Please ensure Javascript is enabled for purposes of website accessibility
California Senate Proposal Tackles Rents, Economic Recovery
gvw_ap_news
By Associated Press
Published 5 years ago on
May 12, 2020

Share

SACRAMENTO — The government would cover rent payments for some low-income Californians impacted by the coronavirus under a proposal backed by state Senate leaders.

The proposal is part of an ambitious economic recovery plan leaders unveiled Tuesday, which includes a separate $25 billion “economic recovery fund” that small businesses, nonprofits and local governments could tap to help weather the virus-induced downturn.

The Senate wants to forgive rents for low-income tenants, giving landlords tax credits equal to the value of their missed payments, which they can keep or sell for cash. Tenants would then have up to 10 years to pay back their missed rents to the state, with some not having to pay the full amount because of an unspecified “hardship exemption.”

“This is not a giveaway to anyone,” Democratic Sen. Steven Bradford said. “Our goal is to keep tenants housed and keep landlords out of foreclosure.”

The proposal is part of an ambitious economic recovery plan leaders unveiled Tuesday, which includes a separate $25 billion “economic recovery fund” that small businesses, nonprofits and local governments could tap to help weather the virus-induced downturn.

The money would come from people voluntarily prepaying their taxes for 2024 through 2033. The state would get the money upfront, while the taxpayers would get a discount.

It is estimated to take two years to fill up the fund. The state could start spending the money sooner to help stimulate the economy. But beginning in 2024, state revenues would be up to $3 billion less each year until 2033. Legislative leaders believe the economic crisis will have passed and the state’s annual operating budget of more than $200 billion could easily absorb the losses.

“The ultimate effect of course would enable taxpayers to invest in California to help California struggling through this very challenging crisis,” Democratic Sen. Bob Hertzberg said.

Tom Bannon, chief executive officer for the California Apartment Association, called the proposal a “creative effort.” He said the association that represents owners, investors, developers and managers wants to “refine” the proposal, but did not give details.

[covid-19-tracker]

Some Republican Leaders Have Warned Not to Count on That Money

The proposals come as state lawmakers are scrambling to craft a state budget that will have $54.3 billion less money to spend than lawmakers had planned in January. Gov. Gavin Newsom is scheduled to reveal his spending proposal on Thursday.

Senate President Pro Tempore Toni Atkins on Tuesday vowed the body would avoid “major ongoing program cuts or broad middle class tax increases,” saying those options work in the short-term but “actually cause more economic damage and prolong our budget struggles.”

Senate Budget Committee chair Holly Mitchell, a Democrat from Los Angeles, said lawmakers have identified savings approaching $100 billion over the next two years. About $41 billion would come from the state’s reserves and other budget maneuvers that include internal borrowing and shifting some costs to future years.

Most of the rest would come from the federal government, with lawmakers estimating they would get $33 billion from what they hope will be an upcoming aid package proposed in Congress. Newsom and leaders from four other western states signed a letter to Congress on Monday asking for $1 trillion in aid for state and local governments.

But some Republican leaders have warned not to count on that money. Senate Republican Leader Shannon Grove, who represents Bakersfield, did not sign the letter asking Congress for the additoinal help. She said the request “comes at a price.”

“I could not support an effort that continues to allow our state government to run (amok) without protecting industries by streamlining burdensome government regulations, reforming unsustainable projects, and supporting private businesses which are California’s vital economic engine,” she said.

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

World’s Largest Almond Processor Will Shutter Sacramento Plant. 600 Workers Impacted

DON'T MISS

Trump Eyes Major Funding Cuts for California, Including All Public Universities

DON'T MISS

Farming Regulation Costs Rise 1,300% Since 2006: Cal Poly

DON'T MISS

Southern California Air Regulators Weigh a Plan to Phase Out Gas Furnaces and Water Heaters

DON'T MISS

US Supreme Court Allows DOGE Broad Access to Social Security Data

DON'T MISS

Doctors Were Preparing to Remove Their Organs. Then They Woke Up.

DON'T MISS

Abrego Garcia Is Returned to US From El Salvador

DON'T MISS

Proud Boys Convicted in Jan. 6 Attack Sue Government on Claims of ‘Political Persecution’

DON'T MISS

FDA’s AI Assistant ‘Elsa’ Fails Its First Day on the Job

DON'T MISS

Documentary Series Goes Inside Trump’s Bubble

UP NEXT

Trump Eyes Major Funding Cuts for California, Including All Public Universities

UP NEXT

Southern California Air Regulators Weigh a Plan to Phase Out Gas Furnaces and Water Heaters

UP NEXT

Doctors Were Preparing to Remove Their Organs. Then They Woke Up.

UP NEXT

FDA’s AI Assistant ‘Elsa’ Fails Its First Day on the Job

UP NEXT

Newsom Promises Funding to Jump-Start ‘Science of Reading’

UP NEXT

Rancho Cucamonga Prepares for First US Bullet Train Hub in 2028

UP NEXT

8 Ways Musk and Trump Could Inflict Pain on Each Other

UP NEXT

D-Day Veterans Return to Normandy to Mark 81st Anniversary of Landings

UP NEXT

Lambda Legal, a Nonprofit Supporting LGBTQ+ Rights, Exceeded Fundraising Goal by $105M

UP NEXT

Trump Threatens Musk’s Government Deals as Feud Explodes Over Tax-Cut Bill

Southern California Air Regulators Weigh a Plan to Phase Out Gas Furnaces and Water Heaters

10 hours ago

US Supreme Court Allows DOGE Broad Access to Social Security Data

10 hours ago

Doctors Were Preparing to Remove Their Organs. Then They Woke Up.

10 hours ago

Abrego Garcia Is Returned to US From El Salvador

10 hours ago

Proud Boys Convicted in Jan. 6 Attack Sue Government on Claims of ‘Political Persecution’

11 hours ago

FDA’s AI Assistant ‘Elsa’ Fails Its First Day on the Job

11 hours ago

Documentary Series Goes Inside Trump’s Bubble

11 hours ago

Tulare County Gang Member Convicted of Trying to a Murder Police Officer

11 hours ago

Newsom Promises Funding to Jump-Start ‘Science of Reading’

12 hours ago

Feds Indict SoCal Hospice CEO for Medicare Fraud in Fresno and Kern Counties

12 hours ago

World’s Largest Almond Processor Will Shutter Sacramento Plant. 600 Workers Impacted

The world’s largest almond processor, Blue Diamond Growers, says it will close its Sacramento processing plant this year The almond co...

8 hours ago

8 hours ago

World’s Largest Almond Processor Will Shutter Sacramento Plant. 600 Workers Impacted

9 hours ago

Trump Eyes Major Funding Cuts for California, Including All Public Universities

10 hours ago

Farming Regulation Costs Rise 1,300% Since 2006: Cal Poly

11 hours ago

Southern California Air Regulators Weigh a Plan to Phase Out Gas Furnaces and Water Heaters

11 hours ago

US Supreme Court Allows DOGE Broad Access to Social Security Data

11 hours ago

Doctors Were Preparing to Remove Their Organs. Then They Woke Up.

11 hours ago

Abrego Garcia Is Returned to US From El Salvador

12 hours ago

Proud Boys Convicted in Jan. 6 Attack Sue Government on Claims of ‘Political Persecution’

Help continue the work that gets you the news that matters most.

Search

Send this to a friend