Complaint For Declaratory and Injunctive Relief, Cal. Rental Housing Ass'n v. Newsom, No. 2:21-cv-01394-JAM-JDP (E.D. Cal. Aug. 5, 2021)

Case 2:21-cv-01394-JAM-JDP Document 1 Filed 08/05/21 Page 1 of 52
1 PAUL J. BEARD II (State Bar No. 210563)

FISHERBROYLES LLP
2 4470 W. Sunset Blvd., Suite 93165
Los Angeles, CA 90027
3 Telephone: (818) 216-3988
Facsimile: (213) 402-5034
4 E-mail: [email protected]
5 Attorneys for Plaintiffs
CALIFORNIA RENTAL HOUSING ASSOCIATION, ET AL.
6
7 UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF CALIFORNIA
8
9 CALIFORNIA RENTAL HOUSING Case No.:
ASSOCIATION, MARY MONTANO, and
10 TRANG HO,
COMPLAINT FOR DECLARATORY
11 Plaintiffs AND INJUNCTIVE RELIEF, AND
DAMAGES
12 v.
[42 U.S.C. § 1983]
13 GAVIN NEWSOM, in his official capacity
as Governor of the State of California;
14 ROB BONTA, in his official capacity as
Attorney General of the State of California;
15 and DOES 1 through 20, inclusive,
16 Defendants.
17
18
19
20
21
22
23
24
25
26
27
28
COMPLAINT
1 INTRODUCTION
2 1. This is a federal civil rights challenge to a California law, Assembly Bill
3 832, that purports to indefinitely bar owners of rental property in the State of California
4 from repossessing their units for tenants’ failure to pay rent—even when tenants have
5 the financial means of doing so. AB 832 is the latest extension of a statewide
6 moratorium on evictions dating back to March 2020.
7 2. By eliminating the right to repossess property for failure to pay rent, the
8 law unconstitutionally burdens owners’ property rights, including their rights to
9 lawfully exclude and repossess their properties, in violation of the United States
10 Constitution’s Takings Clause. The law further rewrites and substantially impairs
11 existing leases and rental agreements, without adequate justification, in violation of the
12 Contracts Clause of Constitution.
13 3. Plaintiffs are an association of rental housing owners, as well as individual

14 landlords, who—for over one year—have been severely burdened financially and
15 emotionally by a seemingly never-ending eviction moratorium, with AB 832 as the
16 most recent iteration of the same.
17 4. Plaintiffs seek relief from enforcement of AB 832 and future similar laws
18 that continue or impose an unconstitutional moratorium on the right of rental housing
19 owners to repossess their properties for nonpayment of rent.
20 JURISDICTION AND VENUE

21 5. This action is brought pursuant to 42 U.S.C. § 1983, based on Defendants’
22 deprivation of the constitutional rights of Plaintiffs under the Fifth and Fourteenth
23 Amendments to the United States Constitution, as well as under Article I, Section 10,
24 Clause 1 of the United States Constitution. Accordingly, this Court has federal question
25 jurisdiction pursuant to 28 U.S.C. §§ 1331 and 1343. This Court has authority to grant
26 the requested declaratory and injunctive relief, and damages, pursuant to 28 U.S.C. §
27 2201, 28 U.S.C. § 1343(a), and 42 U.S.C. § 1983, and to award attorneys’ fees and costs
28 pursuant to, inter alia, 42 U.S.C. § 1988.
2
COMPLAINT
1 6. Venue is proper in this district pursuant to 28 U.S.C. §§ 1391(b)(1) and

2 (2), because Defendants are located within this district and a substantial part of the
3 events giving rise to Plaintiffs’ claims occurred in this district.
4 PARTIES
5 7. Plaintiff California Rental Housing Association (CalRHA) represents over
6 19,000+ dues-paying members who own more than 536,000+ units. Members consist
7 of small, medium, and large rental housing owners throughout the State of California.
8 All of CalRHA’s members are impacted by AB 832, which guts their rental agreements
9 and leases, and severely burdens their property rights. Members are ready, willing, and
10 able to repossess their units for tenants’ failure to pay rent, but are barred from doing
11 so because of AB 832. CalRHA brings this challenge on behalf of itself and its members
12 to vindicate their civil rights under 42 U.S.C. § 1983.
13 8. Plaintiff Mary Montano is 77 years old, and a California citizen and
14 resident. She lives on $1,700 Social Security income and the income from a duplex that
15 she owns and still has a mortgage on. She rented half of her duplex to an architect who
16 has a fancy website boasting of million-dollar projects. He recently did a road trip with
17 his three children to see historical landmarks. Yet he has refused to pay rent for the past
18 16 months. While he has submitted to Ms. Montano a declaration of COVID-19-related
19 financial distress, he refuses to complete the paperwork to apply for rental assistance,
20 because he knows he would not qualify given the income and wealth he has. The other
21 ½ of the duplex is paying; however, that is only enough to cover the mortgage on the
22 property. Ms. Montano had to take out a substantial loan to pay her property taxes. She
23 doesn’t know what she is going to do next if she cannot evict the nonpaying tenant and
24 replace him with a paying tenant. The lease with the nonpaying tenant makes clear she
25 has the right to evict and repossess the property for failure to pay rent. Beyond the
26 economic harm, she has been suffering enormous mental and emotional distress as the
27 direct result of her inability to rent out her property to paying tenants.
28 9. Plaintiff Trang Ho owns rental units in the City of Los Angeles. One unit
3
COMPLAINT
1 has a tenant who hasn’t paid rent since January 2021; another tenant in the same unit
2 hasn’t paid rent since June 2020. In another rental property owned by Ms. Ho, there is
3 a tenant who has refused to pay rent since March 2021. All were provided a declaration
4 of COVID-19-related financial distress form, which they have not filled out. There is
5 no evidence that any of the nonpaying tenants lacks the means to pay rent. Ms. Ho’s
6 leases executed by the nonpaying tenants contain a provision recognizing the right of
7 eviction and repossession for failure to pay rent. Ms. Ho has been suffering significant
8 mental and emotional distress as the direct result of her inability to rent out her property
9 to paying tenants.
10 10. Defendant GAVIN NEWSOM is sued in his official capacity as Governor

11 of the State of California. He is charged with the executive power of the State, including
12 the responsibility to “see that the law”—including AB 832—“is faithfully executed.”
13 Cal. Const. art. V, § 1.
14 11. Defendant ROB BONTA is sued in his official capacity as Attorney

15 General of the State of California. The Attorney General’s responsibilities include
16 enforcing the laws, including AB 832.
17 12. Plaintiffs are ignorant of the true names and capacities of Defendants sued
18 herein as DOES 1 through 20 and therefore sue Defendants by such fictitious names.
19 Plaintiffs are informed and believe, and on that basis allege, that each of the fictitiously
20 named Defendants is in some manner responsible or liable for the events and
21 happenings referred to herein, and that each such fictitiously named Defendant caused
22 injury and damage to Plaintiffs as alleged in this Complaint. Plaintiffs will amend or
23 seek leave of court to amend this Complaint to allege the true names and capacities of
24 such fictitiously named Defendants when the same are ascertained.
25 13. Plaintiffs are informed and believe, and thereon allege, that at all relevant
26 times, each of the Defendants was the agent of each of the remaining Defendants and,
27 in doing the things hereinafter alleged, was acting within the course and scope of such
28 agency or employment.
4
COMPLAINT
1 FACTUAL ALLEGATIONS
2 14. On August 31, 2020, purportedly in response to the COVID-19 pandemic,
3 the Governor signed into law Assembly Bill (“AB”) 3088. AB 3088 was intended to
4 provide “temporary” protections from eviction for residents who fail to pay the rent that
5 came due between March 1, 2020, and January 31, 2021.
6 15. Relevantly, AB 3088 rewrites leases and burdens the property rights of
7 rental housing owners as follows:
8 a. A tenant who submits a so-called declaration of COVID-19-related

9 financial distress (“COVID declaration”) claiming decreased income or
10 increased expenses due to the COVID-19 pandemic, is automatically
11 protected against eviction for rent due between March 1, 2020 and August
12 31, 2020. No owner who receives that declaration, regardless of its
13 truthfulness and regardless of the tenant’s actual ability to pay rent, can
14 exercise his contract and property rights to repossess his unit for
15 nonpayment of rent coming due between March and August 2020.
16 b. A tenant who submits a COVID declaration and pays 25 percent of
17 payments missed between September 1, 2020, and January 31, 2021, is
18 automatically protected against eviction. No owner who receives that
19 declaration and 25% of rental payments missed during that time period,
20 regardless of the declaration’s truthfulness and regardless of the tenant’s
21 actual ability to pay full rent, can exercise his contract and property rights
22 to repossess his unit for nonpayment of rent coming due between
23 September 2020 and January 2021.
24 c. Beyond submitting a signed COVID declaration to the owner, a tenant who
25 wishes to be protected against eviction under AB 3088 does not need to
26 actually prove inability to pay. At most, the tenant can be required to
27 produce evidence only of a decrease in income or increase in expenses due
28 to COVID-19. Thus, even independently wealthy tenants who experience
5
COMPLAINT
1 a decrease in income or an increase in expenses due to COVID (however

2 minor), but who can easily make rental payments in full during the relevant
3 time periods, can defer those payments and shield themselves from
4 eviction.
5 16. On January 29, 2021, the Governor signed into law Senate Bill (“SB”) 91,
6 which extends AB 3088’s eviction moratorium.
7 17. Relevantly, SB 91 rewrites leases and burdens the property rights of rental
8 housing owners as follows: Under SB 91, a tenant who submits a COVID declaration
9 and pays 25 percent of payments missed between September 1, 2020, and June 30,
10 2021, in whole or in part, is automatically protected against eviction. No owner who

11 receives that declaration and 25% of rental payments missed during that time period,
12 regardless of the declaration’s truthfulness and regardless of the tenant’s actual ability
13 to pay full rent, can exercise his contract and property rights to repossess his unit for
14 nonpayment of rent coming due between September 2020 and June 2021.
15 18. On June 11, 2021, with the COVID-19 pandemic substantially subsiding,
16 the Governor took action to fully reopen the State. The Governor lifted pandemic
17 executive orders, including terminating the stay-at-home order implemented early in the
18 pandemic. Effective June 15, state-wide restrictions, such as physical distancing and
19 capacity limits, also were lifted. Further, between June 2020—in the throes of the
20 COVID-19 pandemic—and June 2021, the State’s unemployment rate has been nearly
21 halved from 14.1% to 7.7%.
22 19. Nevertheless, on June 28, 2021, the Governor signed AB 832, further
23 extending the eviction moratorium for an additional three months. A true and correct
24 copy of AB 832 is attached hereto as Exhibit A and incorporated herein by reference.
25 20. AB 832 rewrites leases and burdens the property rights of rental housing
26 owners as follows: A tenant who submits a COVID declaration and pays 25 percent of
27 payments missed through September 30, 2021, in whole or in part, is automatically
28 protected against eviction. No owner who receives that declaration and 25% of rental
6
COMPLAINT
1 payments missed during that time period, regardless of the declaration’s truthfulness
2 and regardless of the tenant’s actual ability to pay full rent, can exercise his contract
3 and property rights to repossess his unit for nonpayment of rent coming due between
4 September 2020 and September 2021.
5 21. CalRHA’s members and individual Plaintiffs own rental properties in the
6 State of California with nonpaying tenants. Frequently, those nonpaying tenants have
7 been financially capable of paying the full rent during the pandemic, but were able to
8 evade the obligation to pay by virtue of the State’s generous eviction moratorium most
9 recently extended by AB 832. While the economic impact on rental housing owners of
10 such a moratorium is self-evident, the moratorium has also inflicted untold mental and
11 emotional injury on owners as they grapple with the financial implications of not being
12 able to make ends meet.
13 22. Many rental housing owners, including individual Plaintiffs and Plaintiff
14 CalRHA’s members, will never recover the unpaid rents that have accumulated during
15 the moratorium. Further, even those owners who recover some or all of the unpaid rents
16 will have been compelled, by law, to give tenants interest-free loans for the period of
17 time during which rents went unpaid, because the law does not provide for the payment
18 of interest on delayed rent payments.
19 FIRST CLAIM
20 Violation of the Takings Clause of the United States Constitution
21 (U.S. Const. amends. V, XIV; 42 U.S.C. § 1983)
22 23. Plaintiffs incorporate herein by reference each and every allegation
23 contained in the preceding paragraphs of this Complaint as though fully set forth herein.
24 24. The Takings Clause of the Fifth Amendment to the United States
25 Constitution prohibits the government from taking private property unless (a) it is for a
26 “public use” and (b) “just compensation” is paid to the rental housing owner. U.S.
27 Const. amend. V, XIV (making Takings Clause applicable to state and local
28 governments); see also Brown v. Legal Foundation of Washington, 538 U.S. 216, 231-
7
COMPLAINT
1 32 (2003) (underscoring the Takings Clause’s two separate requirements). The Takings
2 Clause was enshrined in the Constitution so that the government would not “force some
3 people alone to bear public burdens which, in all fairness and justice, should be borne
4 by the public as a whole.” Armstrong v. United States, 364 U.S. 40, 49 (1960).
5 25. If the government “fails to meet the ‘public use’ requirement,” then “that
6 is the end of the inquiry,” and “[n]o amount of compensation can authorize such action.”
7 Lingle v. Chevron U.S.A. Inc., 544 U.S. 528, 543 (2005). A government taking of
8 property for a private use or purpose is barred. As the United States Supreme Court has
9 explained: “it has long been accepted that the sovereign” (i.e., the government) “may
10 not take the property of A for the sole purpose of transferring it to B.” Kelo v. City of
11 New London, 545 U.S. 469, 477 (2005); Calder v. Bull, 3 U.S. 386 (1798). (holding that
12 “[i]t is against all reason and justice” to presume that the legislature has been entrusted
13 with the power to enact “a law that takes property from A and gives it to B”)).
14 26. “Nor would the [government] be allowed to take property under the mere
15 pretext of a public purpose, when its actual purpose was to bestow a private benefit.”
16 Kelo, 545 U.S. at 478. If a taking is designed simply “to benefit a particular class of
17 identifiable individuals,” then the taking is not for a “public use” consistent with the
18 Public Use Clause, and is therefore unconstitutional. Id. Significantly, takings with only
19 an “incidental” public benefit “are forbidden by the Public Use Clause.” Id. at 490
20 (Kennedy, J., concurring); see also Loretto v. Teleprompter Manhattan Catv Corp., 458
21 U.S. 419 (1982) (holding that a “taking” under the Takings Clause occurs even when,
22 under the authority of law, “a stranger directly invades and occupies the owner’s
23 property” and does not pass to or through the government’s hands).
24 27. AB 832 imposes a moratorium on evictions for nonpayment of rent,

25 effectively transferring the fundamental right to exclude from owners to nonpaying
26 tenants. Further, AB 832 eliminates, for an indefinite period of time, owners’ right to
27 make economically beneficial and productive use of their rental properties, because the
28 law indefinitely deprives owners of the only legal remedy they have to guarantee a
8
COMPLAINT
1 reasonable return on their investment: the right to terminate a tenancy and evict a tenant
2 for nonpayment of rent.
3 28. Through its moratorium on evictions, AB 832 effects a per se taking of
4 rental housing owners’ properties, because it indefinitely grants tenants near-
5 unqualified access to and use of the properties, as well as the right to exclude owners.
6 See, e.g., Loretto v. Teleprompter Manhattan CATV Corp., 458 U.S. 419, 434–35
7 (1982) (regulation requiring property owner to allow cable company to install cable
8 facilities on his property effects a per se taking).
9 29. In the alternative, AB 832 effects a categorical regulatory taking under
10 Lucas v. South Carolina Coastal Council, 505 U.S. 1003 (1992), because it deprives
11 owners of all “economically beneficial” or “viable” use of their properties. At a
12 minimum, AB 832 effects a noncategorical regulatory taking under Penn Central
13 Transp. Co. v. New York City, 438 U.S. 104 (1978), because: (1) the moratorium’s
14 “economic impact” on rental housing owners is devastating, given their right to lawfully
15 repossess their properties for nonpayment of rent is for all practical intents and purposes
16 eliminated; (2) the extent to which the law has interfered with distinct investment-
17 backed expectations, based on existing law and rental agreements, is substantial; and
18 (3) the character of Defendants’ action—enforcement of a law that confers no
19 reciprocity of advantage, but rather penalizes owners to the exclusive benefit of
20 tenants—weighs decisively in favor of finding a taking.
21 30. The taking effected by the moratorium is unconstitutional under the Fifth
22 Amendment, for two reasons. First, the taking is not for a public use or purpose. The
23 moratorium’s express purpose and effect are to benefit “a particular class of identifiable
24 individuals”—namely, tenants. Kelo, 545 U.S. at 478. As such, the moratorium violates
25 the Public Use requirement of the Takings Clause.
26 31. Second, AB 832 provides no immediate or adequate mechanism for

27 compensating owners for the loss of their property rights. The moratorium eliminates
28 housing owners’ full rights to possess, use, and exclude, pursuant to their existing rental
9
COMPLAINT
1 agreements and the Constitution. Yet AB 832 provides no immediate and adequate
2 compensation for the taking. AB 832 is at total cross-purposes with the Takings Clause,
3 which is intended to ensure that government does not “force some people alone to bear
4 public burdens which, in all fairness and justice, should be borne by the public as a
5 whole.” Armstrong, 364 U.S. at 49.
6 32. Plaintiffs have no adequate remedy at law and will suffer serious and
7 irreparable harm to their constitutional rights unless Defendants are immediately
8 enjoined from implementing and enforcing AB 832, and any extension of the existing
9 moratorium or a new eviction moratorium enacted by the State in the future. Further,
10 Plaintiffs are entitled to nominal and compensatory damages for violation of their
11 constitutional rights under 42 U.S.C. § 1983.
12 SECOND CLAIM
13 Violation of the Contracts Clause of the United States Constitution
14 (U.S. Const. Art. I, § 10, cl. 1; 42 U.S.C. § 1983)
15 33. Plaintiffs incorporate herein by reference each and every allegation
16 contained in the preceding paragraphs of this Complaint, as though fully set forth herein.
17 34. The Contracts Clause of the United States Constitution prohibits local
18 governments from passing “any . . . Law impairing the Obligation of Contracts.” U.S.
19 Const., Art. I, §10, cl. 1. Contracts Clause violations are actionable under 42 U.S.C. §
20 1983. Southern California Gas Co. v. City of Santa Ana, 336 F.3d 885, 887 (9th Cir.
21 2003) (“The right of a party not to have a State, or a political subdivision thereof, impair
22 its obligations of contract is a right secured by the first article of the United States
23 Constitution. A deprivation of that right may therefore give rise to a cause of action
24 under section 1983.”).
25 35. Whether a law substantially impairs a contractual relationship depends
26 upon “the extent to which the law undermines the contractual bargain, interferes with a
27 party’s reasonable expectations, and prevents the party from safeguarding or reinstating
28 his rights.” Sveen v. Melin, 138 S. Ct. 1815, 1822 (2018). First, the court will determine
10
COMPLAINT
1 whether the law “operate[s] as a substantial impairment of a contractual relationship.”

