Gov. Gavin Newsom on Monday evening issued an executive order to help prevent evictions during the coronavirus outbreak.
The order gives local governments the authority to halt evictions for renters and homeowners but stops short of creating a statewide moratorium. The order also aims to slow foreclosures and help keep utilities running for residents affected by COVID-19.
“People shouldn’t lose or be forced out of their home because of the spread of COVID-19,” Newsom said in a statement. “Over the next few weeks, everyone will have to make sacrifices – but a place to live shouldn’t be one of them. I strongly encourage cities and counties take up this authority to protect Californians.”
The order will be in effect through the end of May and could be extended. It doesn’t mean renters won’t have to pay rent, but it could mean delayed payments for some. The order urges banks and financial institutions to stop foreclosures and evictions during the same time period.
On Friday, eight lawmakers penned a letter to Newsom urging him to take action to keep the state’s residents from being pushed out of their homes.
“As this public health emergency escalates, California’s 17 million renters are at great risk of hardship both from the effects of the virus itself and efforts to control and mitigate its spread,” the group, which included state Sen. Scott Wiener (D-San Francisco) and Assemblywoman Buffy Wicks (D-Oakland), wrote.
Schools, restaurants, bars, stadiums, theaters and other businesses have shuttered, leaving service workers without jobs, at least temporarily.
“An increase in evictions, terminations of housing assistance, foreclosures, and related negative actions will affect the ability of community members to maintain good hygiene and take the basic measures that we have all been advised to take in order to protect ourselves and our communities,” reads the letter.
The group called for a range of temporary policies, including a 45 day or more moratorium on foreclosures and eviction notices, utility shutoffs and new unlawful detainer filings.
Already, major cities across the state have taken steps locally to prevent vulnerable people from being pushed onto the streets. San Jose has moved to enact a moratorium of at least 30 days on evictions against residents who can show that they cannot pay rent because of a loss of income related to COVID-19. San Francisco Mayor London Breed and Los Angeles Mayor Eric Garcetti have issued similar moratoriums on evictions. And the Oakland City Council said it would send a letter to Alameda County Superior Court asking the court to halt ongoing eviction cases and refrain from taking new cases.
According to a report from Zillow’s chief economist, Svenja Gudell, home sales slowed during previous public health crises, but prices remained stable and the market recovered quickly after an outbreak. During the SARS epidemic in 2003, for instance, transaction volume in Hong Kong fell by more than a third, but prices didn’t drop significantly.
