Page 6 - AMM-SEP2021-1

INDUSTRY Update
California Rental Housing Association (CalRHA) Files Lawsuit Against State of California
OComplaint Alleges Violation of the Fifth Amendment Causing Severe Financial Distress
n August 5, 2021, the California losses directly caused by the State of Rental Housing Association California’s ongoing overreaching eviction (CalRHA), representing over moratorium. The state continues to 19,000 rental housing providers extend the eviction moratorium with no that own or manage nearly distinction between residents who cannot 537,000 rental units, filed a afford to pay due to the pandemic and lawsuit against the State of residents who can afford to pay their rent
California in the federal district court for the but are using the moratorium to violate
Eastern District of California (Sacramento). The Apartment Association of Greater Los Angeles is the largest CalRHA affiliate and has provided substantial funding to pursue the litigation.
Joined by two individual rental housing owners, CalRHA is challenging the constitutionality of Assembly Bill 832, the State’s third extension of the statewide moratorium on evictions for nonpayment of rent. The lawsuit alleges that the statewide eviction moratorium unconstitutionally violates rental housing owners’ basic property rights, and substantially—and retroactively— impairs existing rental agreements and leases, which give owners the contract right to repossess their units for nonpayment of rent. The lawsuit, filed under the federal civil rights act, seeks a declaration that Assembly Bill 832 is unconstitutional and also seeks an injunction prohibiting its enforcement.
“We tried working with our legislators and the governor to reach an agreement that would recognize the financial burdens faced by both rental housing providers and renters. They chose to ignore the financial burdens of small and medium rental property providers. The courts are our last resort. Rental housing providers across the state are suffering severe economic distress and
6 SEPTEMBER 2021 - APARTMENT MANAGEMENT MAGAZINE AMM1/6
their rental agreements. Rental housing providers continue to provide housing, and in some cases, for no compensation which leaves us with no recourse. Small and medium rental housing providers rely on rental income to pay their mortgages and maintenance expenses, while supporting their own families. We wake up every day thinking about how to house people – that is what we want to do – and government action is interfering with our ability to effectively do so. This lawsuit is intended to restore our rights and allow us to enforce rental contracts that have been unnecessarily expropriated for the past 16-plus months.”
Christine Kevane LaMarca, CalRHA President
The California Rental Housing Association represents 19,000+ members who provide nearly 537,000 rental units. CalRHA’s members are primarily small and medium sized rental housing providers throughout the State of California. CalRHA’s purpose is to advocate in the best interest of the rental housing industry and collectively address industry needs. All members of the Apartment Association of Greater Los Angeles are also members of CalRHA at no charge.