% may be paid monthly, or as a lump sum, by June 30, 2021. SB 91 also establishes required elements for the state rental assistance program. Though not comprehensive, the list below highlights some of the key program parameters: • The rental assistance program will provide eligible landlords with immediate relief through the payment of 80% of their tenants’ rental arrears accumulated between April 1, 2020 and March 31, 2021. Landlords, in turn, agree to accept this payment as payment in full of any unpaid rent for that period. • In cases where a landlord chooses not to participate, an eligible tenant may apply to the program for 25% of their rental arrears, which will be paid to the EXHIBIT 7EXHIBIT 1