California call for class action lawsuit on Eviction Moratorium

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California call for class action lawsuit on Eviction Moratorium

David To
Newport Coast, CA · Member since 2014 · 95 posts · 73 votes

So I owe two homes that I'm renting out, one tenant is paying just fine but the other tenant owes me two months of non-payment and are not paying since she's been unemployed. If she applies for unemployment, she'd be getting about $4,000 a month in California, which is more than enough for the rent payment. But she isn't cooperating and I believe is abusing the system.

I wonder, what is better to do? With California's judicial council law, you have to wait another 90 days after the governor lifts the eviction moratorium (that means July 28, 2020 plus 90 days afterwards so we are looking at October 28, 2020). That's a potential of 5 - 6 months where the tenant doesn't have to pay me a single dime and will be squatting in my house for free. Not to mention any damages to the property I will have to suffer as well. And it could get extended to 2021.

What's the chance of me getting the rent back-pay owned to me? The tenant can simply delay and move out or get evicted in November and it could end up in small claims court if I want to get any money back or a collection agency will have to go after the tenant (and the collection agency gets 40% of anything they can collect on). 

Should I gamble on this or look into how to file a class action lawsuit against the State of California and the Judicial Council?

Any other people in California having these issues and would like to get together to file a Class Action Lawsuit or offer suggestions on joining local Landlord associations who are already looking to do so? Strength in numbers is the way to do anything about this. 

Do other landlords have problem tenants that are not paying as well?

Let me know your thoughts.

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Ama Ols
Investor · wilmington, NC · Member since 2012 · 3 posts · 28 votes
6y

Absolutely you need to sue them. I own several hundred rental units in other states, otherwise I'd join you in helping cover the costs. California needs businesses to start putting a lot of pressure on it. The good news is that most of the businesses are moving to Texas which is the biggest hurt that they can put on the state. Without businesses it loses its revenue and becomes a trash heap. Sue them. They are violating your constitutional rights and probably violating the takings clause. They are usurping your property for the benefit of the public. They must reimburse you for taking your private property and using it. Start reaching out to landlords, you can get all their contact info using reonomy which only cost about $100 per month to get direct owner contact points. Get a handful together to start, so you have some cash to initiate the class action. If we can get more landlords across the country to take action we have the possibility of 30 million housing units suing the federal and state governments! Federal Cares act alone is causing over 5 billion in damages for it's moratoriums imposed on landlords.

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  • Chris H.
    Member since 2020 · 5 posts · 5 votes
    5y
    0Reply
  • Nadia O.
    Member since 2020 · 82 posts · 100 votes
    5y

    Wow! Reading all the threads here make me think twice about buying another rental property. My renters are exiting their lease in summer. Perhaps it is time to sell & venture elsewhere. Thank you all for sharing your stories. And I’m sorry to hear your hardships 

    1Reply
  • Marie Pruden
    Member since 2020 · 19 posts · 0 votes
    5y

    Hi, All -

    Does anybody know where to apply for the renters relief assistance SB91?  

    0Reply
  • David To
    OP
    Newport Coast, CA · Member since 2014 · 95 posts · 73 votes
    5y

    A new law just passed in July 1 in California and it's called AB-832. It added new stipulation, including the ability for housing providers to get 100% back rent owed even for tenants that have moved out already. So that's great news. I'm filling it out and trying to get my tenant to complete her application and trying to push her to comply. Some tenants are just damn stubborn and stupid in my opinion. The tenant even stated she needs to find out if it's legal. Well, she stayed on my property for over 6 months with an unlawful detainer and that's totally illegal and she got away with it. Now the law states housing providers can seek 100% back rent owed, courtesy of the US Federal Government and the tenant is hesitating because she has to verify if it's legal for her when she is receiving housing assistance currently. What stupidity. You'd rather I go after you in small claims court and you file bankruptcy or have a judgement against you? When you can simply cooperate with me on seeing for housing assistance and have the US Federal Government pay for all of your rent debts? Ridiculous and stupid people.

