State Charter Modernization; Eviction Extension & Rent Relief

(L-R): California Senate Appropriations Committee Chair Anthony Portantino (D-La Canada Flintridge); and California Gov. Gavin Newsom
(L-R): California Senate Appropriations Committee Chair Anthony Portantino (D-La Canada Flintridge); and California Gov. Gavin Newsom

Senate Bill 269, authored by Senate Appropriations Committee Chair Anthony Portantino (D-La Canada Flintridge), passed the Assembly Banking Committee with unanimous bipartisan support this week.

This state-charter credit union modernization bill will provide updates in a number of areas and bring the California-state credit union charter into the 21st Century.

SB 269 is now headed to the Assembly Appropriations Committee where it will be examined and scored for its fiscal impact to the State of California. After appropriations, SB 269 will need to pass the Assembly Floor and then head back to the Senate Floor to concur recent amendments to the bill.

"The League would like to thank Assembly Banking Chair Tim Grayson and Vice Chair Phil Chen for their help with this bill," said Robert Wilson, vice president of state government affairs for the California Credit Union Leauge. "And, of course, we would also like to thank the author, Senator Portantino, for his continued leadership on this important issue."

Assembly Bill 832 Signed Into Law
On Monday, California Gov. Gavin Newsom and legislative leaders signed Assembly Bill 832, which extends the current eviction moratorium through Sept. 30, 2021.

As the League reported last week, provisions include increasing reimbursement to 100 percent for both rent that is past-due and prospective payments for both tenants and landlords.

Additionally, the bill ensures rental assistance dollars stay in California by prioritizing cities and counties with unmet needs, and it uses the judicial process to ensure tenants and landlords have attempted to obtain rental assistance.

Applicable to credit unions in AB 832 is the following: Existing law, the COVID-19 Small Landlord and Homeowner Relief Act of 2020, among other things, requires that a mortgage servicer, as defined, that denies a forbearance request during the effective time period provide specified written notice to the borrower, as defined, that sets forth the specific reason or reasons that forbearance was not provided if certain conditions are met. The act defines the “effective time period” to mean the period between the operational date of the act and September 1, 2021.

AB 832 would extend this “effective time period” until Dec. 1, 2021.

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