2 Allied Structural Steel Co. v. Spannaus, 438 U.S. 234, 244 (1978). “In answering that
3 question, the Court has considered the extent to which the law undermines the
4 contractual bargain, interferes with a party’s reasonable expectations, and prevents the
5 party from safeguarding or reinstating his rights.” Sveen, 138 S. Ct. at 1822. Second,
6 the court considers “whether the [challenged] law is drawn in an ‘appropriate’ and
7 ‘reasonable’ way to advance ‘a significant and legitimate public purpose.’” Sveen, 138
8 S. Ct. at 1822 (quoting Energy Reserves Group, Inc. v. Kansas Power & Light Co., 459
9 U.S. 400, 411-412 (1983)).
10 36. Here, AB 832 substantially impairs the contractual relationship between
11 rental housing owners and their tenants. Individual plaintiffs and members of CalRHA
12 have leases entitling owners to repossess units when rent is not paid. The law has
13 rewritten the lease to eliminate that contract right for an indefinite period of time. While
14 the initial moratorium, enacted by AB 3088, was conceived of as a temporary measure,
15 subsequent statutory extensions of the moratorium make clear that the elimination of
16 the eviction right will persist for an indefinite period of time. AB 832 undermines the
17 contractual bargain that is the hallmark of all rental agreements, including the
18 agreements of individual plaintiffs and CalRHA members.
19 37. In addition, AB 832 significantly interferes with owners’ reasonable
20 expectations. No rental housing owner, including individual plaintiffs and CalRHA’s
21 members, could ever have foreseen or expected the COVID-19 pandemic (the State’s
22 purported justification for the moratorium) and or the extent to which governments (like
23 the State) would use those extraordinary circumstances to justify crippling restrictions
24 on their livelihoods as owners, and violations of their rights under existing rental
25 agreements and the United States Constitution. Never before have rental housing
26 owners faced the prospect of being compelled by law to indefinitely house tenants
27 irrespective of payment of rent.
28 38. Because AB 832 substantially impairs contracts, Defendants bear the
11
COMPLAINT
1 burden of showing that the impairment is both reasonable and necessary. Defendants
2 cannot meet that burden. AB 832 cites the COVID-19 pandemic as its justification. But,
3 as the State knows, the spread and effects of COVID-19 have dramatically waned, as
4 evidenced by the Governor’s lifting of COVID-related executive orders on June 11.
5 There being no bone fide emergency, Defendants cannot establish that the substantial
6 impairment of housing owners’ rental agreements is reasonable or necessary.
7 39. In sum, AB 832 unilaterally rewrites all rental agreements within the State
8 to eliminate the contractual right to repossess units for nonpayment of rent, without any
9 attempt to tie such wholesale revisions to the COVID-19 pandemic. Even if there were
10 a legitimate purpose behind AB 832, which there is not, the complete obliteration of the
11 contract rights of individual plaintiffs and CalRHA’s members is not a reasonable or
12 necessary means of achieving that purpose. Accordingly, the contractual impairments
13 effectuated by AB 832 violate the Contracts Clause and are unconstitutional.
14 40. In enforcing AB 832 to Plaintiffs and other rental housing owners,

15 Defendants are acting under color of law. Defendants’ conduct in adopting and
16 enforcing that law has deprived and, unless enjoined, will continue to deprive owners
17 of their rights, privileges, and immunities secured by the United States Constitution
18 and/or laws of the United States to which owners are entitled.
19 41. Unless Defendants are enjoined and restrained from enforcing AB 832,
20 and any extension of the existing moratorium or a new eviction moratorium enacted by
21 the State in the future, Plaintiffs and other owners will be irreparably injured. They will
22 be deprived of rights guaranteed under the United States Constitution. Further, Plaintiffs
23 are entitled to nominal and compensatory damages for violation of their constitutional
24 rights under 42 U.S.C. § 1983.
25 PRAYER FOR RELIEF
26 WHEREFORE, Plaintiffs request relief as follows:
27 1. A declaratory judgment that AB 832 is null and void, and of no effect,
28 because it deprives rental housing owners, including individual Plaintiffs and
12
COMPLAINT
1 CalRHA’s members, of the rights, privileges, and immunities secured by the United
2 States Constitution, as follows:
3 a. It effects an unconstitutional taking of private property, in violation of
4 the Fifth and Fourteenth Amendments to the United States Constitution.
5 b. It violates the Contracts Clause of Article I, section 10, of the United
6 States Constitution.
7 2. A temporary, preliminary, and permanent injunction enjoining
8 Defendants, and all those in active concert or participation with them, from
9 implementing or enforcing AB 832, as well as any similar statutory extension or other
10 law enacted in the future that continues or otherwise imposes a moratorium on the right
11 to evict and repossess rental property.
12 3. Nominal and compensatory damages to individual Plaintiffs for violation
13 of their federal constitutional rights.
14 4. Reasonable attorneys’ fees and costs incurred in this action, including fees
15 and costs incurred to challenge AB 832 pursuant to, inter alia, 42 U.S.C. § 1988.
16 5. Any and all other relief to Plaintiffs as the Court may deem proper and just.
17 DATED: August 5, 2021 FISHERBROYLES LLP
18
s/ Paul Beard II
19
PAUL BEARD II
20
Attorneys for Plaintiffs California Rental Housing
21 Association, et al.
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COMPLAINT
EXHIBIT A
8/5/2021 Bill Text - AB-832 COVID-19 relief: tenancy: federal rental assistance.
Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites
AB-832 COVID-19 relief: tenancy: federal rental assistance. (2021-2022)
SHARE THIS: Date Published: 06/29/2021 02:00 PM
Assembly Bill
No. 832
CHAPTER 27
An act to amend Sections 789.4, 1788.65, 1788.66, 1942.5, and 3273.1 of the Civil Code, to amend
Sections 116.223, 871.10, 871.11, 871.12, 1161.2.5, 1179.02, 1179.03, 1179.03.5, 1179.04, 1179.05,
and 1179.07 of, to amend and repeal Section 1161.2 of, and to add and repeal Chapter 6 (commencing
with Section 1179.08) of Title 3 of Part 3 of, the Code of Civil Procedure, and to amend Sections 50897,
50897.1, 50897.2, 50897.3, and 50897.4 of, and to add Sections 50897.2.1 and 50897.3.1 to, the
Health and Safety Code, relating to tenancy, and declaring the urgency thereof, to take effect
immediately.
[
Approved by
Governor
June 28, 2021.
Filed with
Secretary of State
June 28, 2021.
]
LEGISLATIVE COUNSEL'S DIGEST
AB 832, Chiu.
COVID-19 relief: tenancy: federal rental assistance.
(1) Existing law prohibits a landlord from interrupting or terminating utility service furnished to a tenant with the
intent to terminate the occupancy of the tenant and imposes specified penalties on a landlord who violates that
prohibition. Existing law, until July 1, 2021, imposes additional damages in an amount of at least $1,000, but not
more than $2,500, on a landlord that violates that prohibition if the tenant has provided a declaration of COVID-
19 financial distress, as specified.
This bill would extend the imposition of those additional damages until October 1, 2021.
(2) Existing law regulates the activities of a person or entity that has bought charged-off consumer
debt, as
defined, for collection purposes and the circumstances pursuant to which the person may bring suit. Existing law,
until July 1, 2021, prohibits a person from selling or assigning unpaid COVID-19 rental debt, as defined, for the
time period between March 1, 2020, and June 30, 2021. Existing law also prohibits a person from selling or
assigning unpaid COVID-19 rental debt, as defined, for that same time period of any person who would have
qualified for rental assistance funding, provided pursuant to specified federal law, if the person’s household
income is at or below 80% of the area median income for the 2020 calendar year.
This bill would extend the time period to which both prohibitions against selling or assigning unpaid COVID-19
rental debt apply to September 30, 2021, and would repeal only the general prohibition on October 1, 2021. The
bill would extend the calculation of the median income to the 2021 calendar year.
(3) Existing law, until July 1, 2021, prohibits a landlord from bringing an action for unlawful detainer based on a
cause of action other than nonpayment of COVID-19 rental debt, as defined, for the purpose of retaliating
against the lessee because the lessee has COVID-19 rental debt.
This bill would extend this provision until October 1, 2021.
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB832 1/38
Case
(4) Existing 2:21-cv-01394-JAM-JDP
law, the COVID-19 Small Landlord andDocument
Homeowner1 Relief
Filed
Act08/05/21
of 2020, amongPage 16things,
other of 52requires
that a mortgage servicer, as defined, that denies a forbearance request during the effective time period provide
specified written notice to the borrower, as defined, that sets forth the specific reason or reasons that
forbearance was not provided if certain conditions are met. The act defines the “effective time period” to mean
the period between the operational date of the act and September
1, 2021.
This bill would extend the “effective time period” until December 1, 2021.
(5) Existing law, until July 1, 2025, provides that a small claims court has jurisdiction in any action for recovery
of COVID-19 rental debt, as defined, regardless of the amount demanded. Existing law prohibits the
commencement of an action to recover COVID-19 rental debt brought under these provisions before August 1,
2021.
This bill would extend these provisions until October 1, 2025. The bill would also extend the above-described
prohibition on commencing an action in small claims court to recover COVID-19 rental debt until November 1,
2021.
(6) Existing law, until July 1, 2027, requires a plaintiff, in an action seeking recovery of COVID-19 rental debt, to
attach to the complaint documentation showing that
the plaintiff has made a good faith effort to investigate
whether governmental rental assistance is available to the tenant, seek governmental rental assistance for the
tenant, or cooperate with the tenant’s efforts to obtain rental assistance from any governmental entity or other
third party, as specified. Existing law, until July 1, 2027, also authorizes the court to reduce the damages
awarded for any amount of COVID-19 rental debt sought if the court determines that the landlord refused to
obtain state rental assistance, as described below, if the tenant met the eligibility requirements and funding was
available. Existing law creates an exception to that authorization within any jurisdiction that received a direct
allocation of assistance from the Secretary of the Treasury pursuant to the federal Consolidated Appropriations
Act, 2021 and did not accept a block grant pursuant to the rental assistance program described below, as
specified. Existing law requires, subject to a certain exception, an action
subject to that provision that was
pending as of January 29, 2021, to be stayed until July 1, 2021.
This bill would repeal the exception to the damage reduction authorization described above, would instead
require those actions to be stayed until November 1, 2021, and would extend these provisions until October 1,
2027.
Existing law, until July 1, 2025, prohibits a court from awarding attorney’s fees that exceed specified amounts,
which vary based on whether the matter is contested or uncontested, in any action to recover COVID-19 rental
debt, as defined, brought as a limited or unlimited civil case under ordinary circumstances, determined as
provided.
This bill would extend those provisions until October 1, 2025.
(7) Existing law, in certain actions involving the possession of real property, including unlawful
detainer actions,
authorizes the clerk to allow access to limited civil case records only to certain persons. Existing law authorizes
the clerk to allow access to these records to any person by order of the court, if judgment is entered for the
plaintiff after trial more than 60 days after filing the complaint or 60 days after the complaint has been filed, if
the plaintiff prevails in the action within 60 days of filing the complaint. Until July 1, 2021, these provisions
allowing access to court records to any person do not apply if the plaintiff filed the action between March 4,
2020, and June 30, 2021, and the action is based on the alleged default in the payment of rent. Subject to those
provisions, until July 1, 2021, existing law authorizes the clerk to allow access to civil case records for actions
seeking recovery of COVID-19 rental debt, as defined, only to certain persons.
This bill would, among other things, extend the exception described above
indefinitely and would apply it to
actions filed between March 4, 2020, and September 30, 2021, and would extend indefinitely the limitation on
access to civil case records for actions seeking recovery of COVID-19 rental debt. The bill would require the
Judicial Council to develop forms for parties to utilize in actions brought for recovery of COVID-19 rental debt.
(8) Existing law, the COVID-19 Tenant Relief Act, until July 1, 2025, establishes procedural requirements and
limitations on evictions for nonpayment of rent due to COVID-19 rental debt, as defined. The act, among other
things, prohibits a tenant that delivers a declaration, under penalty of perjury, of COVID-19-related financial
distress from being deemed in default with regard to the COVID-19 rental debt, as specified.
The act requires that a notice that demands payment of COVID-19 rental debt served pursuant to specified law
be modified,
as provided. The act requires that notices provided between September 1, 2020, and June 3, 2021,
comply Case 2:21-cv-01394-JAM-JDP

with certain requirements, including that Document 1 Filed
the notice include certain08/05/21
text. The actPage 17theofDepartment
requires 52
of Real Estate to make available an official translation of that text into certain languages by no later than
February 15, 2021.
This bill would extend the operation of the COVID-19 Tenant Relief Act to October 1, 2025, and would also
extend operation of those requirements until September 30, 2021. The bill would also make conforming changes
and would require notices described above that are served on or after July 1, 2021, to include certain text. The
bill would instead require the Department of Housing and Community Development (HCD) to make available, on
or before July 15, 2021, the official translation described above.
(9) Existing law establishes a program for providing rental assistance,

using funding made available pursuant to
the federal Consolidated Appropriations Act, 2021 (Appropriations Act), administered by HCD. Existing law,
among other things, provides for the allocation of block grant funds to localities, as defined, that meet certain
population requirements. Existing law requires an eligible grantee under these provisions to request an allocation
from HCD by February 12, 2021, and requires HCD to complete the initial allocation of these funds no later than
February 19, 2021. Existing law authorizes eligible uses of funds allocated to grantees under these provisions,
consistent with the requirements of the Appropriations Act. Existing law provides that a grantee may provide
assistance for rental arrears as a payment directly to a landlord on behalf of an eligible household by entering
into an agreement with the landlord, subject to specified conditions, including that compensation be set at 80%
of an eligible household’s unpaid rental debt accumulated from April 1, 2020, to March
31, 2021. Existing law
limits funds used to provide assistance for prospective rent payments for an eligible household to 25% of the
eligible household’s monthly rent.
This bill would revise and recast those provisions, including revisions to the state allocation of funds. The bill
would specify requirements for Round 1 and Round 2 funds, as defined. This bill would, among other things, set
the compensation for an eligible household’s unpaid rental debt accumulated on or after April 1, 2020 at 100%.
This bill would require funds used to provide assistance for prospective rent payments for an eligible household
to be set at 100% of the eligible household’s monthly rent. The bill would specify requirements for grantees and
eligibility for rental assistance.
This bill would enact the COVID-19 Rental Housing Recovery Act, which would, until September 30, 2024, among
other things, place certain restrictions on an unlawful
detainer action pertaining to residential real property that
is based, in whole or in part, on nonpayment of rental debt that accumulated due to COVID-19 hardship,
including by prohibiting a court from issuing a summons on a complaint for unlawful detainer that seeks
possession of residential real property based on nonpayment of rental debt that accumulated due to COVID-19
hardship unless the plaintiff also files a statement, under penalty of perjury, that the plaintiff attempted to obtain
rental assistance pursuant to a program described above and was denied and a copy of a final decision, as
defined, from the pertinent government rental assistance program denying a rental assistance application for the
property at issue in the case.
Existing law, in a legal action to recover rent or other financial obligations under a lease that accrued between
April 1, 2020, and June 30, 2021, requires, before entry of judgment in the plaintiff’s favor, the plaintiff to verify
certain information, under penalty of perjury, relating to state rental assistance.
This bill would apply those provisions to rent or other financial obligations under a lease that accrued between
April 1, 2020, and September 30, 2021.
By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program.
(10) The California Constitution requires the state to reimburse local agencies and school districts for certain
costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(11) Existing constitutional provisions require that a statute that

limits the right of access to the meetings of
public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest
protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
(12) This bill would declare that it is to take effect immediately as an urgency statute.
Vote:
2/3
Appropriation:
no
Fiscal Committee:
yes
Local Program:
yes
THE PEOPLE OF THE STATE OF CALIFORNIA

Case 2:21-cv-01394-JAM-JDP DO
Document 1 ENACT AS FOLLOWS:
Filed 08/05/21 Page 18 of 52
SECTION 1. Section 789.4 of the Civil Code is amended to read:
789.4. (a) In addition to the damages provided in subdivision (c) of Section 789.3, a landlord who violates
Section 789.3, if the tenant has provided a declaration of COVID-19 financial distress pursuant to Section
1179.03 of the Code of Civil Procedure, shall be liable for damages in an amount that is at least one thousand
dollars ($1,000) but not more than two thousand five hundred dollars ($2,500), as determined by the trier of
fact.
(b) This section shall remain in effect until October 1, 2021, and as of that date is repealed.
SEC. 2. Section 1788.65 of the Civil Code is amended to read:
1788.65. (a) Notwithstanding any other law, a person shall not sell or assign any unpaid COVID-19 rental debt, as
defined in Section 1179.02 of the Code of Civil Procedure, for the time period between March 1, 2020, and
September 30, 2021.
(b) This section shall remain in effect until October 1, 2021, and as of that date is repealed.
1788.66. Notwithstanding any other law, a person shall not sell or assign any unpaid COVID-19 rental debt, as
defined in Section 1179.02 of the Code of Civil Procedure, for the time period between March 1, 2020, and
September 30, 2021, of any person who would have qualified for rental assistance funding provided by the
Secretary of the Treasury pursuant to Section 501 of Subtitle A of Title V of Division N of the federal Consolidated
Appropriations Act, 2021 (Public Law
116-260) or Section 3201 of Subtitle B of Title III of the federal American
Rescue Plan Act of 2021 (Public Law 117-2), if the person’s household income is at or below 80 percent of the
area median income for the 2020 or 2021 calendar year.
SEC. 4. Section 1942.5 of the Civil Code, as amended by Section 5 of

