Storm Clouds on the Horizon

HOA’s and landlords face the end of rental eviction moratorium. An ominous cloud covering the housing market is starting to send shivers down landlords spines. Residents are not paying rent, and when they're finally asked to, some say they'll just flee - leaving the landlord to cover the costs.

Are you an HOA board member trying to balance your operating budget in these times of escalating prices? Well, there could be even more ominous clouds on your horizon.  On June 30th, the Federal and California rental eviction moratoriums end. According to the Census Bureau’s recent Household Pulse Survey, 8.3 million renters are behind on their rent.  Nationally, the CDC has a moratorium on evictions if you meet certain guidelines. However, landlords can still charge fees and penalties for not paying rent, so tenants should be aware that back rent along with potentially other late charges are due once the moratorium is lifted.  To see who qualifies for the CDC eviction moratorium click here.

When the moratorium is finally lifted, folks who owe back rent will be faced with some hard choices. Today I spoke with ProTec manager Brad Wright who told me about one California condo resident who said he had not paid rent in a year. When the landlord presses him, he is just going to flee. How many other HOA tenants are going to take the same irresponsible action?  HOA dues payments will most likely be affected, so it might be a good idea for boards to publish in their newsletters ways to help these strapped renters:  these assistance programs can help.  Here in California, Governor Newsom signed SB 91 which has very strong renter protections and also provides relief to small property owners in need of assistance to pay mortgages, thanks to $2.6 billion in federal stimulus funding. It’s hard to say how bad this storm will be but it’s best to plan for the worst and hope for the best.

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