Los Angeles County is considering throwing a life raft to coronavirus-affected renters.
County Supervisors Janice Hahn and Hilda Solis proposed the rental assistance program that could cover up to $1,000 a month for three months, according to the L.A. Daily News.
L.A. County has already barred evictions for the near future, but renters will be on the hook for missed payments at some point in the future. It appears the goal of the assistance program is to help renters pay their landlords when the final bills come due.
“The eviction moratorium we have in place has provided some relief, but many families are going to struggle to pay back the rent they owe after this crisis is over,” Hahn said.
The program would not only help tenants, but landlords working on tight margins. Landlord trade organizations fear there will be a wave of multifamily mortgage defaults in the near future.
The scope of the program will depend on how much funding the County can put together. Money could come from the federal government’s coronavirus stimulus package, the CARES ACT, but Hahn and Solis are hoping that private parties or philanthropic organizations will contribute as well.
The City of L.A. is also exploring rental assistance. The City Council may resurrect an assistance program created last year to offset rent hikes in the lead up to a state rent regulation law.
A state judicial body ruled earlier this week ordering California courts to abstain from carrying out any eviction notices or any foreclosures until Governor Gavin Newsom lifts the state-wide state of emergency. [LADN] — Dennis Lynch