Temporary moratorium on foreclosures and unlawful detainer actions: coronavirus (COVID-19).

Existing law confers a power of sale upon a mortgagee, trustee, or any other person to be exercised after a breach of the obligation for which the mortgage or transfer is a security. Existing law requires a trustee, mortgagee, or beneficiary to first file a record in the office of the recorder a notice of default, and establishes other requirements and procedures for completion of a foreclosure sale. This bill would prohibit a person from taking any action to foreclose on a residential real property while a state or locally declared state of emergency related to the COVID-19 virus is in effect and until 91 days after the state of emergency has ended, including, but not limited to, causing or conducting the sale of the real property or submitting for recordation a notice of default. Existing property tax law attaches taxes that are owed on that property as a lien against that property. Existing law generally requires the tax collector to attempt to sell residential property that has become tax defaulted 5 years or more after that property has become tax defaulted. This bill would require a tax collector to suspend the sale, and not attempt to sell, tax-defaulted properties while a state or locally declared state of emergency related to the COVID-19 virus is in effect and until 91 days after the state of emergency has ended. Existing law requires a county recorder to record any instrument, paper, or notice that is authorized or required to be recorded upon payment of proper fees and taxes. This bill would prohibit a party from submitting to a county recorder any instrument, paper, or notice that constitutes a notice of default, a notice of sale, or a trustee's deed upon sale for residential real property during the above-specified declared state of emergency relating to the COVID-19 virus. The bill would provide that any action for foreclosure on a mortgage or deed of trust of residential real property is stayed and the court may take no action unless the court finds that the action is required to further public health and safety and would extend the period for exercising rights, including right of redemption, until 90 days after the state of emergency ends. Existing law establishes a procedure, known as an unlawful detainer action, that a landlord must follow in order to evict a tenant. Existing law provides that a tenant is subject to such an action if the tenant continues to possess the property without permission of the landlord in specified circumstances, including when the tenant has violated the lease by defaulting on rent or failing to perform a duty under the lease. This bill would prohibit a party from submitting for filing a residential unlawful detainer complaint except to address issues of damage to the property, nuisance, or health and safety during the timeframe in which a state of emergency related to the COVID-19 virus is in effect and 91 days thereafter. The bill would prohibit a court from issuing a summons on a complaint for a residential unlawful detainer unless the court finds it is necessary to address damage to the property, nuisance, or health and safety, and would prohibit a court from entering a default or default judgment for restitution in an unlawful detainer action unless it is necessary to protect public health and safety. The bill would authorize a period of rent deferment of up to 12 months from 90 days after the state of emergency ends for a tenant who provides specified documentation to their landlord showing economic hardship resulting from COVID-19, including a substantial reduction in income or substantial out-of-pocket medical expenses. The bill would prohibit the imposition of late fees, fines, or interest during that time. The bill would make these provisions effective in a jurisdiction in which a state or locally declared state of emergency is in effect until 91 days after the state of emergency ends and would repeal these provisions on January 1, 2022. By expanding the crime of perjury, the bill would impose a state-mandated local program. The bill would contain related findings regarding the economic hardships imposed by the COVID-19 virus. This bill would declare that it is to take effect immediately as an urgency statute. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.