Handling rent debt in California

Question

Due to the pandemic, I was unable to pay rent for my apartment complex that I have now moved out of. I do not have the money to pay this debt because I was unemployed because of the pandemic. Additionally, I am below median income.

Are there options to assist in payment? How can I best handle my debt?

Answer 1

Part of the trillions in stimulus was set aside for rent assistance. In California you need to apply through this site: https://housing.ca.gov/covid_rr/

If one or more individuals in your household meet all of the following, you are eligible to apply:

1. Have qualified for unemployment benefits or experienced a reduction in household income, incurred significant costs, or experienced other financial hardship due to COVID–19; and
2. Demonstrate a risk of experiencing homelessness or housing instability, which may include:
   • a past-due utility or rent notice or eviction notice;
   • unsafe or unhealthy living conditions; or
   • any other evidence of such risk, as determined by the program
3. Have a household income that is not more than 80% of the Area Median Income

If you qualify your landlord will have to waive 20% of unpaid rent in order to get 80% of the unpaid rent via the program (up to certain program limits and depending on availability of funds, it seems).

This seems to be very similar to Colorado's implementation, so I'd imagine most states have similar/identical criteria. Anyone in similar need should just search "covid rent assistance" + their state

Answer 2

Hart CO, as usual, provided a concise answer to your specific question. However there were some stipulations that came up in the comments that may prevent you from qualifying.

In those cases, follow the typical advice for debt that is difficult to impossible to pay:

1. Let the item go to collections
2. Save up cash to pay off the collection
3. When the collections company contacts you say I have $400 cash (or whatever), I will send that to you if I get it in writing that this loan is satisfied and considered paid off.
4. Never make arrangements for payments or give access to your checking account. Send the payment by Visa gift card or money order once the letter is received.
5. If they say no, let them contact you next month and offer a bit more money.

Please note that step 3 assumes you owe something on the order of $5,000 or more.

The landlords are idiots if they do not waive 20-25% of rent owed in order to get the remainder from the government. Doing it the typical way they are unlikely to recover 10%.