Name: Some California tenants who are deferring rent payments being asked about savings
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Some California tenants who are deferring rent payments being asked about savings

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California renters who have lost income because of the coronavirus shutdown are protected from eviction for 90 days after the health emergency is over, California’s courts have ruled — giving tenants tacit permission to defer paying rent for three months.But what about tenants who have lost income but can pay rent from their savings or investments? Are landlords permitted to ask that tenants dip into their savings or 401(k) accounts in order to meet their rent obligations?The answer is no, according to real estate attorneys. But property owners may still pressure tenants to dip into assets that might help pay the bills until the health emergency order is over, according to tenants’ rights groups.Residents at the Normandy apartment complex at 1155 Ellis St. in San Francisco’s Cathedral Hill neighborhood say the company that manages their building has been distributing letters asking for extensive financial information that goes well beyond evidence of wages lost due to coronavirus.The letters require that tenants “sign a statement under penalty of perjury that you do not have sufficient savings and/or other resources that would allow you to pay rent despite the change in employment status.” In addition, the property owner’s letter requested an employer’s phone number in order to verify the loss of income.More for youThe letters, which The Chronicle reviewed, were unsigned. The building’s bookkeeping is handled by Chandler Properties, which did not return calls seeking comment.Kristina Soriano and Jonas Di Gregorio were among those who received the letter. The couple both lost their jobs because of the pandemic. Di Gregorio was furloughed from two jobs because of the coronavirus, one at a restaurant and the other at a sporting goods retailer. Soriano taught piano at an after-school program in Berkeley; that job has ended until at least this fall.Di Gregorio and Soriano said they have diligently documented their lost income and furnished their landlords with evidence of lost wages, as required by law. But they have not responded to the request for broader financial information.“What they are asking for felt intrusive,” said Soriano. “What is this additional information going to do for you? We feel like we are providing everything that is required under the health order.”On April 6, state judicial leaders barred courts from enforcing eviction orders against renters. The ruling held that eviction orders “threaten to remove people from the very homes they have been instructed to remain in.” The action halts legal procedures used by property owners to initiate and enforce evictions until 90 days after the governor declares an end to the current state of emergency. That’s likely at least through July.Human Rights Committee organizer Leslie Dreyer said the pandemic is prompting property owners to seek new ways to pressure tenants.“I don’t think its illegal to ask for it,” she said. “But they can’t demand it. What we are telling tenants is they don’t have to sign anything. All they have to do is prove that they have lost income because of coronavirus. Tenants should be focused on their safety — their food and health and survival.”Greg August, who also lives at the Ellis Street building, normally works as a banquet waiter at the Marriott Marquis and the Palace Hotel. He has been furloughed from both jobs, and like thousands of other Bay Area residents, is waiting for his first unemployment insurance check.Ratings for the Bay Area and California, updated every 10 minutesHe said his landlord gave him an April 8 deadline to come up with a “partial payment plan,” which attorneys also said would not be allowed under law.“They have to take our word for it that we are out of work,” he said. “It feels like they are bullying us. Why would they lie to us? All I am trying to do is stay legal.”Tenants’ attorney Jacqueline Ravenscroft said “the law is intentionally vague on what documents are required” to prove the financial impact of the pandemic. But she said a property owners’ request that a tenant provide a landlord with financial information beyond income losses related to coronavirus would not be legal.“That would all be protected by financial privacy laws,” she aid.Janan New of the San Francisco Apartment Association agreed that the legal requirement is “pretty narrow.” She said that her trade group is telling property owners to simply ask for documentation of lost income and leave it at that.“Obviously some tenants are going to do their best to pay what they can, while some high-income workers are going to take advantage of the situation to not pay,” she said. “The bottom line is eventually the money is going to become due. I don’t know about you, but if I eventually got a bill for $15,000 in back rent, it would bankrupt me.”Correction: An earlier version of this story misstated the role of Chandler Properties in the management of the Normandy Apartments. It acts as the bookkeeper for the building.J.K. Dineen is a San Francisco Chronicle staff writer. Email: Twitter:Ratings for the Bay Area and California, updated every 10 minutes

California renters who have lost income because of the coronavirus shutdown are protected from eviction for 90 days after the health emergency is over, California’s courts have ruled — giving tenants tacit permission to defer paying rent for three months.But what about tenants who have lost income but can pay rent from their savings or investments? Are landlords permitted to ask that tenants dip into their savings or 401(k) accounts in order to meet their rent obligations?The answer is no, according to real estate attorneys. But property owners may still pressure tenants to dip into assets...

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J.K. Dineen

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Some California tenants who are deferring rent payments being asked about savings

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