Californians are set to get their backed rent accrued during the 2020 lockdowns paid through a new program announced by Gov. Gavin Newsom.
The move would fulfill the embattled governors’ promise to landlords and tenants that one will break even and the other will get relief as he is set to be recalled in the Fall.
BACKED RENT AND EVICTION MORATORIUM:
A little over 190,000 Californians have applied to get relief as a high percentage of the population is behind an average of 3 months in rent, due once the eviction moratorium expires on June 30th.
The state has secured over $5.2 Billion to pay off people’s rent, a figure that senior counselor to Newsom, Jason Elliot, says might do the trick.
Gavin Newsom and his Administration is meeting now as California’s eviction moratorium is set to expire on June 30th. However, it is still unknown if it will be extended, and if prolonged, there is debate within California politicians as to for how long.
If the moratorium is extended, it will give the state more time to pay off the funds needed to pay people’s rent, something that is almost impossible under the current time frame.
As the nanny states make big promises, it has been slow to distribute the funds as only 2% have gotten the money. The state received $490 million in rental request relief through May 30th but has only paid out $32 Million but not including cities and counties that have their own rental assistance programs running.
Gavin Newsom recently announced that California has a budget surplus of $76 billion and will also receive a $25 billion federal stimulus that is en route. Will Californian politicians use this money to pay off people’s rent or raise taxes once again to pay for it? Only time will tell.