Chapter 2 of the Statutes of 2021, is
amended to read:
1942.5. (a) If the lessor retaliates against the lessee because of the exercise by the lessee of the lessee’s rights
under this chapter or because of the lessee’s complaint to an appropriate agency as to tenantability of a
dwelling, and if the lessee of a dwelling is not in default as to the payment of rent, the lessor may not recover
possession of a dwelling in any action or proceeding, cause the lessee to quit involuntarily, increase the rent, or
decrease any services within 180 days of any of the following:
(1) After the date upon which the lessee, in good faith, has given notice pursuant to Section 1942, has provided
notice of a suspected bed bug infestation, or has made an oral complaint to the lessor regarding tenantability.
(2) After the date upon which the lessee, in good faith, has filed a written complaint, or an oral complaint which
is registered or otherwise recorded in writing, with an appropriate agency, of which the lessor has notice, for the
purpose of obtaining correction of a condition relating to tenantability.
(3) After the date of an inspection or issuance of a citation, resulting from a complaint described in paragraph
(2) of which the lessor did not have notice.
(4) After the filing of appropriate documents commencing a judicial or arbitration proceeding involving the issue
of tenantability.
(5) After entry of judgment or the signing of an arbitration award, if any, when in the judicial proceeding or
arbitration the issue of tenantability is determined
adversely to the lessor.
In each instance, the 180-day period shall run from the latest applicable date referred to in paragraphs (1) to
(5), inclusive.
(b) A lessee may not invoke subdivision (a) more than once in any 12-month period.
(c) To report, or to threaten to report, the lessee or individuals known to the landlord to be associated with the
lessee to immigration authorities is a form of retaliatory conduct prohibited under subdivision (a). This
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shall Document
in no way limit the definition of retaliatory 1 Filed
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under this 19
section. of 52
(d) Notwithstanding subdivision (a), it is unlawful for a lessor to increase rent, decrease services, cause a lessee
to quit involuntarily, bring an action to recover possession, or threaten to do any of those acts, for the
purpose of
retaliating against the lessee because the lessee has lawfully organized or participated in a lessees’ association
or an organization advocating lessees’ rights or has lawfully and peaceably exercised any rights under the law. It
is also unlawful for a lessor to bring an action for unlawful detainer based on a cause of action other than
nonpayment of COVID-19 rental debt, as defined in Section 1179.02 of the Code of Civil Procedure, for the
purpose of retaliating against the lessee because the lessee has a COVID-19 rental debt. In an action brought by
or against the lessee pursuant to this subdivision, the lessee shall bear the burden of producing evidence that
the lessor’s conduct was, in fact, retaliatory.
(e) To report, or to threaten to report, the lessee or individuals known to the landlord to be associated with the
lessee to immigration authorities is a form of retaliatory conduct prohibited under subdivision (d). This
subdivision shall in no way limit the definition of retaliatory conduct prohibited under this section.
(f) This section does not limit in any way the exercise by the lessor of the lessor’s rights under any lease or
agreement or any law pertaining to the hiring of property or the lessor’s right to do any of the acts described in
subdivision (a) or (d) for any lawful cause. Any waiver by a lessee of the lessee’s rights under this section is void
as contrary to public policy.
(g) Notwithstanding subdivisions (a) to (f), inclusive, a lessor may recover possession of a dwelling and do any
of the other acts described in subdivision (a) within the period or periods prescribed therein, or within
subdivision (d), if the notice of termination, rent increase, or other act, and any pleading or statement of issues
in an arbitration, if any, states the ground upon which the lessor, in good
faith, seeks to recover possession,
increase rent, or do any of the other acts described in subdivision (a) or (d). If the statement is controverted,
the lessor shall establish its truth at the trial or other hearing.
(h) Any lessor or agent of a lessor who violates this section shall be liable to the lessee in a civil action for all of
the following:
(1) The actual damages sustained by the lessee.
(2) Punitive damages in an amount of not less than one hundred dollars ($100) nor more than two thousand
dollars ($2,000) for each retaliatory act where the lessor or agent has been guilty of fraud, oppression, or malice
with respect to that act.
(i) In any action brought for damages for retaliatory eviction, the court shall award reasonable attorney’s fees
to
the prevailing party if either party requests attorney’s fees upon the initiation of the action.
(j) The remedies provided by this section shall be in addition to any other remedies provided by statutory or
decisional law.
(k) A lessor does not violate subdivision (c) or (e) by complying with any legal obligation under any federal
government program that provides for rent limitations or rental assistance to a qualified tenant.
(l) This section shall remain in effect until

October 1, 2021, and as of that date is repealed.
SEC. 5. Section 1942.5 of the Civil Code, as amended by Section 6 of

Chapter 2 of the Statutes of 2021, is
amended to read:
1942.5. (a) If the lessor retaliates against the lessee because of the exercise by the lessee of the lessee’s rights
under this chapter or because of the lessee’s complaint to an appropriate agency as to tenantability of a
dwelling, and if the lessee of a dwelling is not in default as to the payment of rent, the lessor may not recover
possession of a dwelling in any action or proceeding, cause the lessee to quit involuntarily, increase the rent, or
decrease any services within 180 days of any of the following:
(1) After the date upon which the lessee, in good faith, has given notice pursuant to Section 1942, has provided
notice of a suspected bed bug infestation, or has made an oral complaint to the lessor regarding tenantability.
(2) After the date upon which the lessee, in good faith, has filed a written complaint, or an oral complaint which
is registered or otherwise recorded in writing, with an appropriate agency, of which the lessor has notice, for the
purpose of obtaining correction of a condition relating to tenantability.
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(3) After 2:21-cv-01394-JAM-JDP
the date Document
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described paragraph
(2) of which the lessor did not have notice.
(4) After the filing of appropriate documents commencing a judicial or arbitration proceeding involving the issue
of tenantability.
(5) After entry of judgment or the signing of an arbitration award, if any, when in the judicial proceeding or
arbitration the issue of tenantability is determined
adversely to the lessor.
In each instance, the 180-day period shall run from the latest applicable date referred to in paragraphs (1) to
(5), inclusive.
(b) A lessee may not invoke subdivision (a) more than once in any 12-month period.
(c) To report, or to threaten to report, the lessee or individuals known to the landlord to be associated with the
lessee to immigration authorities is a form of retaliatory conduct prohibited under subdivision (a). This
(d) Notwithstanding subdivision (a), it is unlawful for a lessor to increase rent, decrease services, cause a lessee
to quit involuntarily, bring an action to recover possession, or threaten to do any of those acts, for the
purpose of
retaliating against the lessee because the lessee has lawfully organized or participated in a lessees’ association
or an organization advocating lessees’ rights or has lawfully and peaceably exercised any rights under the law. In
an action brought by or against the lessee pursuant to this subdivision, the lessee shall bear the burden of
producing evidence that the lessor’s conduct was, in fact, retaliatory.
(e) To report, or to threaten to report, the lessee or individuals known to the landlord to be associated with the
lessee to immigration authorities is a form of retaliatory conduct prohibited under subdivision (d). This
(f) This section does not limit in any way the exercise by the lessor of the lessor’s rights under any lease or
agreement or any law pertaining to
the hiring of property or the lessor’s right to do any of the acts described in
subdivision (a) or (d) for any lawful cause. Any waiver by a lessee of the lessee’s rights under this section is void
as contrary to public policy.
(g) Notwithstanding subdivisions (a) to (f), inclusive, a lessor may recover possession of a dwelling and do any
of the other acts described in subdivision (a) within the period or periods prescribed therein, or within
subdivision (d), if the notice of termination, rent increase, or other act, and any pleading or statement of issues
in an arbitration, if any, states the ground upon which the lessor, in good faith, seeks to recover possession,
increase rent, or do any of the other acts described in subdivision (a) or (d). If the statement is controverted,
the lessor shall establish its truth at the trial or other hearing.
(h) Any lessor or agent of a lessor

who violates this section shall be liable to the lessee in a civil action for all of
the following:
(1) The actual damages sustained by the lessee.
(2) Punitive damages in an amount of not less than one hundred dollars ($100) nor more than two thousand
dollars ($2,000) for each retaliatory act where the lessor or agent has been guilty of fraud, oppression, or malice
with respect to that act.
(i) In any action brought for damages for retaliatory eviction, the court shall award reasonable attorney’s fees to
the prevailing party if either party requests attorney’s fees upon the initiation of the action.
(j) The remedies provided by this section shall be in addition to any other remedies provided by statutory or
decisional law.
(k) A lessor does not violate subdivision (c) or (e) by complying with any legal obligation under any federal
government program that provides for rent limitations or rental assistance to a qualified tenant.
(l) This section shall become operative on October 1, 2021.
3273.1. For purposes of this title:
Case 2:21-cv-01394-JAM-JDP
(a) (1) “Borrower” means any of the following: Document 1 Filed 08/05/21 Page 21 of 52
(A) A natural person who is a mortgagor or trustor or a confirmed successor in interest, as defined in Section
1024.31 of Title 12 of the Code of Federal Regulations.
(B) An entity other than a natural person only if the secured property contains no more than four dwelling units
and is currently occupied by one or more residential tenants.
(2) “Borrower” shall not include an individual who has surrendered the secured property as evidenced by either a
letter confirming the surrender or delivery of
the keys to the property to the mortgagee, trustee, beneficiary, or
authorized agent.
(3) Unless the property securing the mortgage contains one or more deed-restricted affordable housing units or
one or more affordable housing units subject to a regulatory restriction limiting rental rates that is contained in
an agreement with a government agency, the following mortgagors shall not be considered a “borrower”:
(A) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
(B) A corporation.
(C) A limited liability company in which at least one member is a corporation.
(4) “Borrower” shall also mean a person who holds a power of attorney for a borrower
described in paragraph
(1).
(b) “Effective time period” means the time period between the operational date of this title and December 1,
2021.
(c) (1) “Mortgage servicer” or “lienholder” means a person or entity who directly services a loan or who is
responsible for interacting with the borrower, managing the loan account on a daily basis, including collecting
and crediting periodic loan payments, managing any escrow account, or enforcing the note and security
instrument, either as the current owner of the promissory note or as the current owner’s authorized agent.
(2) “Mortgage servicer” or
“lienholder” also means a subservicing agent to a master servicer by contract.
(3) “Mortgage servicer” shall not include a trustee, or a trustee’s authorized agent, acting under a power of sale
pursuant to a deed of trust.
SEC. 7. Section 116.223 of the Code of Civil Procedure is amended to read:
116.223. (a) The Legislature hereby finds and declares as follows:
(1) There is anticipated to be an unprecedented number of claims arising out of nonpayment of residential rent
that occurred between March 1, 2020, and September 30, 2021, related to the COVID-19 pandemic.
(2) These disputes are of special importance to the parties and of significant social and economic consequence
collectively as the people of the State of California grapple with the health, economic, and social impacts of the
COVID-19
pandemic.
(3) It is essential that the parties have access to a judicial forum to resolve these disputes expeditiously,
inexpensively, and fairly.
(4) It is the intent of the Legislature that landlords of residential real property and their tenants have the option
to litigate disputes regarding rent which is unpaid for the time period between March 1, 2020, and September
30, 2021, in the small claims court. It is the intent of the Legislature that the jurisdictional limits of the small
claims court not apply to these disputes over COVID-19 rental debt.
(b) (1) Notwithstanding paragraph (1) of

subdivision (a) Section 116.220, Section 116.221, or any other law, the
small claims court has jurisdiction in any action for recovery of COVID-19 rental debt, as defined in Section
1179.02, and any defenses thereto, regardless of the amount demanded.
(2) In an action described in paragraph (1), the court shall reduce the damages awarded for any amount of
COVID-19 rental debt sought by payments made to the landlord to satisfy the COVID-19 rental debt, including
payments by the tenant, rental assistance programs, or another third party pursuant to paragraph (3) of
subdivision (a) of Section 1947.3 of the Civil Code.
(3) An Case
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Section Page 22
1179.02, brought of 52 to this
pursuant
subdivision shall not be commenced before
November 1, 2021.
(c) Any claim for recovery of COVID-19 rental debt, as defined in Section 1179.02, shall not be subject to
Section 116.231, notwithstanding the fact that a landlord of residential rental property may have brought two or
more small claims actions in which the amount demanded exceeded two thousand five hundred dollars ($2,500)
in any calendar year.
(d) This section shall remain in effect until October 1, 2025, and as of that date is repealed.
871.10. (a) In any action seeking recovery of COVID-19 rental debt, as defined in Section 1179.02, the plaintiff
shall, in addition to any other requirements provided by law, attach to the complaint documentation showing that
the plaintiff has made a good faith effort to investigate whether governmental rental assistance is available to
the tenant, seek governmental rental assistance for the tenant, or cooperate with the tenant’s efforts to obtain
rental assistance from any governmental entity, or other third party pursuant to paragraph (3) of subdivision (a)
of Section 1947.3 of the Civil Code.
(b) In
an action subject to subdivision (a), the court may reduce the damages awarded for any amount of
COVID-19 rental debt, as defined in Section 1179.02, sought if the court determines that the landlord refused to
obtain rental assistance from the state rental assistance program created pursuant to Chapter 17 (commencing
with Section 50897) of Part 2 of Division 31 of the Health and Safety Code, if the tenant met the eligibility
requirements and funding was available.
(c) An action to recover COVID-19 rental debt, as defined in Section 1179.02, that is subject to this section shall
not be commenced before November 1, 2021.
(d) Subdivisions (a) through

(c), inclusive, shall not apply to an action to recover COVID-19 rental debt, as
defined in Section 1179.02, that was pending before the court as of January 29, 2021.
(e) Except as provided in subdivision (g), any action to recover COVID-19 rental debt, as defined in Section
1179.02, that is subject to this section and is pending before the court as of January 29, 2021, shall be stayed
until
November 1, 2021.
(f) This section shall not apply to any unlawful detainer action to recover possession pursuant to Section 1161.
(g) (1) Actions for breach of

contract to recover rental debt that were filed before October 1, 2020, shall not be
stayed and may proceed.
(2) This subdivision does not apply to actions filed against any person who would have qualified under the rental
assistance funding provided through the Secretary of the Treasury pursuant to Section 501 of Subtitle A of Title
V of Division N of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260) if the person’s
household income is at or below 80 percent of the area median income for the 2020 or 2021 calendar year.
871.11. (a) Notwithstanding any other law, in any action to recover COVID-19 rental debt, as defined in Section
1179.02, brought as a limited or unlimited civil case, the court shall not, under ordinary circumstances, award
reasonable attorneys’ fees to a prevailing party that exceed the following amounts:
(1) If the matter is uncontested, five hundred dollars ($500).
(2) If the matter is contested, one thousand dollars ($1,000).
(b) In determining whether a case was litigated under ordinary circumstances, the court may consider the
following:
(1) The number and complexity of

pretrial and posttrial motions.
(2) The nature and extent of any discovery performed.
(3) Whether the case was tried by jury or by the court.
(4) The length of the trial.

(5) AnyCase 2:21-cv-01394-JAM-JDP
other factor the court, in its discretion, Document
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whether the tenant oflandlord,
52 or
both the tenant and the landlord, would have been eligible to receive a rental assistance payment from the
governmental entity, or other third party pursuant to paragraph (3) of subdivision (a) of Section 1947.3 of the
Civil Code.
(c) Nothing in this section shall be interpreted to entitle the prevailing party to an award of reasonable attorneys’
fees if that award is not otherwise provided for by law or
agreement.
(d) This section shall remain in effect until October 1, 2025, and as of that date is repealed.
871.12. This chapter shall remain in effect until October 1, 2027, and as of the date is repealed.
SEC. 11. Section 1161.2 of the Code of Civil Procedure, as amended by Section 11 of Chapter 2 of the Statutes
of 2021, is amended to read:
1161.2. (a) (1) The clerk shall allow access to limited civil case records filed under this chapter, including the court
file, index, and register of actions, only as follows:
(A) To a party to the action, including a party’s attorney.
(B) To a person who provides the clerk with the names of at least one plaintiff and one defendant and the
address of the premises, including the apartment or unit number, if any.
(C) To a resident of the premises who provides the clerk with the name of one of the parties or the case number
and shows proof of residency.
(D) To a person by order of the court, which may be granted ex parte, on a showing of good cause.
(E) Except as provided in subparagraph (G), to any person by order of the court if judgment is entered for the
plaintiff after trial more than 60 days since the filing of the complaint. The court shall issue the order upon
issuing judgment for the plaintiff.
(F) Except as provided in subparagraph (G), to any other person 60 days after the complaint has been filed if the
plaintiff prevails in the action within 60 days of the filing of the complaint, in which case the clerk shall allow
access to any court records in the action. If a default or default judgment is set aside more than 60 days after
the complaint has been filed, this section shall apply as if the complaint had been filed on the date the default or
default judgment is set aside.
(G) (i) In the case of a complaint involving residential property based on Section 1161a as indicated in the
caption of the complaint, as required in subdivision (c) of Section 1166, to any other person, if 60 days have
elapsed since the complaint was filed with the court, and, as of that date, judgment against all defendants has
been entered for the plaintiff, after a trial.
(ii) Subparagraphs (E) and (F) shall not apply if the plaintiff filed the action between March 4, 2020, and
September 30, 2021, and the action is based on an alleged default in the payment of rent.
(2) This section shall not be

construed to prohibit the court from issuing an order that bars access to the court
record in an action filed under this chapter if the parties to the action so stipulate.
(b) (1) For purposes of this section, “good cause” includes, but is not limited to, both of the following:
(A) The gathering of newsworthy facts by a person described in Section 1070 of the Evidence Code.
(B) The gathering of evidence by a party to an unlawful detainer action solely for the purpose of making a
request for judicial notice pursuant to subdivision (d) of Section 452 of the Evidence Code.
(2) It is the intent of the Legislature that a simple procedure be established to request the ex parte order
described in subparagraph (D) of paragraph (1) of
subdivision (a).
(c) Upon the filing of a case so restricted, the court clerk shall mail notice to each defendant named in the
action. The notice shall be mailed to the address provided in the complaint. The notice shall contain a statement
that an unlawful detainer complaint (eviction action) has been filed naming that party as a defendant, and that
access to the court file will be delayed for 60 days except to a party, an attorney for one of the parties, or any
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defendant the action
and provides to the clerk the address, including any applicable apartment, unit, or space number, of the subject
premises, or (2) provides to the clerk the name of one of the parties in the action or the case number and can
establish through proper identification that the person lives at the subject premises. The notice shall also contain
a statement that access to the court
index, register of actions, or other records is not permitted until 60 days
after the complaint is filed, except pursuant to an order upon a showing of good cause for access. The notice
shall contain on its face the following information:
(1) The name and telephone number of the county bar association.
(2) The name and telephone number of any entity that requests inclusion on the notice and demonstrates to the
satisfaction of the court that it has been certified by the State Bar of California as a lawyer referral service and
maintains a panel of attorneys qualified in the practice of landlord-tenant law pursuant to the minimum
standards for a lawyer referral service established by the State Bar of California and Section 6155 of the
Business and Professions Code.
(3) The following statement:
“The State Bar of California certifies lawyer referral services in California and publishes a list of certified lawyer
referral services organized by county. To locate a lawyer referral service in your county, go to the State Bar’s
internet website at www.calbar.ca.gov or call 1-866-442-2529.”
(4) The name and telephone number of an office or offices funded by the federal Legal Services Corporation or
qualified legal services projects that receive funds distributed pursuant to Section 6216 of the Business and
Professions Code that provide legal services to low-income persons in the county in which the action is filed. The
notice shall state that these telephone numbers may be called for legal advice regarding the case. The notice
shall be issued between 24 and 48 hours of the filing of the complaint, excluding weekends and
holidays. One
copy of the notice shall be addressed to “all occupants” and mailed separately to the subject premises. The
notice shall not constitute service of the summons and complaint.
(5) The following statement, for a notice sent out pursuant to this section between October 1, 2021 and March
31, 2022:
“IMPORTANT NOTICE FROM THE STATE OF CALIFORNIA – YOU MUST TAKE ACTION TO AVOID AN EVICTION: As
part of the state’s COVID-19 relief plan, money has been set aside to help renters who have fallen behind on
rent or utility payments.
If you are behind on rent or utility payments, YOU SHOULD COMPLETE A RENTAL ASSISTANCE APPLICATION
IMMEDIATELY! It is free and simple to apply. Citizenship or immigration status does not matter.
You can find out how to start your application by calling 1-833-430-2122 or visiting http://housingiskey.com
right away.”
(d) Notwithstanding any other law, the court shall charge an additional fee of fifteen dollars ($15) for filing a first
appearance by the plaintiff. This fee shall be added to the uniform filing fee for actions filed under this chapter.
(e) This section does not apply to a case that seeks to terminate a mobilehome park tenancy if the statement of
the character of the proceeding in the caption of the complaint clearly indicates that the complaint seeks
termination of a mobilehome park tenancy.
(f) This section does not alter any provision of the Evidence Code.
SEC. 12. Section 1161.2 of the Code of Civil Procedure, as amended by Section 12 of Chapter 2 of the Statutes
of 2021, is repealed.
SEC. 13. Section 1161.2.5 of the Code of Civil Procedure is amended to read:
1161.2.5. (a) (1) Except as provided in Section 1161.2, the clerk shall allow access to civil case records for actions
seeking recovery of COVID-19 rental debt, as defined in Section 1179.02, including the court file, index, and
register of actions, only as follows:
(A) To aCase 2:21-cv-01394-JAM-JDP

