CA’s AB 1436 Goes to Senate Vote Next Week
AB 1436 has passed through the California Judiciary Committee with no opposition. This state bill, that would ban evictions for missing rent or mortgage payments and mandate across California, is one step closer to final passage after it passed through the state’s Senate Judiciary Committee, Tuesday.
Assembly Bill 1436, authored by Assemblymember David Chiu, D-San Francisco, passed the committee with 6-0, with three votes abstaining. The bill is expected to be heard by the full senate next week.
If enacted, AB 1436 would halt evictions for nonpayment of rent due to pandemic-related hardships until 90 days after the current state of emergency is lifted, or through April 2021, whichever is earlier. It would also provide mortgage forbearance, essentially delaying payments, for landlords and homeowners until as late as April 2021.
Robert Wilson, representing the California Credit Union, told the committee his organization opposes AB 1436 because “by not allowing us to work directly with our members on a case by case basis, lenders will lose capital rapidly.”
Gov. Gavin Newsom said today that as the legislative session nears its end, those negotiations are ongoing. “We’ve been able to establish the areas of agreement. Now we’re starting to focus on those areas of disagreement.”
“If we don’t change state law in the next two weeks, we will see a massive wave of evictions. This will be catastrophic for tenants, landlords, homeowners and COVID-19 spread.” Assemblymember David Chiu, D-San Francisco
Over 300 people called in to state their support for the bill, from tenants groups, unions and individual landlords, to elected officials. Roughly 160 people, mostly who identified as landlords, called in to oppose the bill. Due to time restrictions, callers were not allowed to provide any comment, merely state their names and whether they oppose or support the bill.
Chiu told the Senate committee, “If we don’t change state law in the next two weeks, we will see a massive wave of evictions. This will be catastrophic for tenants, landlords, homeowners and COVID-19 spread.”
The bill faces a floor vote by the state Senate, and final approval by the Assembly, to finally land on Gov. Gavin Newsom’s desk. The bill is scheduled to be heard by the appropriations committee this week, but isn’t expected to face resistance because it has no cost to government.
Last week, the Judicial Council of California voted to end its moratorium on evictions and foreclosure filings on Sept. 1.
The California Bankers’ Association is worried that AB 1436’s provision to provide mortgage forbearance, essentially pushing back landlord and homeowner mortgage payments, has “constitutional issues” and would monetarily penalize their industry.
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