Legislative Update: SB 436 Provides Further Protections to Tenants in Nonpayment of Rent Cases

California is considering new legislation designed to provide new protections for renters facing evictions for nonpayment of rent.  The most significant provision of the bill (SB 436) allows renters to avoid eviction by fully paying delinquent rent any time before the Sheriff executes on a writ of possession.  The bill is touted as promoting housing stability of residents and as a homelessness prevention measure but is just the latest effort in a series of anti-landlord legislation further diminishing a landlord’s property rights. 

Synopsis of SB 436

Existing California law requires landlords to issue and serve a valid three-day notice to initiate an eviction case against the tenant.  Under current law once this notice period lapses, renters can be evicted regardless of whether they are able to pay the full amount due at some point thereafter.  SB 436 would allow a tenant to redeem the tenancy after an unlawful detainer lawsuit is filed, and right up to the point of sheriff lockout.  The tenant’s only obligation would be to tender the full amount of delinquent rent to the landlord.  The bill also ensures that tenants can maintain their residence if they provide documentation of approved rental assistance that covers the entire amount owed.  If either condition is met, SB 436 would require the court to set aside the judgment and restore the tenancy. The tenant would not be required to show any hardship. 

To further protect renters, SB 436 requires landlords to inform tenants of this new right when issuing the three-day notice to pay or quit.  The new protections also need to appear in the court summons.  Landlords would also need to provide the tenant with information necessary for tenants to access rental assistance.

Pros and Cons of SB 436

Supporters of SB 436 argue that it benefits all parties involved by helping renters stay in the rental unit while ensuring landlords get paid.  However, the bill has the potential of sticking landlords with an undesirable tenant.  In addition, the landlord is required to undergo the significant time and expense associated with securing an unlawful detainer judgment, only to have it “set aside” by a last-minute tender of the full amount owing.  The bill does nothing to compensate landlords for that added expense. 

Lynx will keep you apprised of further developments regarding SB 436.  Please contact us with any questions regarding the above, and for all your eviction needs.  We can be reached at 888-441-2355 or info@lynxlegal.com.  Our experienced staff is standing by to take your order or answer any questions you may have.