The first problem with the order was verifiability, said property owners who talked to The Epoch Times. Tenants seeking eviction protection did not need to provide financial statements or other proof—only an unsworn declaration—a laxity that invited poseurs who might not have been financially affected.
A bigger problem was the economic imbalance; landlords continue to pay their mortgage, taxes, insurance, water and utilities, trash removal and cleaning, and repairs while tenants may not be paying rent. In fact, “locked down” tenants create greater wear and tear on plumbing and appliances and use more utilities.
In addition to their rental building expenses, “What happens to property owners’ own expenses when they have lost their jobs to COVID-19?” Harold Greenberg, a Los Angeles attorney asked. “Those property owners owe their individual property taxes, utility bills, mortgage payments, and general expenses and they are being pulled from both ends by the eviction moratorium order.” Greenberg served as past president of the Apartment Association of Greater Los Angeles, the association’s chairperson of the Local Government Relations Committee, and deputy district attorney III for Los Angeles country several decades ago.
Rental Assistance
The Consolidated Appropriations Act passed by Congress in December 2020 provided $25 billion in rental assistance programs, important provisions since the eviction moratorium does not erase tenants’ back rent liabilities.The programs, to be administered by states, may still penalize landlords. In California, for example, a measure was passed that would pay landlords 80 percent of their one year of lost COVID-19 rent if they agree to forgive 20 percent. Tenants and landlords must apply together for the funds.
An owner of 300 housing units in the LA area who requested anonymity out of fear of local regulatory reprisals spoke to The Epoch Times about the provision. “I registered every tenant who owes us rent and out of 35 tenants, only five have applied so far,” he said. “I even hired a concierge to sit down with the tenants but so far, not much interest.”
In California, if back rent is not recovered through rental assistance programs emanating from the Consolidated Appropriations Act, landlords may seek recovery of back rent, reclassified as civil debt, in small claims court—a daunting and usually unsuccessful prospect.
“Why doesn’t the state and city give rental vouchers directly to tenants?” asked the LA property owner. “Because by keeping 20 percent of the rent owed to landlords, they collect a de facto tax. The program also punishes those who broke their backs to pay their rent during this last difficult year—they get nothing for their efforts.”
In May, California Gov. Gavin Newsom announced plans to try to pay rental housing providers 100 percent of COVID-19-related back rent as opposed to 80 percent.
According to Greenberg, tenant-favoring legislation does not just stem from Democrat-controlled legislatures. “There are also three times as many tenants as there are landlords so we are talking politics and votes.” If a dispute reaches court, there is another factor that works against landlords he says. “Tenants usually request a jury trial and how many landlords will be on the jury? Probably none.”
Meanwhile, some ask why eviction moratoriums that dock landlords should still be in effect when social venues like sports pavilions are now open and many are now vaccinated. “I would love to claim 300 dependents on my taxes,” laments the LA property owner.
