Los Angeles, CA

Taxpayers about to bail out Los Angeles renters who passed up on bills during pandemic

Amy Christie

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The people who pay their rent and all other bills on time are about to have another cost added to their monthly expenses, in Los Angeles and all over California. They will be bailing out all other renters who could not pay or just didn’t do it while the COVID-19 pandemic was taking over, as The Blaze reports.

What are the details?

The strict lockdown measure for COVID-19 were implemented in the spring of 2020. People lost their jobs, many could not work, so paying bills had become a challenge.

To reduce the pressure from financial burdens eviction moratoriums were put in place which meant that tenants could stay in their rental homes or apartments even though they were not able to pay their rent on time. However, a bigger issue was triggered. What were landlords going to do to make ends meet?

California will be using billions of dollars to finance due rent payments in Los Angeles and everywhere else in the state, thereby providing the relief needed for tenants and landlords.

As reported by the Associated Press, “California has $5.2 billion to pay off people's rent, money from multiple aid packages approved by Congress. That appears to be more than enough to cover all of the unpaid rent in the state, according to Jason Elliott, senior counselor to Newsom on housing and homelessness.
But the state has been slow to distribute that money, and it's unlikely it can spend it all by June 30. A report from the California Department Housing and Community Development showed that of the $490 million in requests for rental assistance through May 31, just $32 million has been paid. That doesn't include the 12 cities and 10 counties that run their own rental assistance programs.”

Gov. Gavin Newsom also plans to finance past-due utility bills, which would go up to at least $2 billion.

“Our most important priority is making sure the significant amount of federal rental assistance we have gets into the pockets of people who are entitled to it, and who need it. We need to increase the amount of money we're making available to individual renters and landlords,” Elliott said for KQED.

While the eviction moratorium is set to end on June 30, it seems very likely that California will extend it, as the Associated Press notes.

“An extension of the eviction ban seems likely to give California more time to spend all the money to cover unpaid rent,” the Associated Press added.

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Amy Christie is a passionate writer and journalist, always striving to bring out the positive and create meaningful connections.

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