At ReProp Financial, we offer practical solutions for borrowers in the commercial real estate marketplace. While our loans are not generally affected by the passage and implementation of SB 91, we are aware of the issues facing landlords and lenders in the current pandemic. Below are the facts of the bill and some insights for landlords, tenants, and lenders.
California SB91: What Residential Lenders Should Know
Details: California SB 91 was signed into law by Governor Gavin Newsom on January 29, 2021, and went into effect immediately on that date. This new law will extend the protections of the 2020 COVID-19 Tenant Relief Act for five additional months through June 30, 2021. SB 91 also acts to create a new structure within the California government for paying landlords as much as 80 percent of the past-due rents they have failed to receive from tenants during the COVID-19 pandemic. This new bill could provide a glimmer of hope for residential real estate investors while continuing to create a diminished outlook for profits and revenues in this sector of the investment marketplace.