party to Document
the action, including a party’s attorney. 1 Filed 08/05/21 Page 25 of 52
(B) To a person who provides the clerk with the names of at least one plaintiff and one defendant.
(C) To a resident of the premises for which the COVID-19 rental debt is owed who provides the clerk with the
name of one of the parties or the case number and shows proof of residency.
(D) To a person by order of the court, which may be granted ex parte, on a showing of good cause.
(2) To give the court notice that access to the records in an action is limited, any complaint or responsive
pleading in a case subject to this section shall include on either the first page of the pleading or a cover page,
the phrase “ACTION FOR RECOVERY OF COVID-19 RENTAL DEBT AS DEFINED UNDER SECTION 1179.02” in bold,
capital letters, in 12 point or larger font.
(3) The Judicial Council shall develop forms for parties to utilize in actions brought pursuant to Section 116.223
and in civil actions for recovery of COVID-19 rental debt as defined in Section 1179.02. The forms shall provide
prominent notice on the first page that access to the
records in the case is limited pursuant to this section.
(b) (1) For purposes of this section, “good cause” includes, but is not limited to, both of the following:
(A) The gathering of newsworthy facts by a person described in Section 1070 of the Evidence Code.
(B) The gathering of evidence by a party to a civil action solely for the purpose of making a request for judicial
notice pursuant to subdivision (d) of Section 452 of the Evidence Code.
(2) It is the intent of the Legislature that a simple procedure be established to request the ex parte order
described in subparagraph (D) of paragraph (1) of subdivision (a).
(c) This section does not

alter any provision of the Evidence Code.
1179.02. For purposes of this chapter:
(a) “Covered time period” means the time period between March 1, 2020, and September 30, 2021.
(b) “COVID-19-related financial distress” means any of the following:
(1) Loss of income caused by the COVID-19 pandemic.
(2) Increased out-of-pocket expenses directly related to performing essential work during the COVID-19
pandemic.
(3) Increased expenses directly related to the health impact of the COVID-19 pandemic.
(4) Childcare responsibilities or responsibilities to care for an elderly, disabled, or sick family member directly
related to the COVID-19 pandemic that limit a tenant’s ability to earn income.
(5) Increased costs for childcare or attending to an elderly, disabled, or sick family member directly related to
the COVID-19 pandemic.
(6) Other circumstances related to the COVID-19 pandemic that have reduced a tenant’s income or increased a
tenant’s expenses.
(c) “COVID-19 rental debt” means unpaid rent or any other unpaid financial obligation of a tenant under the
tenancy that came due during the covered time
period.
(d) “Declaration of COVID-19-related financial distress” means the following written statement:
I am currently unable to pay my rent or other financial obligations under the lease in full because of one or more
of the following:
1. Loss of income caused by the COVID-19 pandemic.
2. Increased out-of-pocket expenses directly related to performing essential work during the COVID-19
pandemic.
Caseexpenses
3. Increased 2:21-cv-01394-JAM-JDP Document
directly related to health impacts of the 1 Filed pandemic.
COVID-19 08/05/21 Page 26 of 52
4. Childcare responsibilities or responsibilities to care for an elderly, disabled, or sick family member directly
related to the COVID-19 pandemic that limit my ability to earn income.
5. Increased costs for

childcare or attending to an elderly, disabled, or sick family member directly related to the
COVID-19 pandemic.
6. Other circumstances related to the COVID-19 pandemic that have reduced my income or increased my
expenses.
Any public assistance, including unemployment insurance, pandemic unemployment assistance, state disability
insurance (SDI), or paid family leave, that I have received since the start of the COVID-19 pandemic does not
fully make up for my loss of income and/or increased expenses.
Signed under penalty of perjury:
Dated:
(e) “Landlord” includes all of the following or the agent of any of the following:
(1) An owner of residential real property.
(2) An owner of a residential rental unit.
(3) An owner of a mobilehome park.
(4) An owner of a mobilehome park space or lot.
(f) “Protected time period” means the time period between March 1, 2020, and August 31, 2020.
(g) “Rental payment” means rent or any other financial obligation of a tenant under the tenancy.
(h) “Tenant” means any natural person who hires real property except any of the following:
(1) Tenants of commercial property, as defined in subdivision (c) of Section 1162 of the Civil Code.
(2) Those persons whose occupancy is described

in subdivision (b) of Section 1940 of the Civil Code.
(i) “Transition time period” means the time period between September 1, 2020, and September 30, 2021.
1179.03. (a) (1) Any notice that demands payment of COVID-19 rental debt served pursuant to subdivision (e) of
Section 798.56 of the Civil Code or paragraph (2) or (3) of Section 1161 shall be modified as required by this
section. A notice which does not meet the requirements of this section, regardless of when the notice was
issued, shall not be sufficient to establish a cause of action for unlawful detainer or a basis for default judgment.
(2) Any case based solely on a notice that demands payment of COVID-19 rental debt served pursuant to
subdivision (e) of Section 798.56 of the Civil Code or paragraph (2) or (3) of Section 1161 may be dismissed if
the notice does not meet the requirements of this section, regardless of when the notice was
issued.
(3) Notwithstanding paragraphs (1) and (2), this section shall have no effect if the landlord lawfully regained
possession of the property or obtained a judgment for possession of the property before the operative date of
this section.
(b) If the notice demands payment of rent that came due during the protected time period, as defined in Section
1179.02, the notice shall comply with all of the following:
(1) The time period in which the tenant may pay the amount due or deliver possession of the property shall be
no shorter than 15 days, excluding Saturdays, Sundays, and other judicial holidays.
(2) The notice shall set forth the amount of rent demanded and the date each amount became due.
(3) The notice shall advise the tenant that the tenant cannot be evicted for failure to comply with the notice if
the tenant delivers a signed declaration of COVID-19-related financial distress to the landlord on or before the
Case
date that 2:21-cv-01394-JAM-JDP
the notice Document
to pay rent or quit or notice 1 Filed or
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quit expires, 27ofofthe52methods
by any
specified in subdivision (f).
(4) The notice shall include the following text in at least 12-point font:
“NOTICE FROM THE STATE OF CALIFORNIA: If you are unable to pay the amount demanded in this notice, and
have decreased income or increased expenses due to COVID-19, your landlord will not be able to evict you for
this missed payment if you sign and deliver the declaration form included with your notice to your landlord within
15 days, excluding Saturdays, Sundays, and other judicial holidays, but you will still
owe this money to your
landlord. If you do not sign and deliver the declaration within this time period, you may lose the eviction
protections available to you. You must return this form to be protected. You should keep a copy or picture of the
signed form for your records.
You will still owe this money to your landlord and can be sued for the money, but you cannot be evicted from
your home if you comply with these requirements. You should keep careful track of what you have paid and any
amount you still owe to protect your rights and avoid future disputes. Failure to respond to this notice may result
in an unlawful detainer action (eviction) being filed against you.
For information about legal resources that may be available to you, visit lawhelpca.org.”
(c) If the notice demands payment of rent that came due during the transition time period, as defined in
Section
1179.02, the notice shall comply with all of the following:
no shorter than 15 days, excluding Saturdays, Sundays, and other judicial holidays.
(2) The notice shall set forth the amount of rent demanded and the date each amount became due.
(3) The notice shall advise the tenant that the tenant will not be evicted for failure to comply with the notice,
except as allowed by this chapter, if the tenant delivers a signed declaration of COVID-19-related financial
distress to the landlord on or before the date the notice to pay rent or quit or notice to perform covenants or quit
expires, by any of the methods specified in subdivision (f).
(4)
For notices served before February 1, 2021, the notice shall include the following text in at least 12-point
type:
have decreased income or increased expenses due to COVID-19, you may sign and deliver the declaration form
included with your notice to your landlord within 15 days, excluding Saturdays, Sundays, and other judicial
holidays, and your landlord will not be able to evict you for this missed payment so long as you make the
minimum payment (see below). You will still owe this money to your landlord. You should keep a copy or picture
of the signed form for your records.
If you provide the declaration form to your landlord as described above AND, on or before January 31, 2021, you
pay an amount that equals at least 25 percent of each rental payment that came due or will come due during the
period between September 1,
2020, and January 31, 2021, that you were unable to pay as a result of decreased
income or increased expenses due to COVID-19, your landlord cannot evict you. Your landlord may require you
to submit a new declaration form for each rental payment that you do not pay that comes due between
September 1, 2020, and January 31, 2021.
For example, if you provided a declaration form to your landlord regarding your decreased income or increased
expenses due to COVID-19 that prevented you from making your rental payment in September and October of
2020, your landlord could not evict you if, on or before January 31, 2021, you made a payment equal to 25
percent of September’s and October’s rental payment (i.e., half a month’s rent). If you were unable to pay any of
the rental payments that came due between September 1, 2020, and January 31, 2021, and you provided your
landlord with the declarations in response to each 15-day notice your landlord sent to you during that time
period, your landlord could not evict you if, on or before January 31, 2021, you paid your landlord an amount
equal to 25 percent of all the rental payments due from September through January (i.e., one and a quarter
month’s rent).
You will still owe the full amount of the rent to your landlord, but you cannot be evicted from your home if you
comply with these requirements. You should keep careful track of what you have paid and any amount you still
owe to protect your rights and avoid future disputes. Failure to respond to this notice may result in an unlawful
detainer action (eviction) being filed against you.
For information Document
about legal resources that may be 1 Filed
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visit lawhelpca.org.” 28 of 52
(5) For notices served on or after February 1, 2021, and before July 1, 2021,
the notice shall include the
following text in at least 12-point type:
have decreased income or increased expenses due to COVID-19, you may sign and deliver the declaration form
included with your notice to your landlord within 15 days, excluding Saturdays, Sundays, and other judicial
holidays, and your landlord will not be able to evict you for this missed payment so long as you make the
minimum payment (see below). You will still owe this money to your landlord. You should keep a copy or picture
of the signed form for your records.
If you provide the declaration form to your landlord as described above AND, on or before June 30, 2021, you
pay an amount that equals at least 25 percent of each rental payment that came due or will come due during the
period between September 1, 2020, and June 30, 2021,
that you were unable to pay as a result of decreased
income or increased expenses due to COVID-19, your landlord cannot evict you. Your landlord may require you
to submit a new declaration form for each rental payment that you do not pay that comes due between
September 1, 2020, and June 30, 2021.
If you were unable to pay any of the rental payments that came due between September 1, 2020, and June 30,
2021, and you provided your landlord with the declarations in response to each 15-day notice your landlord sent
to you during that time period, your landlord could not evict you if, on or before June 30, 2021, you paid your
landlord an amount equal to 25 percent of all the rental payments due from September 2020 through June 2021.
You will still owe the full amount of the rent to your landlord, but you cannot be evicted from your home if you
comply with these requirements. You should keep careful track of what you have paid
and any amount you still
owe to protect your rights and avoid future disputes. Failure to respond to this notice may result in an unlawful
detainer action (eviction) being filed against you.
YOU MAY QUALIFY FOR RENTAL ASSISTANCE. In addition to extending these eviction protections, the State of
California, in partnership with federal and local governments, has created an emergency rental assistance
program to assist renters who have been unable to pay their rent and utility bills as a result of the COVID-19
pandemic. This program may be able to help you get caught up with past-due rent. Additionally, depending on
the availability of funds, the program may also be able to assist you with making future rental payments.
While not everyone will qualify for this assistance, you can apply for it regardless of your citizenship or
immigration status. There is no charge to apply for or receive this assistance.
Additional information about the extension of the COVID-19 Tenant Relief Act and new state or local rental
assistance programs, including more information about how to qualify for assistance, can be found by visiting
http://housingiskey.com or by calling 1-833-422-4255.
(6) For notices served on or after July 1, 2021, the notice shall include the following text in at least 12-point
type:
NOTICE FROM THE STATE OF CALIFORNIA – YOU MUST TAKE ACTION TO AVOID EVICTION. If you are unable to
pay the amount demanded in this notice because of the COVID-19 pandemic, you should take action right away.
IMMEDIATELY: Sign and return the declaration form included with

your notice to your landlord within 15 days,
excluding Saturdays, Sundays, and other judicial holidays. Sign and return the declaration even if you have done
this before. You should keep a copy or a picture of the signed form for your records.
BEFORE SEPTEMBER 30, 2021: Pay your landlord at least 25 percent of any rent you missed between September
1, 2020, and September 30, 2021. If you need help paying that amount, apply for rental assistance. You will still
owe the rest of the rent to your landlord, but as long as you pay 25 percent by September 30, 2021, your
landlord will not be able to evict you for failing to pay the rest of the rent. You should keep careful track of what
you have paid and any amount you still owe to protect your rights and avoid future disputes.
AS SOON AS POSSIBLE: Apply for rental assistance! As part of California’s COVID-19 relief plan, money has been
set aside to help renters who have fallen
behind on rent or utility payments. If you are behind on rent or utility
payments, YOU SHOULD COMPLETE A RENTAL ASSISTANCE APPLICATION IMMEDIATELY! It is free and simple to
apply. Citizenship or immigration status does notDocument 1 find
matter. You can Filed
out 08/05/21 Page
how to start your 29 of 52
application by calling
1-833-430-2122 or visiting http://housingiskey.com right away.
(d) An unsigned copy of a declaration of COVID-19-related financial distress shall accompany each notice
delivered to a tenant to which subdivision (b) or (c) is applicable. If the landlord was required, pursuant to
Section 1632 of the Civil Code, to provide a translation of the rental contract or agreement in the language in
which the contract or agreement was negotiated, the landlord shall also provide the unsigned copy of a
declaration of COVID-19-related financial distress to the tenant in the language in which the contract or
agreement was negotiated. The Department of Housing and Community Development shall make available an
official translation of the text required by paragraph (4) of subdivision
(b) and paragraphs (4) to (6), inclusive, of
subdivision (c) in the languages specified in Section 1632 of the Civil Code by no later than
July 15, 2021.
(e) If a tenant owes a COVID-19 rental debt to which both subdivisions (b) and (c) apply, the landlord shall serve
two separate notices that comply with subdivisions (b) and (c), respectively.
(f) A tenant may deliver the declaration of COVID-19-related financial distress to the landlord by any of the
following methods:
(1) In person, if the landlord indicates in the notice an address at which the declaration may be delivered in
person.
(2) By electronic transmission, if the landlord indicates an email address in the notice to which the declaration
may be delivered.
(3) Through United States mail to the address indicated by the

landlord in the notice. If the landlord does not
provide an address pursuant to subparagraph (1), then it shall be conclusively presumed that upon the mailing
of the declaration by the tenant to the address provided by the landlord, the declaration is deemed received by
the landlord on the date posted, if the tenant can show proof of mailing to the address provided by the landlord.
(4) Through any of the same methods that the tenant can use to deliver the payment pursuant to the notice if
delivery of the declaration by that method is possible.
(g) Except as provided in Section 1179.02.5, the following shall apply to a tenant who, within 15 days of service
of the notice specified in subdivision (b) or (c), excluding Saturdays, Sundays, and other judicial holidays,
demanding payment of COVID-19 rental debt delivers a declaration of COVID-19-related financial distress to the
landlord
by any of the methods provided in subdivision (f):
(1) With respect to a notice served pursuant to subdivision (b), the tenant shall not then or thereafter be
deemed to be in default with regard to that COVID-19 rental debt for purposes of subdivision (e) of Section
798.56 of the Civil Code or paragraphs (2) and (3) of Section 1161.
(2) With respect to a notice served pursuant to subdivision (c), the following shall apply:
(A) Except as provided by subparagraph (B), the landlord may not initiate an unlawful detainer action before
October 1, 2021.
(B) A tenant
shall not be guilty of unlawful detainer, now or in the future, based upon nonpayment of COVID-19
rental debt that came due during the transition period if, on or before September 30, 2021, the tenant tenders
one or more payments that, when taken together, are of an amount equal to or not less than 25 percent of each
transition period rental payment demanded in one or more notices served pursuant to subdivision (c) and for
which the tenant complied with this subdivision by timely delivering a declaration of COVID-19-related financial
distress to the landlord.
(h) (1) (A) Within the time prescribed in Section 1167, a tenant shall be permitted to file a signed declaration of
COVID-19-related financial distress with the court.
(B) If the tenant files a signed declaration of COVID-19-related financial distress with the court pursuant to this
subdivision, the court shall dismiss the case, pursuant to paragraph (2), if the court finds, after a noticed hearing
on the matter, that the tenant’s failure to return a declaration of COVID-19-related financial distress within the
time required by subdivision (g) was the result of mistake, inadvertence, surprise, or excusable neglect, as those
terms have been interpreted under subdivision (b) of Section 473.
(C) TheCase
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less than five
30notice
days’ of 52and not
more than 10 days’ notice, to be given by the court, and may be held separately or in conjunction with any
regularly noticed hearing in the case, other than a trial.
(2) If the court dismisses the case pursuant to paragraph (1), that dismissal shall be without prejudice as
follows:
(A) If the case was based in whole or in part upon a notice served pursuant to subdivision (b), the court shall
dismiss any cause of action based on the notice served pursuant to subdivision (b).
(B) Before October 1, 2021, if the case is based in whole or in part on a notice served pursuant to subdivision
(c), the court
shall dismiss any cause of action based on the notice served pursuant to subdivision (c).
(C) On or after October 1, 2021, if the case is based in whole or in part on a notice served pursuant to
subdivision (c), the court shall dismiss any cause of action based upon the notice served pursuant to subdivision
(c) if the tenant, within five days of the court’s order to do so, makes the payment required by subparagraph (B)
of paragraph (2) of subdivision (g), provided that if the fifth day falls on a Saturday, Sunday, or judicial holiday
the last day to pay shall be extended to the next court day.
(3) If the court dismisses the case pursuant to this subdivision, the tenant shall not be
considered the prevailing
party for purposes of Section 1032, any attorney’s fee provision appearing in contract or statute, or any other
law.
(i) Notwithstanding any other law, a notice which is served pursuant to subdivision (b) or (c) that complies with
the requirements of this chapter and subdivision (e) of Section 798.56 of the Civil Code or paragraphs (2) and
(3) of Section 1161, as applicable, need not include specific language required by any ordinance, resolution,
regulation, or administrative action adopted by a city, county, or city and county.
SEC. 16. Section 1179.03.5 of the Code of Civil Procedure is amended to read:
1179.03.5. (a) Before October 1, 2021, a court may not find a tenant guilty of an unlawful detainer unless it finds
that one of the following applies:
(1) The tenant was guilty of the unlawful detainer before March 1, 2020.
(2) In response to service of a notice demanding payment of COVID-19 rental debt pursuant to subdivision (e) of
Section 798.56 of the Civil Code or paragraph (2) or (3) of Section 1161, the tenant failed to comply with the
requirements of Section 1179.03.
(3) (A) The unlawful detainer arises because of a termination of tenancy for any of the following:
(i) An at-fault just cause, as defined in paragraph (1) of subdivision (b) of Section 1946.2 of the Civil Code.
(ii) (I) A no-fault just cause, as defined in paragraph (2) of subdivision (b) of Section 1946.2 of the Civil Code,
other than intent to demolish or to substantially remodel the residential real property, as defined in
subparagraph (D) of paragraph (2) of subdivision (b) of Section 1946.2.
(II) Notwithstanding subclause (I), termination of a tenancy based on intent to demolish or to substantially
remodel the residential real property shall be permitted if necessary to maintain compliance with the
requirements of Section 1941.1 of the Civil Code, Section 17920.3 or 17920.10 of the Health and Safety Code,
or any other applicable law governing the habitability of residential rental units.
(iii) The owner of the property has entered into a contract for the sale of that property with a buyer who intends
to occupy the property, and all the requirements of paragraph (8) of subdivision (e) of Section 1946.2 of the Civil
Code have been satisfied.
(B) In an action under this paragraph, other than an action to which paragraph (2) also applies, the landlord
shall be precluded from recovering COVID-19 rental debt in connection with any award of damages.
(b) (1) This section does not require a landlord to assist the tenant to relocate through the payment of relocation
costs if the landlord would not
otherwise be required to do so pursuant to Section 1946.2 of the Civil Code or any
other law.
(2) A landlord who is required to assist the tenant to relocate pursuant to Section 1946.2 of the Civil Code or any
other law, may offset the tenant’s COVID-19 rental debt against their obligation to assist the tenant to relocate.
Case
SEC. 17. 2:21-cv-01394-JAM-JDP
Section Document
1179.04 of the Code of Civil Procedure 1 Filed
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to read: Page 31 of 52
1179.04. (a) On or before September 30, 2020, a landlord shall provide, in at least 12-point type, the following
notice to tenants who, as of September 1, 2020, have not paid one or more rental payments that came due
during the protected time period:
“NOTICE FROM THE STATE OF CALIFORNIA: The California Legislature has enacted the COVID-19 Tenant Relief
Act of 2020 which protects renters who have experienced COVID-19-related financial distress from being evicted
for failing to make rental payments due between March 1, 2020, and January 31, 2021.
“COVID-19-related financial distress” means any of the following:
pandemic.
3. Increased expenses directly related to the health impact of the COVID-19 pandemic.
related to the COVID-19 pandemic that limit your ability to earn income.
5. Increased costs for childcare or attending to an elderly, disabled, or sick family member directly related to the
COVID-19 pandemic.
6. Other circumstances related to the COVID-19 pandemic that have reduced your income or increased your
expenses.
This law gives you the following protections:
1. If you failed to make rental payments

