State of California and City of Sacramento Ban Evictions Due to COVID-19 Financial Hardship & State of Emergency
Governor Newsom issued an executive order effective immediately (3/16/2020) that prohibits the eviction of residents who are unable to pay rent because of a substantial decrease in income. This order protects residents who are subject to a layoff, reduction in work hours, or significant out-of-pocket medical expenses as a direct result of Covid-19.
Moratorium on Bank Foreclosures
Also, the executive order requests financial institutions to implement an immediate moratorium on foreclosures, which may provide relief to rental owners who are unable to collect rent from their residents. This executive order expires May 31, 2020 unless extended by Governor Newsom.
Sacramento Issues Emergency Ordinance
The Sacramento City Council also implemented an emergency ordinance (also effective immediately) that places a moratorium on evictions due to non-payment of rent if residents demonstrate that the inability to pay rent is due to COVID-19. Residents must notify their landlord or Sacramento property manager in writing before rent is due, provide verifiable documentation of the reason, and pay the portion of rent that there are able to pay.
Unlike the statewide executive order, the moratorium on evictions passed by the Sacramento City Council only applies to rental properties within the city and will remain in effect until the termination of the local public health emergency is declared by the Sacramento County Public Health Officer. Once the public health emergency is over, residents have 120 days to pay all unpaid rent. The moratorium on evictions will end after this 120-day period.
Click here for the full text of Governor Newsom's executive order.
For more information about how to handle non-payment of rent during this pandemic or anything else related to Sacramento property management, please contact us at Sacramento Delta; we'd be happy to help.
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