April rent, mortgage payments are due in days. If you can’t pay, here’s what to do
For many renters in the central San Joaquin Valley, the impacts of the coronavirus crisis could add a new crushing burden: homelessness.
Gov. Gavin Newsom on Friday enacted an order that prohibits the enforcement of eviction orders due to nonpayment related to COVID-19 impacts. Several other orders and legislation – at the local, state and federal level – have added additional protections for renters, homeowners, and owners of multifamily properties who are having issues paying their rent or mortgage.
Nearly two-thirds of low-income renters in Fresno County pay more than 30% of their income on rent, according to a National Low Income Housing Coalition analysis. For a person working in the retail industry, a loss of 20 hours a week – at a median wage of $12.08 per hour – means $966 less each month. For many, that’s their rent payment, gone after so many businesses shuttered in the name of public health. The median rent in Fresno County in 2019 was $1,150 per month, according to the same analysis.
Homeowners, some who have more recently rebounded from the last recession, could be in trouble of losing their homes, as well.
It’s important to know that, contrary to many reports, there is no rent or mortgage freeze. Rent and mortgage payments for April are still due for most Americans; central San Joaquin Valley residents are no exception. The new laws and orders help shield some people from losing their home in the short-term if they cannot pay; they don’t provide forgiveness of payments expected.
What do all of these new laws and protections mean? This guide can help renters and homeowners sort through options and figure out what type of relief is available.
Options for renters
The bottom line for all renters in California is this: If you are experiencing any financial constraints due to COVID-19, you should let your landlord know immediately. Putting it in writing is better, said Janine Nkosi, a lecturer at Fresno State and regional adviser with Faith in the Valley, a nonprofit organization based in Fresno.
Within seven days of rent being due, send your landlord “verifiable documentation” – which Newsom’s executive order lists termination notices, payroll checks, pay stubs, bank statements, medical bills, or signed letters or statements from an employer or supervisor explaining the situation and supporting the assertion of an inability to pay.
However, if you do these things, and don’t pay, a landlord can still issue an eviction notice, said Nikki Love, managing attorney with the Homelessness Prevention Project at Central California Legal Services. The new executive order gives tenants who have given landlords notice of their COVID-19 financial impacts a longer period – 60 days – to respond to the claim. In the meantime, the courts cannot enforce these specific eviction claims. However, each court operates with slight differences, and it is unclear how they will interpret this order, Love explained.
The Fresno County Superior Court is also closed with some exceptions through at least April 3. New unlawful detainer claims – part of the legal eviction process – can still be filed electronically, according to Love, but are not currently getting processed, with the exception of emergency ex parte lockout proceedings, which are filed to halt lockouts after the eviction order has come from the court.
For any specific questions, Love recommends calling the Central California Legal Services advice line at 800-675-8001. Spanish and Hmong speakers are also available to answer questions. Attorneys are also able to help answer questions in English and Spanish at California Rural Legal Assistance. Call 559-441-8721.
Protections in Fresno
So far, Fresno is the only city in the central San Joaquin Valley with specific eviction protections for tenants who cannot pay April rent.
If you live in Fresno, the City Council has adopted additional protections for renters in the city’s COVID-19 emergency ordinance, which were updated on Wednesday to cover all renters facing nonpayment during the state of emergency. These protections provide up to six months after the city’s emergency declaration is over to pay overdue rent. Here’s what you need to know:
▪ As soon as possible, reach out to your landlord and let them know your situation in writing.
▪ Within 10 days of sending notice to your landlord, a tenant must send documentation or other objective information indicating that you cannot pay rent. The city has suggested a letter from an employer; paycheck stubs before and after the loss of income; or bank statements before and after the loss of income.
▪ The ordinance states a renter cannot be charged any late fees, interest, or other penalties for rent deferred related to a COVID-19 impact.
▪ So far, this ordinance only covers evictions related to nonpayment through April 18. The City Council will need to authorize an extension if the city is still under a state of emergency at that time.
▪ If you think you are getting an illegal eviction notice, call the city’s 311 help line to report the issue.
Public housing
If you live in public housing or any other property managed by the Fresno Housing Authority, all notices to vacate, lease violations, and evictions due to non-criminal activity have been suspended.
If you use a housing choice voucher (Section 8), all deadlines have been extended, including re-certifications and voucher extensions. Families will be granted an extension to contest determinations. Residents are urged to contact HCVResidents@fresnohousing.org to request an extension and discuss the situation.
Other help
For other general questions and advice, Nkosi is encouraging people to reach out to Faith in the Valley, clergy and other church leaders, and mutual aid networks that may help provide direct and immediate cash assistance for rent – and to do so prior to April 1, or whenever the grace period outlined in the lease is over and the landlord is able to serve an eviction notice.
For a list of income and food assistance, visit The Bee’s online guide, which is continually being updated. It’s important to know that while extended unemployment options and stimulus checks are likely on the way for many Americans, it will take a few weeks for the money to arrive. So revisit other options first before assuming those will help with April rent challenges.
Options for homeowners/property owners
If you are experiencing any financial strain, you should reach out to your mortgage lender immediately and apprise them of the situation. Many may be able to negotiate a flexible payment plan and help avoid foreclosure without negative impacts on your credit.
Last week, the U.S. Department of Housing and Urban Development and the Federal Housing Finance Agency (FHFA) announced that single-family mortgages backed by the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac are eligible for lowering or deferring payments for up to 12 months. (Not sure if Fannie or Freddie own your mortgage? HUD has a site where you can check.)
The CARES Act further prohibits any foreclosures or foreclosure-related evictions for properties with mortgages backed by any federal agency, with the exception of vacant or abandoned properties, through May 18.
If your mortgage is backed by USDA, the agency has directed lenders who participate in their programs to work with borrowers on flexible payment plans to keep people in their homes.
Newsom announced Wednesday that if a mortgage is serviced by Wells Fargo, J.P. Morgan Chase, U.S. Bank, or CitiBank, a homeowner may be eligible to defer mortgage payments for three months. Late payments would not be reported to credit agencies during this period.
If Bank of America is the lender, you may be eligible to defer mortgage payments for 30 days.
For Fresno residents, the city’s COVID-19 emergency ordinance encourages lenders to provide a forbearance agreement up to six months for borrowers impacted by COVID-19, without impacting the borrower’s credit.
For multifamily property owners, if your mortgage is backed by Fannie Mae or Freddie Mac or any other federal housing program, you may be eligible for mortgage forbearance for the next 60 days on the condition that evictions are suspended of tenants unable to pay rent due to the impacts of the coronavirus.
And, if you’re a landlord, the California Apartment Association, the largest trade group representing rental providers, has recommended that all landlords freeze rents on residents, pledge to not issue any rent increases, halt evictions on renters affected by COVID-19, and offer flexible payment plans through May 31, 2020.
This story was originally published March 27, 2020 at 4:24 PM.