Preparing for the Expiration of the COVID-19 Tenant Relief Act (CTRA)
By Kimball, Tirey & St. John LLP
AB 832 is set to expire on September 30, 2021, and no further extension has been passed at this time. Therefore, as the expiration date approaches, landlords need to take steps now in order to ensure they are in a position to move forward in cases where tenants have failed to pay the rent.
Demand All Rent Due Prior to September 30, 2021
CTRA allows tenants who turn in declarations of COVID-19 hardship to pay 25% of the rent demanded in one or more notices during the transition period (September of 2020 to September of 2021) by September 30, 2021. For tenants who comply, the remaining 75% of the rent owed for the transition period converts to consumer debt and a monetary judgment may be sought in small claims court as of November 1, 2021.
In order to preserve their right to evict tenants who do not pay the 25% by September 30, 2021, landlords should serve a 15 or 30-Day Pay or Quit Notice asking for all amounts due prior to September 30, 2021 (unless prevented from doing so by a local ordinance).
