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[godhandiscen]

California Will Pay Off All Past-Due Rent

California Gov. Gavin Newsom (D) said the state "will pay off all the past-due rent that accumulated in the nation’s most populated state because of the fallout from the coronavirus pandemic, a promise to make

politicalwire.com

California Gov. Gavin Newsom (D) said the state “will pay off all the past-due rent that accumulated in the nation’s most populated state because of the fallout from the coronavirus pandemic, a promise to make landlords whole while giving renters a clean slate,” the Associated Press reports.

California weighs extending eviction protections past June

California Gov. Gavin Newsom and lawmakers are negotiating whether to extend the state's ban on evictions for unpaid rent.

apnews.com

This is awesome, but now people are mad that landlords don’t get to suffer and get back their investment.

 

[StreetsofBeige]

Wow. For once landlords get a break. Good on California.

I get it that some people are in a cash crunch and cant pay bills. Believe it or not, that also extends to property owners, which some reason people think every Mr. Furley is a billionaire, the property is paid off and can float it without using rent to pay the mortgage on it.

For most landlords, the way we pay off the mortgage (which is in our name if something fucks up), is using rent collected to the pay the bank, along with other costs like utility bills, property tax (which can be big too), renters insurance and occasional repairs.

There's a misconception that every rent collected goes into our wallets as a freebie and then we all go golfing.

 

[Pagusas]

Thats great... but where is this money coming from?

 

[StreetsofBeige]

Thats great... but where is this money coming from?

1. Taxpayers

2. From the usual never ending government pool of debt

3. A bit of both

 

[godhandiscen]

Thats great... but where is this money coming from?

California has a budget surplus this year from the IPO frenzy of 2020. People had such extreme capital gains payouts that California became rich once again.

California has a staggering $75.7B budget surplus

California's coffers are bulging thanks to the high-flying Silicon Valley, surging stock market and a large share of professionals who were able to continue working remotely during Covid-19.

www.politico.com

 

[Pagusas]

California has a budget surplus this year from the IPO frenzy of 2020. People had such extreme capital gains payouts that California became rich once again.

California has a staggering $75.7B budget surplus

California's coffers are bulging thanks to the high-flying Silicon Valley, surging stock market and a large share of professionals who were able to continue working remotely during Covid-19.

www.politico.com

Good for them, glad to see it being used where its need Wonder if Texas did anything similar.

 

[StreetsofBeige]

California has a budget surplus this year from the IPO frenzy of 2020. People had such extreme capital gains payouts that California became rich once again.

California has a staggering $75.7B budget surplus

California's coffers are bulging thanks to the high-flying Silicon Valley, surging stock market and a large share of professionals who were able to continue working remotely during Covid-19.

www.politico.com

Wow. Use it wisely Gavin!

 

[BadBurger]

Just given the nature of California's tax structure, their insane revenues, and how much they benefit from any rising tide in numerous industries, it was no question they'd have another huge budget surplus after this. I'm just happy to see they're putting some of it to the positive use of all.

In fact in the nearly-post pandemic world of increased high wage remote work and increasing wages on the low end of things, I wouldn't be surprised if California grows even more economically in the next two years and builds even more of a surplus despite their intended spending.

 

[kiunchbb]

So people that purposely don't pay rent won? I hope there's an income check for this.

 

[IntentionalPun]

1. Taxpayers

2. From the usual never ending government pool of debt

3. A bit of both

They have a huge surplus of cash...

 

[Pagusas]

Good for them, glad to see it being used where its need Wonder if Texas did anything similar.

Quoting myself to answer my own question: Yes Texas now has a budget surplus too!

Texas’ pandemic budget shortfall disappears, as latest forecast shows a surplus

The latest revenue estimate doesn’t take into account all of the federal relief that has been sent to Texas over the past year by Congress through pandemic relief packages. State lawmakers have wrestled with how and who has the authority to spend that money.

www.texastribune.org

 

[godhandiscen]

So people that purposely don't pay rent won? I hope there's an income check for this.

Only people with low income/lost their job qualify for this.