    0Reply
  • Anne C.
    Member since 2018 · 13 posts · 8 votes
    5y

    Do you know if landlords who evicted their tenants can apply? Not that I expect my tenant to help and fill out the application, even though he got to live 8 months rent-free at my property...

    0Reply
  • Heather Collins
    Member since 2018 · 51 posts · 10 votes
    5y

    My tenant just disappeared into the night owing me all the back rent, I hope this new law will be able to help me in some way

    Thanks for making me aware of this new law.

    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y
    Originally posted by @David To:

    A new law just passed in July 1 in California and it's called AB-832. It added new stipulation, including the ability for housing providers to get 100% back rent owed even for tenants that have moved out already. So that's great news. I'm filling it out and trying to get my tenant to complete her application and trying to push her to comply. Some tenants are just damn stubborn and stupid in my opinion. The tenant even stated she needs to find out if it's legal. Well, she stayed on my property for over 6 months with an unlawful detainer and that's totally illegal and she got away with it. Now the law states housing providers can seek 100% back rent owed, courtesy of the US Federal Government and the tenant is hesitating because she has to verify if it's legal for her when she is receiving housing assistance currently. What stupidity. You'd rather I go after you in small claims court and you file bankruptcy or have a judgement against you? When you can simply cooperate with me on seeing for housing assistance and have the US Federal Government pay for all of your rent debts? Ridiculous and stupid people.

     They are not stupid, just selfish. Applying for assistance means YOU get paid and helps YOU. They don't need to pay you to live in the property, so there is no benefit to filling out the paperwork. Tenants don't believe that landlords will go after them in court and realistically most will not. The tenant will just disappear and rent from another landlord. No rent payment, no judgement and no bankruptcy. 

    The eviction moratorium is a failed experiment. Instead of stopping evictions, the government needs to get money to landlords. Tell tenants "if you don't apply, qualify and get assistance, you can be evicted". Give the eviction court authority to pause evictions only in cases where tenants have proof they applied for assistance. 

    When people are hungry, we don't pass a law that grocery stores have to give away free food. We give them EBT cards that are only good for food to buy groceries. 

    The stupidity is your state and federal elected officials. Place accountability in the right place or this will just happen again. 

    3Reply
  • Greg M.
    Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    5y
    Originally posted by @David To:

    A new law just passed in July 1 in California and it's called AB-832. It added new stipulation, including the ability for housing providers to get 100% back rent owed even for tenants that have moved out already. 

    I'm not going to hold my breath on this. I agreed to accept 80% under the City of LA program because I thought it would be a somewhat fast payment and it'd be nice to get the tenant caught up. Fast forward 110+ days since submitting the paperwork and it's still in the "received" status. They said I should hear something by the end of August. I'm frustrated and the tenant is worried and if I had it to do over again, I'd probably have just non-renewed the tenant. 

    1Reply
  • David To
    OP
    Newport Coast, CA · Member since 2014 · 95 posts · 73 votes
    5y

    Well, my ex-tenant finally responded back to my email and stated she is filling out the assistance application so that's good news. It doesn't matter how long it takes for me to get back rent from the US feds. I can wait a year or more, so long as it gets approved and I'll eventually see that money in the future. Better than not getting anything at all and having to go through small claims court.

    1Reply
  • David To
    OP
    Newport Coast, CA · Member since 2014 · 95 posts · 73 votes
    5y

    Well, what a load of crap. So despite these laws coming into effect to help landlords and I followed instructions, I'm still screwed. All those 57 BILLION in landlord aid, I'm not gonna get any. I didn't do anything wrong to try and get $27,000 owed to me by the stupid eviction moratorium and now will have to choice but to pursue small claims court.