due between March 1, 2020, and August 31, 2020, because you had
decreased income or increased expenses due to the COVID-19 pandemic, as described above, you cannot be
evicted based on this nonpayment.
2. If you are unable to pay rental payments that come due between September 1, 2020, and January 31, 2021,
because of decreased income or increased expenses due to the COVID-19 pandemic, as described above, you
cannot be evicted if you pay 25 percent of the rental payments missed during that time period on or before
January 31, 2021.
You must provide, to your landlord, a declaration under penalty of perjury of your COVID-19-related financial
distress attesting to the decreased income or increased expenses due to the COVID-19 pandemic to be protected
by the eviction limitations described above. Before your landlord can seek to evict you for failing to make a
payment that came due between March 1, 2020, and January 31, 2021,
your landlord will be required to give
you a 15-day notice that informs you of the amounts owed and includes a blank declaration form you can use to
comply with this requirement.
If your landlord has proof of income on file which indicates that your household makes at least 130 percent of
the median income for the county where the rental property is located, as published by the Department of
Housing and Community Development in the Official State Income Limits for 2020, your landlord may also
require you to provide documentation which shows that you have experienced a decrease in income or increase
in expenses due to the COVID-19 pandemic. Your landlord must tell you in the 15-day notice whether your
landlord is requiring that documentation. Any form of objectively verifiable documentation that demonstrates the
financial impact you have experienced is sufficient, including a letter from your employer, an unemployment
insurance record, or medical bills, and may be
provided to satisfy the documentation requirement.
It is very important you do not ignore a 15-day notice to pay rent or quit or a notice to perform covenants or
quit from your landlord. If you are served with a 15-day notice and do not provide the declaration form to your
landlord before the 15-day notice expires, you could be evicted. You could also be evicted beginning February 1,
2021, if you owe rental payments due between September 1, 2020, and January 31, 2021, and you do not pay
an amount equal to at least 25 percent of the payments missed for that time period.
For information about legal resources that may be available to you, visit lawhelpca.org.”
(b) On Case 2:21-cv-01394-JAM-JDP

or before February 28, 2021, a landlord Document
shall provide,1in at
Filed
least08/05/21 Page
12-point type, 32 of 52notice to
the following
tenants who, as of February 1, 2021, have not paid
one or more rental payments that came due during the
covered time period:
“NOTICE FROM THE STATE OF CALIFORNIA: The California Legislature has enacted the COVID-19 Tenant Relief
Act which protects renters who have experienced COVID-19-related financial distress from being evicted for
failing to make rental payments due between March 1, 2020, and June 30, 2021.
pandemic.
4. Childcare responsibilities or responsibilities to care for an elderly,

disabled, or sick family member directly
COVID-19 pandemic.
expenses.
1. If you failed to make rental payments due between March 1, 2020, and August 31, 2020, because you had
2. If you are unable to pay rental payments that come due between September 1, 2020, and June 30, 2021,
because of decreased income or increased expenses
due to the COVID-19 pandemic, as described above, you
cannot be evicted if you pay 25 percent of the rental payments missed during that time period on or before June
30, 2021.
You must provide, to your landlord, a declaration under penalty of perjury of your COVID-19-related financial
payment that came due between March 1, 2020, and June 30, 2021, your landlord will be required to give you a
15-day notice that informs you of the amounts owed and includes a blank declaration form you can use to
If your landlord has proof of income on file which indicates that your household makes at least 130 percent of
the median income for the county where the rental property is located, as
published by the Department of
Housing and Community Development in the Official State Income Limits for 2020, your landlord may also
require you to provide documentation which shows that you have experienced a decrease in income or increase
in expenses due to the COVID-19 pandemic. Your landlord must tell you in the 15-day notice whether your
landlord is requiring that documentation. Any form of objectively verifiable documentation that demonstrates the
financial impact you have experienced is sufficient, including a letter from your employer, an unemployment
insurance record, or medical bills, and may be provided to satisfy the documentation requirement.
landlord before the 15-day notice expires, you could be evicted. You could also be evicted
beginning July 1, 2021
if you owe rental payments due between September 1, 2020, and June 30, 2021, and you do not pay an amount
equal to at least 25 percent of the payments missed for that time period.
YOU MAY QUALIFY FOR RENTAL ASSISTANCE. In addition to extending these eviction protections, the State of
Case
While not 2:21-cv-01394-JAM-JDP
everyone Document
will qualify for this assistance, you can 1 apply
Filedfor08/05/21 Page
it regardless 33 of
of your 52
citizenship or
http://housingiskey.com or by calling 1-833-422-4255.”
(c) On or before July 31, 2021, a landlord shall provide, in at least 12-point type, the following notice to tenants
who, as of July 1, 2021, have not paid one or more rental payments that came due during the covered time
period:
“NOTICE FROM THE STATE OF CALIFORNIA: The California Legislature has extended the COVID-19 Tenant Relief
Act. The law now protects renters who have experienced COVID-19-related financial distress from being
evicted
for failing to make rental payments due between March 1, 2020, and September 30, 2021.
pandemic.
COVID-19 pandemic.
expenses.
1. If you failed to make rental payments due between March 1, 2020, and August 31, 2020, because you had
2. If you are unable to pay rental payments that come due between September 1, 2020, and September 30,
2021, because of decreased income or increased expenses due to the COVID-19 pandemic, as described above,
you cannot be evicted if you pay 25 percent of the rental payments missed during that time period on or before
September 30, 2021.
You must provide, to your landlord, a declaration under penalty of

perjury of your COVID-19-related financial
payment that came due between March 1, 2020, and September 30, 2021, your landlord will be required to give
you a 15-day notice that informs you of the amounts owed and includes a blank declaration form you can use to
If your landlord has proof of income on file that indicates that your household makes at least 130 percent of the
median income for the county where the rental property is located, as published by the Department of Housing
and Community Development in the Official State Income Limits for 2020, your landlord may also require you to
provide documentation that shows that you have experienced a decrease in income or increase in expenses due
to the COVID-19 pandemic.
Your landlord must tell you in the 15-day notice whether your landlord is requiring
that documentation. Any form of objectively verifiable documentation that demonstrates the financial impact you
have experienced is sufficient, including a letter from your employer, an unemployment insurance record, or
medical bills, and may be provided to satisfy the documentation requirement.
landlord before the 15-day notice expires, you could be evicted. You could also be evicted beginning October 1,
2021 if Case 2:21-cv-01394-JAM-JDP

you owe Document
rental payments due between September 1, 12020,
Filed
and 08/05/21 Page
September 30, 34and
2021, of you
52 do not
pay an amount equal to at least 25 percent of the payments missed for that time period.
YOU MAY QUALIFY FOR RENTAL

ASSISTANCE. In addition to extending these eviction protections, the State of
While not everyone will qualify for this assistance, you can apply for it regardless of your citizenship or
http://housingiskey.com
or by calling 1-833-430-2122.”
(d) The landlord may provide the notice required by subdivisions (a) to (c), inclusive, as applicable, in the
manner prescribed by Section 1162 or by mail.
(e) (1) A landlord may not serve a notice pursuant to subdivision (b) or (c) of Section 1179.03 before the
landlord has provided the notice required by
subdivisions (a) to (c), inclusive, as applicable.
(2) The notice required by subdivision (a) may be provided to a tenant concurrently with a notice pursuant to
subdivision (b) or (c) of Section 1179.03 that is served on or before September 30, 2020.
(3) The notice required by subdivision (b) may be provided to a tenant concurrently with a notice pursuant to
subdivision (b) or (c) of Section 1179.03 that is served on or before February 28, 2021.
(4) The notice required by subdivision (c) may be provided to a tenant concurrently with a notice pursuant to
subdivision (b) or (c) of Section 1179.03 that is served on or before September 30, 2021.
1179.05. (a) Any ordinance, resolution, regulation, or administrative action adopted by a city, county, or city and
county in response to the COVID-19 pandemic to protect tenants from eviction is subject to all of the following:
(1) Any extension, expansion, renewal, reenactment, or new adoption of a measure, however delineated, that
occurs between August 19, 2020, and March 31, 2022, shall have no effect before
April 1, 2022.
(2) Any provision which allows a tenant a specified period of time in which to repay COVID-19 rental debt shall
be subject to all of the following:
(A) If the provision in effect on August 19, 2020, required the repayment period to commence on a specific date
on or before May 1, 2022, any extension of that date made after August 19, 2020, shall have no effect.
(B) If the provision in effect on August 19, 2020, required the repayment period to commence on a specific date
after
May 1, 2022, or conditioned commencement of the repayment period on the termination of a proclamation
of state of emergency or local emergency, the repayment period is deemed to begin on May 1, 2022.
(C) The specified period of time during which a tenant is permitted to repay COVID-19 rental debt may not
extend beyond the period that was in effect on August 19, 2020. In addition, a provision may not permit a
tenant a period of time that extends beyond May 31, 2023, to repay COVID-19 rental
debt.
(b) This section does not alter a city, county, or city and county’s authority to extend, expand, renew, reenact, or
newly adopt an ordinance that requires just cause for termination of a residential tenancy or amend existing
ordinances that require just cause for termination of a residential tenancy, consistent with subdivision (g) of
Section 1946.2, provided that a provision enacted or amended after August 19, 2020, shall not apply to rental
payments that came due between March 1, 2020, and March 31, 2022.
(c) The one-year limitation provided in subdivision (2) of Section 1161 is tolled during any time period that a
landlord is or was prohibited by any ordinance,
resolution, regulation, or administrative action adopted by a city,
county, or city and county in response to the COVID-19 pandemic to protect tenants from eviction based on
Caseof2:21-cv-01394-JAM-JDP
nonpayment Document
rental payments from serving a notice 1 Filed
that demands 08/05/21
payment Page
of COVID-19 35 debt
rental of 52pursuant
to subdivision (e) of Section 798.56 of the Civil Code or paragraph (2) of Section 1161.
(d) It is the intent of the Legislature that this section be applied retroactively to August 19, 2020.
(e) The Legislature finds and declares that this section addresses a matter of statewide concern rather than a
municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this
section applies to all cities, including charter cities.
(f) It is the intent of the Legislature that the purpose of this section is
to protect individuals negatively impacted
by the COVID-19 pandemic, and that this section does not provide the Legislature’s understanding of the legal
validity on any specific ordinance, resolution, regulation, or administrative action adopted by a city, county, or
city and county in response to the COVID-19 pandemic to protect tenants from eviction.
1179.07. This chapter shall remain in effect until October 1, 2025, and as of that date is repealed.
SEC. 20. Chapter 6 (commencing with Section 1179.08) is added to Title 3 of Part 3 of the Code of Civil
Procedure, to read:
CHAPTER
6. COVID-19 Rental Housing Recovery Act
1179.08. This chapter shall be known, and may be cited, as the COVID-19 Rental Housing Recovery Act.
1179.09. For purposes of this chapter:
(a) “Approved application” means an application for which a government rental assistance program has verified
applicant eligibility, and the requested funds have been obligated to the applicant for payment.
(b) “COVID-19 recovery period rental debt” means a rental debt of a tenant under a tenancy that came due
between October 1, 2021, and March 31, 2022.
(c) “COVID-19 rental debt” has the same meaning as defined in Section 1179.02.
(d) (1) “Final decision” means either of the following determinations by a government

rental assistance program
regarding an application for rental assistance:
(A) The application is an approved application.
(B) The application is denied for any of the following reasons:
(i) The tenant is not eligible for government rental assistance.
(ii) The government rental assistance program no longer has sufficient rental assistance funds to approve the
application.
(iii) The application for government rental assistance remains incomplete 15 days, excluding Saturdays,
Sundays, and other judicial holidays, after the landlord properly completed the portion of the application that is
the responsibility of the landlord because of failure on the part of the tenant to properly complete the
portion of
the application that is the responsibility of the tenant.
(2) “Final decision” does not include any of the following:
(A) The rejection of an application as incomplete or improperly completed by a landlord.
(B) Notification that an application is temporarily pending further action by the government rental assistance
program or the applicant.
(C) Notification that the landlord or tenant applied to the wrong government rental assistance program for the
property or rental debt at issue.
(e) “Government rental assistance program” means any rental assistance program authorized pursuant to
Chapter 17 (commencing with Section 50897) of Part 2 of Division 31 of the Health and Safety
Code.
Case government
(f) “Pertinent 2:21-cv-01394-JAM-JDP Document
rental assistance program” means 1 Filed 08/05/21
a government Page 36
rental assistance of 52 for the
program
city, county, or city and county in which the property at issue is located.
(g) “Rental debt” means an unpaid rent or other unpaid financial obligation of a tenant under the tenancy that
has come due.
(h) (1) “Rental debt that accumulated due to COVID-19 hardship” means COVID-19 rental debt, COVID-19
recovery period rental debt, or a combination of both, if it accumulated during a tenancy initially established
before October 1, 2021.
(2) (A) For purposes of this subdivision, a tenancy is initially established when the tenants first lawfully occupy
the premises.
(B) Any of the following do not initially establish a tenancy:
(i) The renewal of a periodic tenancy.
(ii) The extension of an existing lease or rental agreement.
(iii) The execution of a new lease or rental agreement with one or more individuals who already lawfully occupy
the premises.
1179.10. (a) A notice for a residential rental property that demands payment of COVID-19 recovery period rental
debt and that is served pursuant to subdivision (e) of Section 798.56 of the Civil Code or paragraph (2) or (3) of
Section 1161 shall be modified as follows:
no shorter than three days, excluding Saturdays, Sundays, and other judicial holidays.
(2) The notice shall include all of the following:
(A) The amount of rent demanded and the date each amount became due.
(B) The telephone number and internet website address of the pertinent government rental assistance program.
(C) The following bold text in at least 12-point font:
“IMPORTANT NOTICE FROM THE STATE OF CALIFORNIA – YOU MUST TAKE ACTION TO AVOID AN EVICTION: As
part of the state’s COVID-19 relief plan, money has been set aside to help renters who have fallen behind on
rent or utility payments.
If you cannot pay the amount demanded in this notice, YOU SHOULD COMPLETE A RENTAL ASSISTANCE
APPLICATION IMMEDIATELY! It is free and simple to apply. Citizenship or immigration status does not matter.
DO NOT DELAY! IF YOU DO NOT COMPLETE YOUR APPLICATION FOR RENTAL ASSISTANCE WITHIN 15 BUSINESS
DAYS, YOUR LANDLORD MAY BE ABLE TO
SUE TO OBTAIN A COURT ORDER FOR YOUR EVICTION.
You can start your application by calling 1-833-430-2122 or visiting http://housingiskey.com.
(D) If the landlord was required, pursuant to Section 1632 of the Civil Code, to provide a translation of the rental
contract or agreement in the language in which the contract or agreement was negotiated, the landlord shall also
provide the text of the notice in subparagraph (C) to the tenant in the language in which the contract or
agreement was negotiated. The Business, Consumer Services, and Housing Agency shall make available on the
http://housingiskey.com internet website an official translation of the text required by subparagraph (C) in the
languages specified in Section 1632 of the Civil Code by no later than September 15, 2021.
(b) (1) A notice that demands payment of COVID-19 recovery period rental debt that does not meet the
requirements of this section is not sufficient to establish a cause of action for unlawful detainer or a basis for
default judgment.
(2) The court, upon its own motion or upon a motion by a defendant in the case, shall dismiss a cause of action
for unlawful detainer that is based on a notice that demands payment of COVID-19 recovery period rental debt if
the notice does not meet the requirements of this section.
(3) A defendant Document
may raise the insufficiency of a 1 Filed
notice pursuant to this08/05/21
section as aPage 37 defense
complete of 52 to an
unlawful detainer.
1179.11. On or after October 1, 2021, and before March 31, 2022, in an unlawful detainer action pertaining to
residential real property and based, in whole or in part, on nonpayment of rental debt that accumulated due to
COVID-19 hardship, all of the following shall apply:
(a) A court shall not issue a summons on a complaint for unlawful detainer that seeks possession of residential
real property based on nonpayment of rental debt that accumulated due to COVID-19 hardship unless the
plaintiff, in addition to any other requirements provided by law, also files any of the following:
(1) Both of the following:
(A) A statement verifying, under