 

[HoodWinked]

The prudent thing to do is spend some of the surplus but keep most of it for lean years. But what will likely happen is they will spend it all to set a new base line for spending so next year they'll expect even more.

 

[Pagusas]

The prudent thing to do is spend some of the surplus but keep most of it for lean years. But what will likely happen is they will spend it all to set a new base line for spending so next year they'll expect even more.

Or save it for the disaster recovery money you are going to need after another round of forest fires destroys the state again this year.... Or get those sea water processing plants up and running

 

[CloudNull]

This is great to hear. I wonder if any other states will follow suite. If they don’t the foreclosures are going to be wild.

 

[down 2 orth]

People are going to cheat the hell out of this system. Cutting tax and fucking off is really the best thing a government can do for its people.

 

[Punished Miku]

I'm a fan of people not being homeless and having their lives ruined.

 

[ThatStupidLion]

probably has more to do with the banks than it does with the landlords

 

[HellforLeather]

probably has more to do with the banks than it does with the landlords

Honestly, it seems like the best you can hope for these days is that the people and the banks interests align in situations like this.

 

[Shadowplay1979]

Cool so now not only will i keep paying the rent i have for the last 4 years but ill be paying taxes to pay for the lazy shits in this house who havnt paid rent in 4 years and who have been on eviction notice for 4 years ( they keep extending it by suing everyone in the house for harassment so they can just keep doing drugs and never have t get a job )

thats IF this is coming from taxpayers

 

[Master Of Illusion]

I miss serfdom

 

[Dr Bass]

Thats great... but where is this money coming from?

Landlords.

 

[DeepBreath87]

Um… at some point I guess I have to wonder what happens to the people who busted their ass to pay their rent all year? Does the government pay their bills too, or is it just a payoff for squatters?

 

[Infiltrator Irelia]

Great news. Any help people can get in a time of financial surplus for the state is money well spent.

 

[sol_bad]

People are going to cheat the hell out of this system. Cutting tax and fucking off is really the best thing a government can do for its people.

Cutting tax? As in citizens should neve pay tax? Ever?

 

[DeepBreath87]

Cutting tax? As in citizens should neve pay tax? Ever?

I mean the problem is one of fundamental fairness. The government is essentially going to pay off a bunch of back rent to people who wouldn’t or couldn’t pay their bills this past year. I get that. The government was the reason many people lost their jobs.

HOWEVER, there are people who worked really hard this past year. The also paid their rent. Those people are now suckers. They worked hard, and were responsible. And they’re getting fuck all, while their neighbor who didn’t pay is getting bailed out by Gavin Newsome. I’m not sure what the right answer is, but forgive me for not cheering bail outs for squatters while hard working people get treated like shit.

 

[jshackles]

I mean the problem is one of fundamental fairness. The government is essentially going to pay off a bunch of back rent to people who wouldn’t or couldn’t pay their bills this past year. I get that. The government was the reason many people lost their jobs.

HOWEVER, there are people who worked really hard this past year. The also paid their rent. Those people are now suckers. They worked hard, and were responsible. And they’re getting fuck all, while their neighbor who didn’t pay is getting bailed out by Gavin Newsome. I’m not sure what the right answer is, but forgive me for not cheering bail outs for squatters while hard working people get treated like shit.

I get this sentiment (as one of the hard working people that paid my bills, though not in California) but you seem to be forgetting that there are actual people who were burdened by this and calling them squatters isn't helping anyone. Like most government assistance programs, this will absolutely go towards people who don't deserve it. But there are also people who have struggled working multiple part time jobs and barely had enough money to put food on the table. There are landlords that are real people (and not just huge banks or portfolio conglomerates) who are probably facing foreclosure on these properties (once that's legal again) because they haven't been able to make the mortgage payments, let alone their lost revenues that may have been going towards putting food on their table. Without being able to evict people, there was a real concern that once the moratorium ended there would be massive amounts of evictions clogging up the court system and sending rent prices skyrocketing even higher than they are now in California as those people try to make up their losses. This culminates in either a massive lower and middle income migration away from the state, or an explosion in homelessness, neither of which is good for anyone involved here. For the people this helps, they no longer have to worry about potentially facing a $15,000 - $30,000 bill of back rent to keep living where they're living.

