GCVCC Business Legislative Update
GCVCC Opposes AB 1436
The GCVCC respectfully OPPOSES AB 1436, as amended on July 2. This bill forces rental property owners to forgo collecting rent for the entire duration of the state of emergency or until April 1, 2021 (whichever comes first) and then prohibits owners from collecting on the unpaid rents for an additional 12 months. The economic hardships stemming from COVID-19 impact everyone, including rental property owners. Shifting the financial calamity caused by state-imposed shutdowns onto rental property owners, with no financial help from the state, merely moves California from one crisis to another. Although we understand the health concerns that led to the shutdown, the resulting economic fallout cannot be remedied simply by shifting the burden on to rental property owners to absorb. AB 1436 would result in widespread foreclosures, tighten credit assessments for borrowers, depress housing construction and lead to job losses across California.