penalty of perjury, that before filing the complaint, the landlord completed an
application for government rental assistance to cover the rental debt demanded from the defendants in the case,
but the application was denied.
(B) A copy of a final decision from the pertinent government rental assistance program denying a rental
assistance application for the property at issue in the case.
(2) A statement, under penalty of perjury, verifying that all of the following are true:
(A) Before filing the complaint, the landlord submitted a completed application, as defined in Section 50897 of
the Health and Safety Code, for rental assistance to the pertinent government rental assistance program to cover
the rental debt demanded from the defendants in the case.
(B) Twenty days have passed since the later of the following:
(i) The date that the landlord submitted the application as described in subparagraph (A).
(ii) The date that the landlord served the tenant with the three-day notice underlying the complaint.
(C) The landlord has not received notice or obtained verification from the pertinent government rental assistance
program indicating that the tenant has submitted a completed application for rental assistance to cover the
rental debt demanded from the defendants in the case.
(D) The landlord has received no communication from the tenant that the tenant has applied for government
rental assistance to cover the unpaid rental debt demanded from the defendants in the case.
(3) A statement, under penalty of perjury, that the rental debt demanded from the defendant in the complaint
accumulated under a tenancy that was initially established, as described in paragraph (2) of subdivision (h) of
Section 1179.09, on or after October 1, 2021.
(b) A statement under penalty of perjury described in subdivision (a) shall be made on a form developed or
revised by the Judicial Council for this purpose if the Judicial Council determines that this requirement is
necessary to accomplish the purpose of the statement.
(c) (1) A judgment or default judgment shall not issue in favor of the plaintiff unless the court finds, upon review
of the pleadings and any other evidence brought before it, that both of the following are true:
(A) Before filing the complaint, the plaintiff completed an application to the pertinent government rental
assistance program for rental assistance to cover the rental debt demanded in the complaint.
(B) The plaintiff’s application for rental assistance was denied because of lack of eligibility, lack of funding, or the
application remained incomplete due to the tenant’s failure to properly complete the portion of the application
that is the responsibility of the tenant for 15 days, excluding Saturdays, Sundays, and other judicial holidays,
after the landlord properly completed the portion of the application that is responsibility of the landlord.
(2) In making its findings pursuant to this paragraph, the court may take judicial notice of information available
to the court pursuant to Section 1179.12.
(d) In addition to the summons, the complaint, and any other required document, the plaintiff shall serve the
defendant with copies of the statement and final decision filed with the court pursuant to subdivision (a). The
absence of these copies shall be sufficient grounds to grant a motion to quash service of the summons.
Case
(e) If the 2:21-cv-01394-JAM-JDP
defendant Document
contests whether the plaintiff has met the1requirements
Filed 08/05/21 Page
of subdivision (c),38
theof 52 shall
plaintiff
bear the burden of proving to the court that the plaintiff has met those requirements.
(f) The Legislature finds and declares all of the following:
(1) For rental debt that accumulated due to COVID-19 hardship that was incurred on or after October 1, 2021,
and before March 31, 2022, a landlord must be compensated for all of the unpaid rent demanded in the notice
that
forms the basis of the complaint in order to prevent an unlawful detainer judgment based on that complaint.
(2) That for rental debt that accumulated due to COVID-19 hardship that was incurred on or after September 1,
2020, and before September 30, 2021, a landlord must be provided 25 percent of the unpaid rent demanded in
the notice that forms the basis of the complaint before October 1, 2021, in order to prevent an unlawful detainer
judgment based on that complaint.
(g) A summons on a complaint issued pursuant to paragraph (3) of subdivision (a) shall not be construed to
subject the complaint to the requirements of this chapter.
1179.12. (a) Each government rental assistance program shall, by no later than September 15, 2021, develop
mechanisms, including, but not limited to, telephone or online access, through which landlords, tenants, and the
court may do both of the following:
(1) Verify the status of an application for rental assistance based upon the property address and a unique
application number.
(2) Obtain copies of any determination on an application for rental assistance. A determination shall indicate all
of the following:
(A) The name of the tenant that is the subject of the application.
(B) The address of the property that is the subject of the application.
(C) Whether the application has been approved or denied.
(D) If the application has been approved, then the amount of the payment that has been approved and the
period and type of rental debt to which the amount corresponds.
(E) If the application has been denied, the reason for the denial, which shall be any of the following:
(i) The tenant is ineligible for government rental assistance.
(ii) The government rental assistance program no longer has sufficient funds to approve the application.
(iii) The application remained incomplete 15 days, excluding Saturdays, Sundays, and other judicial holidays,
after it was initially submitted because of failure on the part of the tenant to provide required information.
(b) A government rental assistance program that does not comply with this section shall be deemed ineligible to
receive further block grant allocations pursuant to Section 50897.2 of, or 50897.2.1 of, the Health and Safety
Code.
(c) It shall be unlawful for a person to access or use any information available pursuant to subdivision (a) for any
purpose other than to determine the status of an application for assistance.
1179.13. (a) A court shall prevent the forfeiture of a lease or rental agreement, whether written or oral, and
whether or not the tenancy has terminated, and restore the tenant to the former estate or tenancy, if necessary,
if all of the following apply:
(1) The complaint for unlawful detainer is based on a demand for payment of rental debt that accumulated due
to COVID-19 financial hardship.
(2) (A) The tenant submits verification to the court that a government rental assistance program has approved
an application for rental assistance corresponding to part or all of the rental debt demanded in the complaint.
(B) The verification described in this paragraph shall be in the form of either of the following:
(i) A copy of a final decision from the government rental assistance program showing the property address, the
amount of payment approved, and the time period for which assistance was provided.
(ii) The Case 2:21-cv-01394-JAM-JDP

property Document
address and a unique application 1 Filed
number to enable 08/05/21
the court to obtainPage 39 of of
confirmation 52the final
decision, the corresponding property address, the amount of the payment approved, and the time period for
which assistance was provided.
(3) The approved payment from the rental assistance program, together with any additional payments made by
the tenant, constitute full payment of the rental debt demanded in the complaint.
(b) An application
pursuant to this section may be made only at any time before restoration of the premises to
the landlord.
(c) (1) An application pursuant to this section shall consist of verification that a government rental assistance
program has approved an application for rental assistance corresponding to the rental debt demanded in the
complaint.
(2) The verification described in this subdivision shall consist of either of the following:
(A) A copy of the final decision from the government rental assistance program approving the application,
showing the property address, and indicating the amount of payment approved.
(B) A property address and unique application number to enable the court to obtain confirmation of the final
decision, the
corresponding property address, and the amount of the payment approved.
(3) (A) Except as provided in subparagraph (B), a tenant shall not be required to file any documentation not
described in paragraph (1) or pleading with the court in order to apply for relief pursuant to this section.
(B) The verification required by this subdivision shall be provided on or accompanied by a form developed or
revised by the Judicial Council for this purpose if the Judicial Council determines that this requirement is
necessary to accomplish the purpose of the verification.
(d) Upon the filing of an application for relief pursuant to this section, the court shall do both of the following:
(1) Set a hearing on the matter on not less than 5 days’

notice and not more than 10 days’ notice to the parties,
to be given by the court, and to be held separately or in conjunction with any regularly noticed hearing or trial in
the case.
(2) Stay the action if no judgment has been entered in the case, immediately stay execution of any writ of
possession issued in the case through the date of the hearing, and notify the sheriff accordingly.
(e) (1) At the hearing set pursuant to paragraph (1) of subdivision (d), the court shall rule upon the application
for relief pursuant to this section in one of the following ways:
(A) If the tenant does not qualify for relief pursuant to subdivision (a), the court shall deny the application. A
denial pursuant to this subparagraph may be used as evidence in an unlawful detainer action between the
parties.
(B) If the tenant qualifies for relief pursuant to subdivision (a), and the plaintiff has received all of the payments
described in paragraph (3) of subdivision (a), then the court shall grant the application, set aside any judgment
issued in the case, and dismiss the case.
(C) If the tenant qualifies for relief pursuant to subdivision (a), and the plaintiff has not received all of the
payments described in paragraph (3) of subdivision (a), the court shall do all of the following:
(i) Set a followup hearing to be held within 15 days, excluding Saturdays, Sundays, and other judicial holidays.
(ii) Extend the stay of the action through the date of that followup hearing.
(iii) Extend the stay of

execution of any writ of possession in the case through the date of that followup hearing.
(D) At any followup hearing pursuant to subparagraph (C), the court shall issue one of the following orders:
(i) If the government rental assistance program has withdrawn the approval of rental assistance, then the court
shall deny the application.
(ii) If the plaintiff has received all of the payments described in paragraph (3) of subdivision (a), then the court
shall grant the application, set aside any judgment issued in the case, and dismiss the case.
Case
(iii) If the 2:21-cv-01394-JAM-JDP
government Document
rental assistance program 1 Filed
has not withdrawn the08/05/21 Pageassistance,
approval of rental 40 of 52 but the
landlord has not received all of the payments described in paragraph (3) of subdivision (a) because
the rental
assistance program has not yet issued its part of the payment, then the court shall order another followup
hearing in accordance with this subparagraph.
(iv) If the government rental assistance program has not withdrawn the approval of rental assistance, but the
landlord has not received all of the payments described in paragraph (3) of subdivision (a) because the tenant
has not yet paid the tenant’s part of the payment, then the court shall deny the application with prejudice.
(2) If a court grants an application for relief pursuant to this section, the tenant shall not be considered the
prevailing party for purposes of Section 1032, any attorney’s fee provision appearing in contract or statute, or
any other law.
1179.14. If the criteria for issuance of a summons pursuant to subdivision (a) of Section 1179.11 have not been
satisfied within 60 days of the complaint’s filing, the court shall dismiss the action without prejudice.
1179.15. This chapter shall remain in effect until September 30, 2024, and as of that date is repealed.
SEC. 21. Section 50897 of the Health and Safety Code is amended to read:
50897. For purposes of this chapter:
(a) “City” means a city or a city and county. For purposes of this chapter, a city may be organized either under
the general laws of this state or under a charter adopted pursuant to Section 3 of Article XI of the California
Constitution.
(b) “County” means a county, including a county organized under a charter adopted pursuant to Section 3 of
Article XI of the California Constitution, or a city and county.
(c) “Completed application” means an application for which a landlord or eligible household, as applicable, has
provided all the necessary
contact information and documentation required for a government rental assistance
program to initiate a review of the application for eligibility.
(d) “Department” means the Department of Housing and Community Development.
(e) (1) “Eligible household” has the same meaning as defined in Section 501(k)(3) of Subtitle A of Title V of
Division N of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260).
(2) Notwithstanding paragraph (1), for purposes of Round 2, “eligible household” has the same meaning as
defined in Section 3201(f)(2) of Subtitle B of Title III of the American Rescue Plan Act of 2021 (Public Law 117-
2).
(f) “Federally recognized tribe” means an Indian

tribe, as described in Section 501(k)(2)(C) of Subtitle A of Title
V of Division N of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260).
(g) “Grantee” means a

city, including a charter city, a county, including a charter county, or a city and county,
including a charter city and county, that participates in a rental assistance program pursuant to this chapter.
(h) “Option A” means the administrative option grantees utilize pursuant to subparagraphs (A) and (B) of
paragraph (1) of subdivision (b) of Section 50897.3 or subparagraphs (A) and (B) of paragraph (1) of subdivision
(b) of Section 50897.3.1, as applicable.
(i) “Option B” means the administrative option grantees utilize pursuant to Section 50897.2 or 50897.2.1, as
applicable.
(j) “Option C” means the administrative option grantees utilize pursuant to paragraph (2) of subdivision (b) of
Section 50897.3 or paragraph (2) of subdivision (b) of Section 50897.3.1, as applicable.
(k) “Program” means the process for awarding funds for state rental assistance pursuant to this chapter, as
provided in Section 50897.2, 50897.2.1, 50897.3, or 50897.3.1, as applicable.
(l) “Program implementer” means the contracted vendor selected to administer emergency rental assistance
under
the program pursuant to paragraph (1) of subdivision (a) of Section 50897.3.
(m) “Prospective rent payment” means a rent Document 1 Filed
payment eligible 08/05/21
for financial Page
assistance 41 of 52
pursuant to Section
501(c)(2)(A) of Subtitle A of Title V of Division N of the federal Consolidated Appropriations Act, 2021 (Public
Law 116-260).
(n) “Rental arrears”

means rental arrears eligible for financial assistance pursuant to Section 501(c)(2)(A) of
Subtitle A of Title V of Division N of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260).
(o) “Round 1” means the state rental assistance program established by funds provided by Subtitle A of Title V of
Division N of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260).
(p) “Round 2”
means the state rental assistance program established by funds provided by Section 3201 of
Subtitle B of Title III of the federal American Rescue Plan Act of 2021 (Public Law 117-2).
(q) “State reservation table” means the methodology

for allocating the state’s portion of funding for Round 1 and
Round 2 as follows:
(1) (A) With respect to funding received for Round 1, no more than 10 percent for state administration.
(B) Round 1 shall include one hundred fifty million dollars ($150,000,000) total set aside for smaller counties
with a population less than 200,000, allocated based on the proportional share of population from the 2019
federal census data.
(C) The remainder of the state allocation

to be distributed to eligible grantees with a population 200,000 or
greater, based on their proportional share of population from the 2019 federal census data.
(2) (A) With respect to funding for Round 2, no more than 15 percent shall be used for state administration.
(B) Subject to the requirements of this paragraph, Round 2 funding shall include one hundred twenty-five million
dollars ($125,000,000) total set aside for counties with a population less than 200,000, allocated based on their
proportional share of the population from the
2019 federal census data.
(C) The remainder of the state allocation to be distributed to grantees with a population 200,000 or greater,
based on their proportional share of population from the 2019 federal census data.
(D) The department shall pay all grantees an initial payment that is equal to an amount not less than 40 percent
of each grantee’s total allocation provided under this paragraph.
(i) Subsequent payments shall be paid to grantees in tranches up to the full amount of each grantee’s total state
allocation in accordance with a procedure established by the department that shall require that a grantee have
obligated not less than 75 percent of funds provided pursuant to this subparagraph.
(ii) The department shall have the authority to

reallocate unused funds and shall prioritize allocating funds based
on factors that include a grantee’s unmet need, rate of application submissions, rate of attrition, and rate of
expenditures.
(r) “Utilities” means utilities and home energy costs eligible for financial assistance pursuant to Section 501(c)(2)
(A) of Subtitle A of Title V of Division N of the federal Consolidated Appropriations Act, 2021 (Public Law 116-
260).
SEC. 22. Section 50897.1 of the Health and Safety Code is amended to read:
50897.1. (a) (1) Funds available for rental assistance pursuant to this chapter shall consist of state rental
assistance funds made available pursuant to Subtitle A of Title V of Division N of the federal Consolidated
Appropriations Act, 2021 (Public Law 116-260) and Section 3201 of Subtitle B of Title III of the federal American
Rescue Plan Act of 2021 (Public Law 117-2) and shall be administered by the department in accordance with this
chapter and applicable federal law.
(2) Each
grantee shall be eligible to receive an allocation of rental assistance funds, calculated in accordance
with the state reservation table.
(3) The state high-need grantee set aside provided pursuant to Section 3201(a)(2)(D) of Subtitle B of Title III of
the American Rescue Plan Act of 2021 (Public Law 117-2) shall be allocated or administered by the department,
or program implementer, pursuant to applicable federal requirements.
Case rental
(4) Additional 2:21-cv-01394-JAM-JDP
assistance funds allocated to Document 1 the
the state from Filed 08/05/21
United Pagepursuant
States Treasury 42 of 52 to Section
501(d) of Subtitle A of Title V of Division N of the federal Consolidated Appropriations Act, 2021 (Public Law
116-
260) or Section 3201(e) of Subtitle B of Title III of the federal American Rescue Plan Act of 2021 (Public Law
117-2) shall be allocated, at the department’s discretion, with prioritization based on factors that include a
grantee’s unmet need, rate of application submissions, rate of attrition, and rate of expenditures.
(5) Except as otherwise provided in this chapter, funds available for rental assistance administered pursuant to
Section 50897.3 or 50897.3.1 shall consist of state rental assistance funds calculated pursuant to the
state
reservation table.
(b) Funds provided for and administered pursuant to this chapter shall be used in a manner consistent with
federal law, including the prioritization of assistance specified in Section 501(c)(4) of Subtitle A of Title V of
Division N of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260). In addition, in providing
assistance pursuant to this chapter, the department and, if applicable, the program implementer shall prioritize
communities disproportionately impacted by COVID-19, as determined by the department. State prioritization
shall be as follows:
(1) Priority one shall be eligible households, as specified in Section 501(c)(4)

of Subtitle A of Title V of Division N
of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260), to expressly target assistance for
eligible households with a household income that is not more than 50 percent of the area median or any eligible
households that receive a notice described in Section 1179.10 of the Code of Civil Procedure or a summons
described in Section 1179.11 of the Code of Civil Procedure.
(2) Priority two shall be communities disproportionately impacted by COVID-19, as determined by the
department.
(3) Priority three shall be eligible households that are not otherwise prioritized as described in paragraphs (1)
and (2), to expressly include eligible households with a household income that is not more than 80 percent of
the area median income.
(c) (1) Except as otherwise provided in paragraph (2), eligible uses for funds made available to a grantee under
this chapter shall be as follows:
(A) Rental arrears.
(B) Prospective rent payments.
(C) Utilities,
including arrears and prospective payments for utilities.
(D) Any other expenses related to housing as provided in Section 501(c)(2)(A) of Subtitle A of Title V of Division
N of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260).
(E) Any additional use authorized under federal law and guidance.
(2) For purposes of stabilizing households and preventing evictions, rental arrears shall be given priority for
purposes of providing rental assistance pursuant to this chapter.
(3) Remaining funds not used as described in paragraph (2) may be used for any eligible use described in
subparagraphs (B), (C), and (D) of paragraph (1).
(d) Assistance for rental arrears

may be provided as a payment directly to a landlord on behalf of an eligible
household by entering into an agreement with the landlord, subject to both of the following:
(1) Assistance for rental arrears shall be set at compensation of