The people who are actually squatting and not working, who are unable to pay rent, they'll get what's coming to them in the form of an eventual eviction. No need to be so cruel and cynical that you need to spin this as something bad. If you think you're a sucker for having done well enough for yourself that you were able to pay your rent and bills all last year, some self reflection on your own empathy might be in order.

 

[Guileless]

Russian mob will get most of this like with they did with the extra jobless benefits.

 

[Bladed Thesis]

Yes, they have a budget surplus but that doesn't mean they don't have insane debt.

They should be putting the surplus towards paying off debt. If you had a credit card you were making minimum payments on every month and suddenly came into $1000 just spending that $1000 on a new pc or something instead of putting it towards your debt isn't very financially responsible. Put it towards your debt, California.

Edit, The total debt for California is $583b.

State of California Debt Clock

 

[sol_bad]

I mean the problem is one of fundamental fairness. The government is essentially going to pay off a bunch of back rent to people who wouldn’t or couldn’t pay their bills this past year. I get that. The government was the reason many people lost their jobs.

HOWEVER, there are people who worked really hard this past year. The also paid their rent. Those people are now suckers. They worked hard, and were responsible. And they’re getting fuck all, while their neighbor who didn’t pay is getting bailed out by Gavin Newsome. I’m not sure what the right answer is, but forgive me for not cheering bail outs for squatters while hard working people get treated like shit.

That is one of the great things about first world governments though, they are really there to help the people. I certainly can't say the same for the Philippines.

Tax money is there to help the needy. You should be very proud that you were privileged to pay your bills and rent, you may have struggled but you were able to accomplish something that was very difficult for many people. Yes, there will be lazy asshats who will leech off opportunities like this, same happens in Australia. Chances are this will help more people in need than people trying to screw the system.

There are many things that your tax money goes towards that you will not take advantage of. But it's there to help society as a whole.

I have no idea how things have worked in America with this covid thing but they should have stepped in earlier to help the businesses stay afloat. Keeping businesses afloat would have helped people keep their jobs.

 

[DeepBreath87]

I get this sentiment (as one of the hard working people that paid my bills, though not in California) but you seem to be forgetting that there are actual people who were burdened by this and calling them squatters isn't helping anyone. Like most government assistance programs, this will absolutely go towards people who don't deserve it. But there are also people who have struggled working multiple part time jobs and barely had enough money to put food on the table. There are landlords that are real people (and not just huge banks or portfolio conglomerates) who are probably facing foreclosure on these properties (once that's legal again) because they haven't been able to make the mortgage payments, let alone their lost revenues that may have been going towards putting food on their table. Without being able to evict people, there was a real concern that once the moratorium ended there would be massive amounts of evictions clogging up the court system and sending rent prices skyrocketing even higher than they are now in California as those people try to make up their losses. This culminates in either a massive lower and middle income migration away from the state, or an explosion in homelessness, neither of which is good for anyone involved here. For the people this helps, they no longer have to worry about potentially facing a $15,000 - $30,000 bill of back rent to keep living where they're living.

The people who are actually squatting and not working, who are unable to pay rent, they'll get what's coming to them in the form of an eventual eviction. No need to be so cruel and cynical that you need to spin this as something bad. If you think you're a sucker for having done well enough for yourself that you were able to pay your rent and bills all last year, some self reflection on your own empathy might be in order.

They’re squatters by definition. That doesn’t mean they’re bad people. Squatters are people who live in a place they do not own without paying their bills. I get that it has a negative connotation, but I truly don’t mean it that way. What I mean is that rewarding people who did not pay their bills is spitting in the face of people who did. The responsible people should’ve saved their money and waited for Newsome to come bail them out. They’d probably have a cool 50,000 based on California rent prices.

I don’t blame the people who didn’t pay their bills. You never blame the people. You blame the people in charge. I don’t know what the right answer is. But I do know that this is shitting on responsibility and hard work. I can never cheer that.

 

[StreetsofBeige]

Yes, they have a budget surplus but that doesn't mean they don't have insane debt.

