Vote Smart's Synopsis:

Vote to pass a bill that authorizes an owner of real property and a tenant to sign and execute a tenant-owner COVID-19 eviction relief agreement that would allow the tenant to defer their unpaid rent, and prohibits the owner from evicting the tenant.

Highlights:

• Authorizes an owner of real property and a tenant to sign and execute a tenant-owner COVID-19 eviction relief agreement during the COVID-19 pandemic state of emergency, and a certain number of days thereafter (Sec. 1).

• Requires the terms of the tenant-owner COVID-19 eviction relief agreement to include the following (Sec. 1):

• The owner will agree to allow the tenant to defer any unpaid rents accrued during the state of emergency and however many days thereafter, and will specify the amount of unpaid rent that will be deferred;

• The owner will agree not to serve a notice terminating the tenancy, file a complaint for unlawful detainer, take action to proceed with a pending unlawful detainer suit, or request that a sheriff execute a writ of possession for the property; and

• The tenant will agree to pay any deferred unpaid rent accrued during the state of emergency, and however many days thereafter, to the state.

• Specifies that the owner, after having made an offer to the tenant to execute the tenant-owner COVID-19 eviction relief agreement and the tenant rejects the offer, must obtain a signed acknowledgement of receipt from the tenant (Sec. 1).

• Specifies that following 30 days after the owner hand delivers the offer, or 40 days after the owner mails the offer, the offer will be deemed rejected if the tenant does not respond (Sec. 1).

• Establishes eligibility for certain credits against tax liability for an owner of real property who executes a signed tenant-owner COVID-19 eviction relief agreement with a tenant (Sec. 1).

• Prohibits an owner of real property, during the state of emergency and however many days thereafter, from demanding payment of unpaid rent, serving a notice terminating tenancy, filing a complaint for unlawful detainer, taking action to proceed with a pending unlawful detainer action, requesting that a sheriff execute a writ of possession for the property, or otherwise attempt to evict a tenant in any manner unless either of the following applies (Sec. 2):

• The notice and any complaint based on that notice allege that the action is necessary to protect public health and safety; or

• The notice or complaint includes either a signed acknowledgement of receipt or a sworn confirmation of a rejected offer for a tenant-owner COVID-19 eviction relief agreement.

• Requires the Franchise Tax Board to create a form tenant-owner COVID-19 eviction relief agreement and accompanying notice in English, Spanish, Chinese, Tagalog, Vietnamese, and Korean, and to make the form agreement and notice available on its website within 30 days of the operative date of this section (Sec. 5).

• Requires a tenant in a tenant-owner COVID-19 eviction relief agreement, for taxable years beginning on and after January 1, 2024, and before January 1, 2034, to pay the deferred rent in accordance with the following (Sec. 5):

• The Franchise Tax Board does not impose interest on the balance of unpaid rent specified in an agreement unless and until the balance is sent to collections;

• The unpaid rent is divided into equal installments over a 10-year period beginning in each taxable year on and after January 1, 2024, and before January 1, 2034, and is repaid in those installments, unless a taxpayer seeks an exemption or reduction in the installment amount of that year; and

• Each equal installment calculated in the preceding sub-highlight is included in the taxpayer’s tax return for each year specified above.

Full Bill Text