100 percent of an eligible household’s unpaid
rental debt accumulated on or after April 1, 2020.
(2) (A) Acceptance of a payment made pursuant to this subdivision shall be conditioned on the landlord’s
agreement to accept the payment as payment in full of the rental debt owed by any tenant within the eligible
household for whom rental assistance is being provided for the specified time period. The landlord’s release of
claims pursuant to this subparagraph shall take effect only upon payment being made to the landlord pursuant to
this subdivision.
(B) The
landlord’s agreement to accept payment pursuant to this subdivision as payment in full, as provided in
subparagraph (A), shall include the landlord’s agreement to release any and all claims for nonpayment of rental
debt owed for the specified time period, including a claim for unlawful detainer pursuant to paragraph (2) and
Case 1161
(3) of Section 2:21-cv-01394-JAM-JDP Document
of the Code of Civil Procedure, against any 1 Filed
tenant 08/05/21
within the eligiblePage 43 of
household for52
whom the
rental assistance is being provided.
(e) (1) A member of an eligible household may

directly
apply for rental arrears assistance from the grantee.
Assistance for rental arrears pursuant to this subdivision shall be set at compensation of 100 percent of the
eligible household’s unpaid rental debt accumulated on or after April 1, 2020.
(2) (A) Upon receipt of assistance, the eligible household shall provide the full amount of rental arrears to the
landlord within 15 days, excluding Saturdays, Sundays, and judicial holidays, of receipt of the funds.
(B) (i) If the household does not comply with subparagraph (A), the landlord may charge a late fee not to exceed
the amount that the landlord may charge a tenant for one late rental payment under the terms of the lease or
rental agreement.
(ii) Failure to pay a late fee charged by a landlord pursuant to this subparagraph shall not be grounds for an
unlawful detainer action.
(C) A member of an eligible household

described by this paragraph shall attest under penalty of perjury that the
household will comply with the requirements of this paragraph.
(f) Funds used to provide assistance for prospective rent payments for an eligible household shall
be set at 100
percent of the eligible household’s monthly rent.
(g) (1) When a landlord or tenant submits a completed application, grantees shall provide notification to the
respective parties included in the application.
(2) Upon approval of payment for a landlord or tenant application, as applicable, grantees shall provide
notification to the respective parties included in the application.
(h) (1) Assistance provided under this chapter shall be provided to eligible households or,
if applicable, to
landlords on behalf of eligible households that are currently housed and occupying the residential unit for which
the assistance is requested at the time of the application.
(2) (A) Notwithstanding paragraph (1), eligible households that no longer occupy the residential unit with respect
to which rental assistance has been requested and have demonstrated rental arrears shall be eligible for
assistance.
(B) (i) Subject to clause (ii), assistance provided pursuant to this paragraph shall be prioritized to participating
landlords.
(ii) If the landlord does not participate, payments may be provided directly to the eligible household if
the
eligible household provides any amount received for rental assistance to the landlord. A member of the eligible
household shall attest under penalty of perjury that the household will comply with the requirements of this
clause.
(C) It is the intent of the Legislature for grantees to exercise maximum discretion within the limitations of federal
law and guidance to establish eligibility and documentation requirements for households no longer occupying the
unit in question to ensure funds administered pursuant to this paragraph are deployed in a streamlined manner.
(D) A payment made directly to a participating landlord pursuant to this paragraph shall be considered as
payment in full and shall include the landlord’s agreement to release any and all claims for nonpayment of rental
debt owed for the specified time period, including a claim for unlawful detainer pursuant to
paragraphs (2) and
(3) of Section 1161 of the Code of Civil Procedure.
(i) For purposes of the protections against housing discrimination provided under the California Fair Employment
and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2 of the Government Code),
assistance provided under this chapter shall be deemed to be a “source of income,” as that term is defined in
subdivision (i) of Section 12927 of the Government Code.
(j) (1) Notwithstanding any other law, except as otherwise provided in subdivision (i), assistance provided to an
eligible household for a payment as provided in this chapter or as provided as a direct allocation to grantees
from the Secretary of the Treasury pursuant to Subtitle A of Title V of Division N of the federal Consolidated
Appropriations Act, 2021 (Public Law 116-260)
or Section 3201 of Subtitle B of Title III of the American Rescue
Plan Act of 2021 (Public Law 117-2) shall not be deemed to be income for purposes of the Personal Income Tax
Law (Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code) or used to
Case
determine 2:21-cv-01394-JAM-JDP
the eligibility of an eligible household,Document 1 ofFiled
or any member 08/05/21
an eligible Page
household, 44 state
for any of 52program
or local program financed wholly or in part by state funds.
(2) Notwithstanding any other law, for taxable years beginning on or after January 1, 2020, and before January
1, 2025, gross income shall not include a tenant’s rent liability that is forgiven by a landlord as provided in this
chapter or as rent forgiveness provided through funds grantees received as a direct allocation from the Secretary
of the Treasury pursuant to Subtitle A of Title V of Division N of the federal Consolidated Appropriations Act,
2021
(Public Law 116-260) or Section 3201 of Subtitle B of Title III of the American Rescue Plan Act of 2021
(Public Law 117-2).
(k) (1) The department may adopt, amend, and repeal rules, guidelines, or procedures necessary to carry out
the purposes of this chapter, including guidelines regarding the administration of federal rental assistance funds
received under Subtitle A of Title V of Division N of the federal Consolidated Appropriations Act, 2021 (Public Law
116-260) or the administration of federal rental assistance funds received under Section 3201 of Subtitle B of
Title III of the American Rescue Plan Act of 2021 (Public Law 117-2) that are consistent with the
requirements of
that federal law and any regulations promulgated pursuant to that federal law.
(2) The adoption, amendment, or repeal of rules, guidelines, or procedures authorized by this subdivision is
exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(l) Any interest
that the state, a grantee, or, if applicable, the program implementer derives from the deposit of
funds made available pursuant to this chapter or pursuant to subdivision (e) of Section 925.6 of the Government
Code shall be used to provide additional assistance under this chapter.
(m) Upon notification from the Director of Finance to the Joint Legislative Budget Committee that additional
federal rental assistance resources have been obtained, that assistance may be deployed in a manner consistent
with this chapter. Any statutory provision established by subsequent federal law specific to the administration of
those additional resources shall supersede the provisions contained in this chapter to the extent that there is a
conflict between those
federal statutory provisions and this chapter.
To implement future federal rental
assistance, the department shall make corresponding programmatic changes to effectuate the program in
compliance with federal law.
(n) Notwithstanding any other law, a third party shall be prohibited from receiving compensation for services
provided to an eligible household in applying for or receiving assistance under this chapter, except that this
prohibition shall not apply to any contracted entity that renders those services upon the express authorization by
the department, the program implementer, or a
grantee.
(o) Assistance provided under this chapter shall include a receipt that provides confirmation of payment
that has
been made. The receipt shall include, but not be limited to, the amount of payment or forgiveness, as applicable,
and the time period for which assistance was provided.
The receipt shall be provided to both the eligible
household and the landlord.
(p) (1) The department, program implementer, or grantee, as applicable, that has completed rental assistance
payments subject to the provisions of this section, as amended by Chapter 5 of the Statutes of 2021, shall
provide additional assistance to previous recipients so that total assistance provided is equivalent to 100 percent
of an eligible household’s rental arrears or prospective rent for the period originally requested, as applicable.
(2) To make payments pursuant to this subdivision in a timely manner, additional assistance shall be executed
without the counter signature from the eligible household or landlord.
(q) A grantee may request a change to its administrative option as provided in Round 1 or Round 2, as
applicable, subject to the approval of the department.
(r) (1) A grantee that receives funds and administer rental assistance programs pursuant to this chapter shall
meet the requirements of Chapter 6 (commencing with Section 1179.08) of Title 3 of Part 3 of the Code of Civil
Procedure.
(2) A grantee shall provide notification to the landlord and tenant when either the landlord or the tenant submits
a completed application for rental assistance.
(3) A grantee shall provide notification to the landlord and tenant once a final decision has been rendered. The
notification shall include the total amount of assistance paid and the time period for which assistance was
provided, as applicable.
Case
(4) Failure to 2:21-cv-01394-JAM-JDP
comply with the requirements ofDocument 1 Filed
this subdivision 08/05/21
may result in the Page 45share
grantee’s of 52of funds
received from the state pursuant to Section 50897.2 or 50897.2.1 reverted to the department for reallocation at
the department’s discretion.
(s) For purposes of this

section:
(1) “Rental debt” includes rent, fees, interest, or any other financial obligation under a lease for use and
occupancy of the leased premises, but does not include liability for torts or damage to the property beyond
ordinary wear and tear.
(2) “Specified time period” means the period of time for which payment is provided, as specified in the
agreement entered into with the landlord.
50897.2. (a) (1) A grantee that has a population of 500,000 or greater shall be eligible to receive a block grant
allocation from the department.
(2) A grantee with a population of 499,999 or less, but greater than 200,000, may request an allocation of block
grant funds pursuant to this section, in the form and manner prescribed by the department. The
department
shall grant a request for an allocation of block grant funds pursuant to this paragraph if the grantee attests and,
in the department’s judgment, demonstrates that it has established a program consistent with the requirements
of this chapter and has the capability to implement the resources provided in accordance with applicable state
and federal law, including this chapter and Subtitle A of Title V of Division N of the federal Consolidated
Appropriations Act, 2021 (Public Law 116-260).
(3) A grantee that is not eligible for, or

does not receive, an allocation of block grant funds pursuant to this
section shall receive its proportionate share of funds in accordance with the state reservation table, as provided
in Section 50897.3.
(4) A grantee that receives a block grant pursuant to this section shall attest to the department, in the form and
manner prescribed by the department, that it will distribute assistance equitably and consistent with
demonstrated need within the jurisdiction.
(5) To receive funds pursuant to this section, an applicant shall agree to utilize its direct allocation of assistance
from the Secretary of the Treasury pursuant to Section 501 of Subtitle A of Title V of Division N of the
federal
Consolidated Appropriations Act, 2021 (Public Law 116-260) in a manner consistent with this chapter. Refusal to
comply with this paragraph shall result in the applicant being prohibited from receiving state block grant funds
and may result in the department recouping block grant funds that are spent in a manner inconsistent with this
chapter.
(6) A grantee that receives funds pursuant to this section shall not institute additional programmatic
requirements that may inhibit participation in the rental assistance program.
(7) A
grantee that applies for assistance under this section may apply for an award allocation through an
authorized representative, without its legislative body expressly adopting an ordinance or resolution authorizing
that application, provided that it later authorizes a representative of the eligible grantee with legal authority to
bind the eligible grantee to the terms and conditions of the award before executing the agreement with the
department.
(8) The department shall allocate all funds made available for purposes of this section, in consultation with the
Department of Finance. The initial allocation shall be completed and shared no later than February 19, 2021.
(b) Block grant funds allocated pursuant to this section shall be used for those eligible uses and compensation
requirements specified in, and subject to the applicable
requirements of, Section 50897.1.
(c) The deadlines for the allocation and use of block grant funds pursuant to this section shall be as follows:
(1) A grantee shall request that allocation from the department no later than February 12, 2021. If a grantee
fails to request the allocation by
that date, the moneys that would have otherwise been allocated to that
grantee
shall instead be used to provide assistance in accordance with Section 50897.3.
(2) A grantee that receives block grant funds under this section shall contractually obligate at least 65 percent of
those funds by August 1, 2021.
(d) (1) (A) Subject Document
to
subparagraph (B), if a grantee 1 Filed
that receives block08/05/21 Pagethis
grant funds under 46section
of 52 fails to
contractually obligate the minimum amount of those funds by the deadline specified in paragraph (2) of
subdivision (c), the grantee shall repay to the department any unused amount of block grant funds allocated to it
not contractually obligated or expended.
(B) The department may waive the requirement to repay funds pursuant to subparagraph (A) if the grantee
demonstrates, to the satisfaction of the department, that it will contractually obligate and expend any unused
block grant funds allocated to it within the timeframes specified in federal law.
(2) The department may reallocate any funds repaid pursuant to paragraph (1) for purposes of this section. In
reallocating those funds, the department shall prioritize allocating additional funding
to grantees based on factors
that include unmet need, rate of application submissions, rate of attrition, and rate of expenditures.
(e) A grantee participating in the program pursuant to this section shall enter into a standard regulatory
agreement with the department that includes terms and conditions consistent with the requirements set forth in
this section.
(f) A grantee that receives an allocation of block grant funds pursuant to this section shall be solely responsible
for compliance with all applicable management, implementation, and reporting requirements established under
state and federal law.
(g) The requirements of this section shall apply only to the administration of Round 1 funds.
SEC. 24. Section 50897.2.1 is added to the Health and Safety Code, to read:
50897.2.1. (a) (1) A grantee that has a population of 500,000 or greater shall be eligible to receive a block grant
allocation from the department.
(2) A grantee with a population of 499,999 or less, but greater than 200,000, may request an allocation of block
grant funds pursuant to this section, in the form and manner prescribed by the department. The department
shall grant a request for an allocation of block grant funds pursuant to this paragraph if the grantee attests and,
in the department’s judgment, demonstrates that it has established a program consistent with the requirements
of this chapter and has the capability to implement the resources provided in accordance with applicable state
and federal law, including this
chapter and Section 3201 of Subtitle B of Title III of the federal American Rescue
Plan Act of 2021 (Public Law 117-2).
(3) A grantee that is not eligible for, or does not receive, an allocation of block grant funds pursuant to this
section shall receive its proportionate share of funds in accordance with the state reservation table, and those
funds shall be administered as provided in Section 50897.3.1.
(4) A grantee that receives a block grant pursuant to this section shall attest to the department, in the form and
manner prescribed by the department, that it will distribute assistance equitably and consistent with
demonstrated need within the jurisdiction.
(5) To receive funds pursuant to this section, an applicant shall agree to utilize its assistance made available
from the Secretary of the Treasury pursuant to
Section 3201 of Subtitle B of Title III of the federal American
Rescue Plan Act of 2021 (Public Law 117-2) in a manner consistent with this chapter. Refusal to comply with this
paragraph shall result in the applicant being prohibited from receiving state block grant funds and may result in
the department recouping block grant funds that are spent in a manner inconsistent with this chapter.
(6) A grantee that receives funds pursuant to this section shall not institute additional programmatic
requirements that may inhibit participation in the rental assistance program.
(7) A grantee that applies for assistance under this section may apply for an award allocation through an
authorized representative, without its legislative body expressly adopting an ordinance or resolution authorizing
that application, if it later authorizes a representative of the eligible grantee with legal
authority to bind the
eligible grantee to the terms and conditions of the award before executing the agreement with the department.
(b) Block grant funds allocated pursuant to this section shall be used for those eligible uses and compensation
requirements specified in, and subject to the applicable requirements of, Section 50897.1 and, upon approval by
the department, other eligible uses provided in Section 3201(d)(1)(D) of Subtitle B of Title III of the federal
American Rescue Plan Act of 2021 (Public Law 117-2).
(c) The deadlines for the allocation and use of block grant funds pursuant to this section shall be as follows:
(1) A grantee shall request that allocation from Document 1 Filed
the department 08/05/21
no later than 30 Page 47days
calendar of 52after the
operative date of this section. If a grantee fails to request the allocation by that date,
the moneys that would
have otherwise been allocated to that grantee shall instead be used to provide assistance in accordance with
Section 50897.3.1.
(2) An Option B grantee that receives block grant funds under this section shall contractually obligate at least 75
percent of its first tranche of state funds by October 31, 2021.
(3) An Option B grantee that receives block grant funds under this section shall contractually obligate 50 percent
of its total share of state funds by January 31, 2022.
(d) (1) (A) Subject to subparagraph (B), if a grantee that receives block grant funds under this section fails to
contractually obligate the minimum amount of those funds by the deadline specified in paragraph (2) of
subdivision (c), or to obligate the full amount of that allocation
by the deadline specified in paragraph (3) of
subdivision (c), the grantee shall repay to the department any unused amount of block grant funds allocated to it
not contractually obligated or expended.
(B) The department may waive the requirement to repay funds pursuant to subparagraph (A) if the grantee
demonstrates, to the satisfaction of the department, that it will contractually obligate and expend any unused
block grant funds allocated to it within the timeframes specified in federal law.
(2) The department may reallocate any funds repaid pursuant to paragraph (1) for purposes of this section. In
reallocating those funds, the department shall allocate funding to grantees based on factors that include unmet
need, rate of application submissions, rate of attrition, and rate of expenditures.
(e) A grantee
participating in the program pursuant to this section shall enter into a standard regulatory
agreement with the department that includes terms and conditions consistent with the requirements of this
section.
(f) An Option B grantee shall be solely responsible for compliance with all applicable management,
implementation, and reporting requirements established under state and federal law.
(g) The requirements of this section shall apply only to the administration of Round 2 funds.
50897.3. (a) (1) (A) The department may contract with a vendor to serve as the program implementer to manage
and fund services and distribute emergency rental assistance resources pursuant to this section. A vendor
selected to serve as program implementer shall demonstrate sufficient capacity and experience to administer a
program of this scope and scale.
(B) The program implementer shall have existing relationships with community-level partners to ensure all
regional geographies and target communities throughout the state have access to the program.
(C) (i) The program implementer shall have the technological capacity to develop and to
implement a central
technology-driven application portal and system that serves landlords and tenants, has mobile and
multilanguage capabilities, and allows an applicant track the status of their application. The application system
shall have the capacity to handle the volume of expected use without disruption.
(ii) The system shall begin accepting applications no later than March 15, 2021 and be available 24 hours a day,
seven days a week, with 99 percent planned uptime rating.
(iii) The system shall support, at minimum, a database of 1,000,000 application records.
(iv) The system shall support at minimum 20,000 concurrent full-access users, allowing users to create, read,
update and delete transactions based upon their user role.
(D) (i) The program implementer shall demonstrate experience with developing and managing direct payment or
grant programs, or direct payment and grant programs, including, but not limited to, program and application
development, outreach and marketing, translation and interpretation, fraud protections and approval processes,
secure disbursement, prioritizing the use of direct deposit, customer service, compliance, and reporting.
(ii) The program interface shall include, but not be limited to, the following:
Casesuch
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that either the landlord or theDocument 1 Filed
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an application 48 of
assistance and52
that both
parties are made aware of the opportunity to participate in the rental assistance program and accept the
program parameters.
(II) Appropriate notifications to ensure that both parties