They should be putting the surplus towards paying off debt. If you had a credit card you were making minimum payments on every month and suddenly came into $1000 just spending that $1000 on a new pc or something instead of putting it towards your debt isn't very financially responsible. Put it towards your debt, California.

Edit, The total debt for California is $583b.

State of California Debt Clock

It's government. The only organizations (or person) immune to forever debt with zero budgeting or sense of urgency.

"Just add it to the bill"

 

[Pagusas]

It's government. The only organizations (or person) immune to forever debt with zero budgeting or sense of urgency.

"Just add it to the bill"

Well they do own the irs, military and lawn enforcement, lol, so the government really has no one to fear regarding debt.

 

[ArtemisClydeFrog]

I mean the problem is one of fundamental fairness. The government is essentially going to pay off a bunch of back rent to people who wouldn’t or couldn’t pay their bills this past year. I get that. The government was the reason many people lost their jobs.

HOWEVER, there are people who worked really hard this past year. The also paid their rent. Those people are now suckers. They worked hard, and were responsible. And they’re getting fuck all, while their neighbor who didn’t pay is getting bailed out by Gavin Newsome. I’m not sure what the right answer is, but forgive me for not cheering bail outs for squatters while hard working people get treated like shit.

Yeah every person behind on rent is a squatter lmao, stop. Lots of broad generalizations with no facts but lots of salt.

 

[ArtemisClydeFrog]

Well they do own the irs, military and lawn enforcement, lol, so the government really has no one to fear regarding debt.

I'd vote all these folks in as lawn enforcement

 

[AJUMP23]

Ol’ Gav must have some property where people didn’t pay rent.

 

[DeepBreath87]

Yeah every person behind on rent is a squatter lmao, stop. Lots of broad generalizations with no facts but lots of salt.

Again, explain how the family who worked their ass off this past year to pay their rent isn’t a sucker now. Why did they waste their time going to work and away from their kids? Why didn’t they just keep that money and wait for Gavin to come pay their bills? Hard working people in California are getting shit on with this. California is going to give tens of thousands of dollars to people who didn’t pay their bills. The people that did get jack shit. Explain that in a way that doesn’t seem like you’re spitting in the face of people that worked hard and did the right thing.

A person who hasn’t been paying rent for a year is a squatter. Just because there is an eviction moratorium, doesn’t change the fact that a squatter is a squatter. Living on a property you do not own and not paying rent is squatting. By definition. If you don’t like that, take it up with the dictionary. Doesn’t make them bad people. But squatting shouldn’t be rewarded. Give them some kind of zero interest loan they can pay over 15 years or something.

 

[ManaByte]

Ol’ Gav must have some property where people didn’t pay rent.

 

[Come On Tars]

They better. You don't get to lock shit down and not foot the bill.

 

[StreetsofBeige]

Again, explain how the family who worked their ass off this past year to pay their rent isn’t a sucker now. Why did they waste their time going to work and away from their kids? Why didn’t they just keep that money and wait for Gavin to come pay their bills? Hard working people in California are getting shit on with this. California is going to give tens of thousands of dollars to people who didn’t pay their bills. The people that did get jack shit. Explain that in a way that doesn’t seem like you’re spitting in the face of people that worked hard and did the right thing.

A person who hasn’t been paying rent for a year is a squatter. Just because there is an eviction moratorium, doesn’t change the fact that a squatter is a squatter. Living on a property you do not own and not paying rent is squatting. By definition. If you don’t like that, take it up with the dictionary. Doesn’t make them bad people. But squatting shouldn’t be rewarded. Give them some kind of zero interest loan they can pay over 15 years or something.

I agree with what you say. I had a tenant deadbeat me and bolted. It sucks, but when you got losers to deal with, sometimes you got to take your lumps.

As for the loan idea, it sounds good on paper, but as my real estate lawyer told me about going after the tenant for some back rent, it's not worth the hassle, time, and there's no guarantee they can even pay it anyway. So he recommended to me just cut the cord, let her go and eat some loss.

Its really no different than bankruptcy law where someone so burdened gets a clean slate and all creditors get borked. That person getting a shitty credit rating means nothing to other people owed money.

