COVID-19 is adversely impacting large numbers of the population including more than 80% of apartment owners in California that are independent. Small ” mom and pop” owners may not have the means to forgo rental income or they may also be infected with the virus. All housing providers have thousands of dollars in property taxes due in early April. There are mortgage payments to make, maintenance and repair costs to pay, and in some instances, large capital projects that require funding such as seismic retrofitting. However, there has been no offer of financial support to housing providers. Just like renters, property owners may be living month-to-month or struggling to get by on the fixed retirement income and the limited rent income they receive each month. One missed rent check might be devastating for some owners.
- Why it is important for the government to support rental housing providers by postponing property tax payments due in early April.
- The future of multifamily housing providers in Southern California. The moratorium on evictions would put many housing providers in jeopardy of mortgage or other payment defaults. Many AALGA members are retirees on Social Security that rely on their limited quantity of rental units to supplement their limited fixed incomes. SoCal could see homeless landlords if this goes on too long.
- Passing the “Rental Affordability Act”, Prop 10 version 2.0, will bankrupt the multifamily industry and the proposition does not solve the affordability problem. The proposition hurts property owners’ ability to cover their bottom-line expenses and the cost to keep their properties operational thereby forcing many to exit the rental housing business.