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California lawmakers agree to help cover some unpaid rent

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Posted at 12:57 PM, Jan 28, 2021
and last updated 2021-01-28 15:57:09-05

SACRAMENTO, Calif. (AP) — California lawmakers have agreed to use $2.6 billion in federal stimulus money to pay up to 80% of some tenants’ unpaid rent.

But that applies only if landlords agree to forgive the rest of their debt.

Gov. Gavin Newsom is expected to quickly approve the legislation passed by both the Assembly and Senate on Thursday. It's the state’s first major attempt to clear unpaid rents that have piled up during the pandemic as millions of people lost their jobs because of government-ordered business closures.

It's not clear if $2.6 billion is enough to cover all of the unpaid rent, nor how many landlords will accept the deal.