understand that rental assistance is awarded in rounds
of funding based on eligibility and that the eligible household is reminded that payment is ultimately being
provided directly to the landlord, but the payment will directly address the eligible household’s rental arrears or
prospective rent, as applicable.
(III) Notification to both parties, including the landlord and the eligible household, respectively, of the initiation
and completion of the application process, whether the process is initiated by the landlord or the eligible
household. Upon payment, the program implementer shall provide an electronic record that payment has been
made and keep all records available for the duration of the program, or as otherwise provided under state or
federal law.
(E) The program implementer shall be able to manage a technology-driven duplication of benefits process in
compliance with
federal law.
(F) The program implementer shall comply with all state protections related to the use of personally identifiable
information, including providing any necessary disclosures and assuring the secure storage of any personally
identifiable information generated, as part of the application process.
(G) The program implementer shall coordinate its program activities with education and outreach contractors and
any affiliated service or technical assistance providers, including those that reach non-English speaking and
hard-to-reach households, with considerations for racial equity and traditionally underserved populations.
(2) The department may establish a contract with one or more education and outreach contractors to conduct a
multilingual statewide campaign to promote program participation and
accessibility.
(3) In accordance with paragraphs (1) and (2), the department shall seek contracted solutions that minimize
total administrative costs, such that savings may be reallocated for use as direct assistance.
(4) The department may receive rental assistance program funding from localities or federally recognized tribes
to administer on their behalf in a manner consistent with this chapter.
(b) (1) (A) A county with a population less than or equal to 200,000 and any grantee that is eligible for, but did
not receive, a direct allocation of assistance from the Secretary
of the Treasury pursuant to Section 501 of
Subtitle A of Title V of Division N of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260) shall
receive assistance pursuant to the state reservation table, to be administered in accordance with this section.
(B) A grantee that was eligible for, but did not receive, a direct allocation of assistance from the Secretary of the
Treasury pursuant to Section 501 of Subtitle A of Title V of Division N of the federal Consolidated Appropriations
Act, 2021 (Public Law 116-260) and was eligible for, but did not receive, block grant assistance under Section
50897.2 shall receive its proportionate share of assistance, as determined by the state reservation table, to be
administered in accordance
with this section.
(2) (A) A grantee that was eligible for, but did not receive, block grant funds pursuant to Section 50897.2, and
has elected to administer its direct share of assistance provided under Subtitle A of Title V of Division N of the
federal Consolidated Appropriations Act, 2021 (Public Law 116-260), shall have its proportionate share of block
grant funds administered pursuant to this section.
(B) (i) To minimize legal liability and potential noncompliance with federal law, specifically those violations
described in
Section 501(k)(3)(B) of Subtitle A of Title V of Division N of the federal Consolidated Appropriations
Act, 2021 (Public Law 116-260), the department, or, if applicable, the program implementer,
shall request that
grantees described in this paragraph enter into a data sharing agreement for the purpose of preventing unlawful
duplication of rental assistance to eligible households.
(ii) Notwithstanding any other law, a grantee that enters into a data sharing agreement required by this
subparagraph may disclose personally identifying information of rental assistance applicants to the department
or the program implementer for the purposes described in this subparagraph.
(iii) A grantee described by clause (ii) shall provide all applicable data, as determined by the department, before
the department or program implementer begins administering funds within the grantee’s jurisdiction.
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(C) Except 2:21-cv-01394-JAM-JDP
as otherwise provided in subparagraphDocument 1 that
(B), a
grantee Filed 08/05/21
is subject Pageprovided
to assistance 49 of 52under this
paragraph and received a direct allocation from the Secretary of the Treasury pursuant to Subtitle A of Title V of
Division N of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not be eligible for
administrative and technical assistance provided by the department, including, but not limited to, support for
long-term monitoring and reporting.
(D) The state, the department, or the program implementer acting on behalf of the department, shall be
indemnified from liability in the administration of assistance pursuant to this paragraph, specifically any violation
described in Section 501(k)(3)(B) of Subtitle A of Title V of Division N of the federal Consolidated Appropriations
Act, 2021 (Public Law 116-260).
(3) To the extent permitted by federal law, a

grantee that elects to participate in the program as provided in this
section, and that received rental assistance funding directly from the Secretary of the Treasury pursuant to
Subtitle A of Title V of Division N of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260),
shall add those funds received directly from the Secretary of the Treasury and any share of rental assistance
funding provided pursuant to Section 50897.2 to the funds allocated to it pursuant to this section. Except as
otherwise provided in paragraph (1) of subdivision (d), the total amount of funds described in this subparagraph
shall be used by the grantee in accordance with this section. Participation shall be conditioned upon having an
executed standard agreement with the Department.
(4) To the extent permitted by federal law, a federally recognized tribe that receives rental assistance funds
directly from the
Secretary of the Treasury pursuant to Subtitle A of Title V of Division N of the federal
Consolidated Appropriations Act, 2021 (Public Law 116-260) may add its direct federal allocation of funds to be
administered pursuant to this section. Participation shall be conditioned upon having an executed standard
agreement with the department.
(c) Funds allocated pursuant to this section shall be used for those eligible uses specified in, and subject to the
applicable requirements of, Section 50897.1.
(d) (1) Except as otherwise provided in paragraph (3), a grantee that receives funds pursuant to this section
shall contractually obligate
65 percent of those funds no later than August 1, 2021. The department may, in its
discretion, reallocate any funds allocated to a grantee that are not contractually obligated by that date to other
grantees
based on factors that include unmet need, rate of application submissions, rate of attrition, and rate of
expenditures.
(2) Funds administered on behalf of a federally recognized

tribe as provided in paragraph (4) of subdivision (b)
are not subject to the requirements of this subdivision.
(e) (1) In any legal action to recover rent or other financial obligations under the lease that accrued between
April 1, 2020, and September 30, 2021, before entry of any judgment in the plaintiff’s favor, the plaintiff shall
verify both of the following under penalty of perjury:
(A) The landlord has not received rental assistance or other financial compensation from any other source
corresponding to the amount claimed.
(B) The landlord does not have any pending application for rental
assistance or other financial compensation
from any other source corresponding to the amount claimed.
(2) In any unlawful detainer action seeking possession of residential rental property based on nonpayment of
rent or any other financial obligation under the lease, the court shall not enter a judgment in favor of the
landlord unless the landlord verifies all of the following under penalty of perjury:
(A) That the landlord has not received rental assistance or other financial compensation from any other source
corresponding to the amount demanded in the notice underlying the complaint.
(B) That the landlord has not received rental assistance or other financial compensation from any other source
for rent accruing after the date of the notice underlying the complaint.
(C) That the landlord does not have any pending application for rental assistance or other financial compensation
from any other source corresponding to the amount demanded in the notice underlying the complaint.
(D) That the landlord does not have any pending application for rental assistance or other financial compensation
from any other sources for rent accruing after the date of the notice underlying the complaint.
(f) Notwithstanding Document
any other state or local law, policy, or 1ordinance,
Filed 08/05/21
for purposesPage 50 of 52
of ensuring the timely
implementation of resources pursuant to this section a grantee that has a population greater than 200,000 may
enter into an agreement with the department to have its share of funds administered pursuant to this section by
the department and may redirect those funds to the department for that purpose.
(g) (1) Except as provided in paragraph (2), the requirements of this section shall apply only to the
administration of Round 1 funds.
(2) Subdivision (e) shall apply to the administration of Round 1 and Round 2 funds.
SEC. 26. Section 50897.3.1 is added to the Health and Safety Code, to read:
50897.3.1. (a) (1) The department may contract with a vendor to serve as the program implementer to manage
and fund services and distribute emergency rental assistance resources pursuant to this section and consistent
with the requirements of Section 50897.3.
(2) The department may establish a contract with one or more education and outreach contractors to conduct a
multilingual statewide campaign to promote program participation and accessibility.
(3) In accordance with paragraphs (1) and (2), the department shall seek contracted solutions that minimize
total administrative costs so that savings may be reallocated for use as direct assistance.
(4) The department may receive rental assistance program funding from localities or federally recognized tribes
to administer on their behalf in a manner consistent with this chapter.
(b) (1) (A) A county with a population less than or equal to 200,000 and any grantee that is eligible for, but did
not receive, a direct allocation of assistance from the Secretary of the Treasury pursuant to Section 3201 of
Subtitle B of Title III of the federal American Rescue Plan Act of 2021 (Public Law 117-2) shall receive assistance
pursuant to the state reservation table to be administered pursuant to this section.
(B) A grantee that was eligible for, but did not receive, a direct allocation of assistance from the Secretary of the
Treasury pursuant to Section 3201 of Subtitle B of Title
III of the federal American Rescue Plan Act of 2021
(Public Law 117-2) and was eligible for, but did not receive, block grant assistance under Section 50897.2.1 shall
receive its proportionate share of assistance pursuant to the state reservation table to be administered pursuant
to this section.
(2) (A) A grantee that was eligible for, but did not receive, block grant funds pursuant to Section 50897.2.1 and
has elected to administer its direct share of assistance provided under Section 3201 of Subtitle B of Title III of
the federal American Rescue Plan Act of 2021 (Public Law 117-2) shall have its proportionate share of block
grant funds administered pursuant to this section.
(B) (i) To minimize legal liability and potential noncompliance with federal law, specifically those violations
described in Section 501(k)(3)(B) of Subtitle A of
Title V of Division N of the federal Consolidated Appropriations
Act, 2021 (Public Law 116-260), the department, or, if applicable, the program implementer, shall request that
Option C grantees enter into a data sharing agreement for the purpose of preventing unlawful duplication of
rental assistance to eligible households.
(ii) Notwithstanding any other law, an Option C grantee that enters into a data sharing agreement as pursuant to
this subparagraph may disclose personally identifying information of rental assistance applicants to the
department or the program implementer for the purposes described in this subparagraph.
(iii) An Option C grantee described in clause (ii) shall provide all applicable data information, as determined by
the department, before when the department, or program implementer, begins administering funds within the
grantee jurisdiction.
(C) Except as otherwise provided in subparagraph (B), an Option C grantee shall not be eligible for
administrative and technical assistance provided by the department, including, but not limited to, support for
long-term monitoring and reporting.
(D) The state, the department, or the program implementer acting on behalf of the department shall be
indemnified from liability in the administration of assistance pursuant to this paragraph, specifically with respect
to a violation described in Section 501(k)(3)(B) of Subtitle A of Title V of Division N of the federal Consolidated
Appropriations Act, 2021 (Public Law 116-260).
Case
(E) (i) An 2:21-cv-01394-JAM-JDP
Option C grantee shall not be eligible Document 1 Filed
to have assistance 08/05/21
administered on itsPage
behalf 51 ofdepartment
if the 52
determines the structure of the grantee’s local rental assistance
program would put the state’s share of funds at
risk of being recouped by the United States Treasury pursuant to Section 3201(e) of Subtitle B of Title III of the
federal American Rescue Plan Act of 2021 (Public Law 117-2).
(ii) If, within 90 days of the effective date of this section, the department determines that an Option C grantee
cannot satisfy the requirements of this subparagraph, the grantee’s share of state funds shall be reallocated by
the department to grantees based on factors that include unmet need, rate of application submissions, rate of
attrition, and rate of expenditures.
(iii) Option C grantees that have funds reallocated pursuant to clause (i) may be eligible to receive funds, up to
their total share of the state reservation table, upon demonstrating to the department the grantee has unmet
need and funds would not be at risk of being recouped by the United
States Treasury pursuant to Section
3201(e) of Subtitle B of Title III of the federal American Rescue Plan Act of 2021 (Public Law 117-2).
(3) To the extent permitted by federal law, a grantee that elects to participate in the program as provided in this
section and that received rental assistance funding directly from the Secretary of the Treasury pursuant to
Section 3201 of Subtitle B of Title III of the American Rescue Plan Act of 2021 (Public Law 117-2) shall add those
funds received directly from the Secretary of the Treasury and any share of rental assistance funding provided
pursuant to Section 50897.2.1 to the funds allocated to it pursuant to this section. Except as provided in
paragraph (1) of subdivision (d), the total amount of funds described in this paragraph shall be used by the
grantee in accordance with this section. Participation shall be conditioned upon having an executed standard
(4) To the extent permitted by federal law, a federally recognized tribe that receives rental assistance funds
directly from the Secretary of the Treasury pursuant to Section 3201 of Subtitle B of Title III of the federal
American Rescue Plan Act of 2021 (Public Law 117-2) may add its direct federal allocation of funds to be
administered pursuant to this section. Participation shall be conditioned upon having an executed standard
(c) Funds allocated pursuant to this section shall be used for those eligible uses specified in and subject to the
applicable requirements of Section 50897.1 and other eligible uses provided in Section 3201(d)(1)(D) of Subtitle
B of Title III of the federal American Rescue Plan Act of 2021 (Public Law 117-2).
(d) A grantee that receives funds administered pursuant

to this section shall contractually obligate those funds
as follows:
(1) (A) A grantee participating in the state rental assistance program pursuant to Option A shall contractually
obligate at least 75 percent of its first tranche of state funds by October 31, 2021.
(B) A grantee participating in the state rental assistance program pursuant to Option A shall contractually
obligate at least 50 percent of its total share of state funds by January 31, 2022.
(2) (A) A grantee participating in the state rental assistance program pursuant to Option C shall contractually
obligate at least 75 percent of its first tranche of state funds by October 31, 2021.
(B) A grantee participating in the state rental assistance

program pursuant to Option C shall contractually
obligate at least 50 percent of its total share of state funds by January 31, 2022.
(3) In reallocating funds pursuant to this subdivision, the department or, if applicable, the program implementer
acting on behalf of the department, shall allocate unused funds to eligible grantees based on factors that include
unmet need, rate of application submissions, rate of attrition, and rate of expenditures.
(4) Funds administered on behalf of a federally recognized tribe, pursuant to paragraph (4) of subdivision (b),
are not subject to the requirements of this subdivision.
(e) Notwithstanding any other law, for purposes of ensuring the timely implementation of resources pursuant to
this section, a grantee that has a population greater than 200,000 may enter into an agreement
with the
department to have its share of funds administered pursuant to this section by the department and may redirect
those funds to the department for that purpose.
(f) The requirements of this section shall apply only to the administration of Round 2 funds.
Case
50897.4. 2:21-cv-01394-JAM-JDP
(a) Each Round 1 and Round 2 granteeDocument 1 toFiled
shall provide 08/05/21 information
the department Page 52 relating
of 52 to all
applicable performance metrics, as determined by the department.
(b) Funds provided to a grantee under this chapter shall be subject to the same reporting and verification
requirements specified in Section 501(g) of Subtitle A of Title V of Division N of the federal Consolidated
Appropriations Act, 2021 (Public Law 116-260). The grantee shall, in addition, provide any other information that
the department deems necessary for
purposes of this chapter, including, but not limited to, weekly funding
obligation, expenditure, and projection reports.
(c) To the extent feasible, each grantee shall ensure that any assistance provided to an eligible household under
this chapter is not duplicative of any other state–funded rental assistance provided to that eligible household.
(d) (1) The department shall submit to the Joint Legislative Budget Committee, on a monthly basis for the
duration of the program, a report that provides programmatic performance metrics for funds administered
pursuant to this chapter. The report shall include, at minimum, the following information:
(A) Obligation of funds for assistance provided under this chapter.
(B) Expenditure of funds
for assistance provided under this chapter.
(C) Expenditure by eligible uses for assistance provided pursuant to this chapter.
(D) Reallocation of funds, if any, for assistance provided pursuant to this chapter.
(E) Geographic distribution of funds provided pursuant to Section 50897.3.
(F) For the first monthly report submitted pursuant to this section only, an overview of which jurisdictions have
elected to participate in the state rental assistance programs as provided in Sections 50897.2 and 50897.3,
respectively.
(2) A report required to be submitted pursuant to this subdivision shall be submitted in compliance with Section
9795 of the Government
Code.
SEC. 28. The provisions of this act are severable. If any provision of this act or its application is held invalid, that
invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or
application.
SEC. 29. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a
crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the California Constitution.
SEC. 30. The Legislature finds and declares that Sections 11 and 13 of this act, which amend Sections 1161.2
and 1161.2.5 of the Code of Civil Procedure, imposes a limitation on the public’s right of access to the meetings
of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the
California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to
demonstrate the interest protected by this limitation and the need for protecting that interest:
This act
balances the public’s right to access records of judicial proceedings with the need to protect the privacy
and future housing needs of tenants facing financial distress due to COVID-19.
SEC. 31. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or
safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts
constituting the necessity are:
In order to address the hardships imposed by the COVID-19 pandemic on tenants and landlords in California as
soon as possible, it is necessary that this act take immediate effect.

Complaint For Declaratory and Injunctive Relief, Cal. Rental Housing Ass'n v. Newsom, No. 2:21-cv-01394-JAM-JDP (E.D. Cal. Aug. 5, 2021)

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Complaint For Declaratory and Injunctive Relief, Cal. Rental Housing Ass'n v. Newsom, No. 2:21-cv-01394-JAM-JDP (E.D. Cal. Aug. 5, 2021)

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Case 2:21-cv-01394-JAM-JDP Document 1 Filed 08/05/21 Page 1 of 52

1 PAUL J. BEARD II (State Bar No. 210563)

6 moratorium on evictions dating back to March 2020.

12 Contracts Clause of Constitution.

13 3. Plaintiffs are an association of rental housing owners, as well as individual

15 emotionally by a seemingly never-ending eviction moratorium, with AB 832 as the

16 most recent iteration of the same.

19 owners to repossess their properties for nonpayment of rent.

20 JURISDICTION AND VENUE

28 pursuant to, inter alia, 42 U.S.C. § 1988.

1 6. Venue is proper in this district pursuant to 28 U.S.C. §§ 1391(b)(1) and

18 16 months. While he has submitted to Ms. Montano a declaration of COVID-19-related

10 10. Defendant GAVIN NEWSOM is sued in his official capacity as Governor

12 the responsibility to “see that the law”—including AB 832—“is faithfully executed.”

13 Cal. Const. art. V, § 1.

14 11. Defendant ROB BONTA is sued in his official capacity as Attorney

16 enforcing the laws, including AB 832.

24 such fictitiously named Defendants when the same are ascertained.

5 came due between March 1, 2020, and January 31, 2021.

8 a. A tenant who submits a so-called declaration of COVID-19-related

1 a decrease in income or an increase in expenses due to COVID (however

10 2021, in whole or in part, is automatically protected against eviction. No owner who

23 property” and does not pass to or through the government’s hands).

24 27. AB 832 imposes a moratorium on evictions for nonpayment of rent,

18 (3) the character of Defendants’ action—enforcement of a law that confers no

19 reciprocity of advantage, but rather penalizes owners to the exclusive benefit of

20 tenants—weighs decisively in favor of finding a taking.

25 the Public Use requirement of the Takings Clause.

26 31. Second, AB 832 provides no immediate or adequate mechanism for

1 whether the law “operate[s] as a substantial impairment of a contractual relationship.”

11 contract rights of individual plaintiffs and CalRHA’s members is not a reasonable or

12 necessary means of achieving that purpose. Accordingly, the contractual impairments

13 effectuated by AB 832 violate the Contracts Clause and are unconstitutional.

14 40. In enforcing AB 832 to Plaintiffs and other rental housing owners,

AB-832 COVID-19 relief: tenancy: federal rental assistance. (2021-2022)

SHARE THIS: Date Published: 06/29/2021 02:00 PM

LEGISLATIVE COUNSEL'S DIGEST

This bill would extend this provision until October 1, 2021.

This bill would extend those provisions until October 1, 2025.

comply Case 2:21-cv-01394-JAM-JDP

(9) Existing law establishes a program for providing rental assistance,

(11) Existing constitutional provisions require that a statute that

This bill would make legislative findings to that effect.

THE PEOPLE OF THE STATE OF CALIFORNIA

SECTION 1. Section 789.4 of the Civil Code is amended to read:

SEC. 2. Section 1788.65 of the Civil Code is amended to read:

SEC. 3. Section 1788.66 of the Civil Code is amended to read:

SEC. 4. Section 1942.5 of the Civil Code, as amended by Section 5 of

(1) The actual damages sustained by the lessee.

(l) This section shall remain in effect until

SEC. 5. Section 1942.5 of the Civil Code, as amended by Section 6 of

(h) Any lessor or agent of a lessor

(1) The actual damages sustained by the lessee.

(l) This section shall become operative on October 1, 2021.

SEC. 6. Section 3273.1 of the Civil Code is amended to read:

3273.1. For purposes of this title:

(C) A limited liability company in which at least one member is a corporation.

SEC. 7. Section 116.223 of the Code of Civil Procedure is amended to read:

116.223. (a) The Legislature hereby finds and declares as follows:

(b) (1) Notwithstanding paragraph (1) of

SEC. 8. Section 871.10 of the Code of Civil Procedure is amended to read:

(d) Subdivisions (a) through

(g) (1) Actions for breach of