    1) I applied to San Diego Covid Rental Assistance on behalf on my tenant (appeal by tenant got rejected; not sure what the tenant did or did not do since I can't control her actions and this program only she can appeal and try to get aid, I can only start the process and try and get her to cooperate)

    2) I also applied to San Diego Small Landlord Rental Assistance on my own (got rejected because I no longer reside in San Diego)

    Both got rejected. I spent several months on reading up the stuff and filling out all the forms and constantly pestering my tenant to follow through with her application.  

    Here's what they returned:

    The San Diego Housing Commission (SDHC) has completed its review of the items you raised in your appeal of the initial determination that your application was ineligible for the City of San Diego COVID-19 Housing Stability Assistance Program. 

    Upon further review, SDHC has determined that your application remains ineligible for the following reason(s):

    • Failure to return required forms and documents to determine eligibility  
    • Inaccurate information/Documentation insufficient to determine eligibility 

          This is the Final Determination that your application for the City of San Diego COVID-19 Housing Stability Assistance Program is not eligible for assistance. There will be no further review of this application.

          1Reply
        • Victor S.
          WorldWide · Member since 2016 · 1k+ posts · 1k+ votes
          5y
          Originally posted by @David To:

          Well, what a load of crap. So despite these laws coming into effect to help landlords and I followed instructions, I'm still screwed. All those 57 BILLION in landlord aid, I'm not gonna get any. I didn't do anything wrong to try and get $27,000 owed to me by the stupid eviction moratorium and now will have to choice but to pursue small claims court.


          waste of time. you'll get the judgement, but good luck collecting, unless you're ready to spend even more money.

          0Reply
        • Paul Sofia
          Lender · Charlotte, NC · Member since 2016 · 376 posts · 172 votes
          5y

          They are crushing the little guys.  This was all done by design.  This was never about a 'virus', I promise you.  We ain't seen nothing yet.

          1Reply
        • Susan O.
          Fresno, CA · Member since 2015 · 552 posts · 181 votes
          4y

          At this point it's just too unfair and unjust.  I have a tenant who hasn't paid since october 2020 and they now have a brand new bmw and just purchased a brand new 2022 chevy silverado

          0Reply
        • Susan O.
          Fresno, CA · Member since 2015 · 552 posts · 181 votes
          4y
          Originally posted by @David To:

          Well, what a load of crap. So despite these laws coming into effect to help landlords and I followed instructions, I'm still screwed. All those 57 BILLION in landlord aid, I'm not gonna get any. I didn't do anything wrong to try and get $27,000 owed to me by the stupid eviction moratorium and now will have to choice but to pursue small claims court.

          1) I applied to San Diego Covid Rental Assistance on behalf on my tenant (appeal by tenant got rejected; not sure what the tenant did or did not do since I can't control her actions and this program only she can appeal and try to get aid, I can only start the process and try and get her to cooperate)

          2) I also applied to San Diego Small Landlord Rental Assistance on my own (got rejected because I no longer reside in San Diego)

          Both got rejected. I spent several months on reading up the stuff and filling out all the forms and constantly pestering my tenant to follow through with her application.  

          Here's what they returned:

          The San Diego Housing Commission (SDHC) has completed its review of the items you raised in your appeal of the initial determination that your application was ineligible for the City of San Diego COVID-19 Housing Stability Assistance Program. 

          Upon further review, SDHC has determined that your application remains ineligible for the following reason(s):

          • Failure to return required forms and documents to determine eligibility  
          • Inaccurate information/Documentation insufficient to determine eligibility 

                This is the Final Determination that your application for the City of San Diego COVID-19 Housing Stability Assistance Program is not eligible for assistance. There will be no further review of this application.

                 These politicians are con-men.  Same happened to me when i applied they rejected it after I spent 40 hours chasing my tenant down.  This is the tenant who has plenty of money but is merely not paying me

                0Reply
              • Paul Sofia
                Lender · Charlotte, NC · Member since 2016 · 376 posts · 172 votes
                1y

                Curious to see if any landlords were able to retrieve their back rents through the "system"

                0Reply
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