By Matt Levin, Cal Matters, May 12, 2020
As missed rent payments and delinquent mortgages pile up across the state, California Democratic lawmakers Tuesday introduced a series of sweeping proposals aimed at shielding homeowners, renters and landlords from the economic fallout of the COVID-19 pandemic.
A plan put forward by Sen. Toni Atkins, Democrat from San Diego and leader of the state Senate, would grant qualifying renters 10 years to repay missed payments directly to the state, which would in turn compensate landlords for the missed rent with tax credits that could be sold to pay mortgages and other bills.
A separate bill from Assemblywoman Monique Limon, Democrat from Santa Barbara, would allow California homeowners to request a forbearance on their mortgages for nearly a year while requiring mortgage servicers in most circumstances to tack on missed payments in monthly installments at the end of the loan. The legislation would also allow borrowers of auto loans, payday loans and other debts to postpone payments without fear of immediate repossession or other penalties.
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