COVID-19 Moratorium in Los Angeles

Most of you reading this will have heard about the impact COVID-19 has had on the Real Estate market, especially renters and landlords in particular. In this blog, we will provide an overview of the current moratorium and what it means for both renters and homeowners in the city.

The Basics of the COVID-19 Moratorium

The COVID-19 moratorium in Los Angeles is a series of emergency measures put in place by the local government to provide temporary relief to individuals and families facing financial hardships due to the pandemic. It primarily addresses two key areas: eviction protections for renters and foreclosure protections for homeowners.

Eviction Protections for Renters

1. Eviction Moratorium: The eviction moratorium in Los Angeles temporarily bans evictions for non-payment of rent or no-fault evictions, as long as tenants can demonstrate that their inability to pay is due to COVID-19-related circumstances.

2. Rent Freeze: During the moratorium, landlords are prohibited from increasing rents for residential properties covered by the ordinance.

3. Tenant Declaration: Tenants are required to provide a declaration to their landlords stating that they have been financially impacted by COVID-19. This declaration serves as protection against eviction for non-payment of rent.

4. Repayment Plans: Renters have the right to enter into repayment plans with their landlords for unpaid rent accrued during the moratorium period. These plans allow renters to gradually catch up on their rent payments.

Foreclosure Protections for Homeowners

1. Foreclosure Moratorium: Homeowners with federally backed mortgages (FHA, Fannie Mae, Freddie Mac, etc.) are protected from foreclosure until September 30, 2023, if they have experienced financial hardship due to COVID-19.

2. No Negative Credit Reporting: Lenders are prohibited from reporting late or missed payments to credit bureaus for homeowners who receive mortgage forbearance.

3. Mortgage Forbearance: Eligible homeowners can request mortgage forbearance, allowing them to temporarily pause or reduce their mortgage payments without incurring late fees or penalties.

What This Means for Homeowners

If you are a homeowner in Los Angeles facing financial difficulties due to COVID-19, the moratorium provides protection against foreclosure. It is essential to communicate with your mortgage servicer, explore mortgage forbearance options, and understand the terms and conditions to ensure you don't risk losing your home.

What This Means for Renters

Renters in Los Angeles experiencing financial hardships related to the pandemic should take advantage of the eviction protections and rental assistance programs available. Ensure you provide the required tenant declaration to your landlord, engage in open communication, and seek rental assistance if needed.

The COVID-19 moratorium in Los Angeles has been a lifeline for many residents during these uncertain times. It is important to bear in mind that the details of the moratorium and protocol is constantly changing, so check for updates from government agencies and local authorities to ensure you have the most up to date information.