But in modern society, long leashes are given to people to give them a break whereas the business, landlord or credit card company owed money is ASSUMED to be a punching bag and eat the costs because every one of them is a billionaire high and mighty banker that can absorb losses no sweat.

 

[xrnzaaas]

Thats great... but where is this money coming from?

the printers, duh

 

[e&e]

They’re squatters by definition. That doesn’t mean they’re bad people. Squatters are people who live in a place they do not own without paying their bills. I get that it has a negative connotation, but I truly don’t mean it that way. What I mean is that rewarding people who did not pay their bills is spitting in the face of people who did. The responsible people should’ve saved their money and waited for Newsome to come bail them out. They’d probably have a cool 50,000 based on California rent prices.

I don’t blame the people who didn’t pay their bills. You never blame the people. You blame the people in charge. I don’t know what the right answer is. But I do know that this is shitting on responsibility and hard work. I can never cheer that.

We paid our rent; I like when people don’t lose a roof over their head for something not of their own doing. No it doesn’t bother us…I don’t care if 1% was able to take advantage of that system somehow since it’s helping the 99%…was that clear for you? You used the words “didn’t” instead of “couldn’t”, you clearly have no empathy and that’s your problem…

 

[HoodWinked]

Are Wall Street hedge funds buying up homes in the Bay Area?

Hedge funds and other investment entities are purchasing some single family homes in the...

www.sfchronicle.com

Perfection. This was the reason Blackrock and other hedge funds were piling in and buying up homes for rent. It's all just so blatant. Guess he's getting those big donors lined up.

 

[Bernd Lauert]

It's a way to prevent what happened in 2008. If landlords can't pay their mortgages, the whole system comes crashing down.

 

[DeepBreath87]

We paid our rent; I like when people don’t lose a roof over their head for something not of their own doing. No it doesn’t bother us…I don’t care if 1% was able to take advantage of that system somehow since it’s helping the 99%…was that clear for you? You used the words “didn’t” instead of “couldn’t”, you clearly have no empathy and that’s your problem…

I empathize with the parents who busted their ass this past year, in the middle of a pandemic, to scrape by going to work everyday. People who paid their rent, homeschooled their kids, and now getting fucked while their neighbor, who yes either couldn’t or wouldn’t pay their rent, is getting gifted 10s of thousands of dollars. Tell me how the person living paycheck to paycheck who paid their rent is supposed to feel?

I’ve noticed no one wants to answer that. And it’s because everyone knows: the hard working responsible guy is getting spit on. “Thanks, “essential worker” for working hard during the pandemic. Here’s a pat on the fucking head while we take care of your neighbor. Try not to feel like the sucker you are.”

 

[DeepBreath87]

I agree with what you say. I had a tenant deadbeat me and bolted. It sucks, but when you got losers to deal with, sometimes you got to take your lumps.

As for the loan idea, it sounds good on paper, but as my real estate lawyer told me about going after the tenant for some back rent, it's not worth the hassle, time, and there's no guarantee they can even pay it anyway. So he recommended to me just cut the cord, let her go and eat some loss.

Its really no different than bankruptcy law where someone so burdened gets a clean slate and all creditors get borked. That person getting a shitty credit rating means nothing to other people owed money.

But in modern society, long leashes are given to people to give them a break whereas the business, landlord or credit card company owed money is ASSUMED to be a punching bag and eat the costs because every one of them is a billionaire high and mighty banker that can absorb losses no sweat.

Look, I get what you’re saying. But paying off back rent for everyone who didn’t pay this year is shitty. It’s really that simple. If Gavin Newsome wants to pay everyone’s rent for this past year, ok. But if we’re just going to gift the people who weren’t able to meet their responsibilities (and I get it often wasn’t their fault), we are then shitting on the people that were able to be responsible to the tune of 10s of thousands of dollars.

Perhaps their is no better solution. But cheering for this like it’s some great thing is pathetic. At best it’s lesser evil. The government has all kinds of other solution. Do some sort of tax solution where the government pays the rent then charges the person who they helped via their taxes over 15-20 years with zero interest. There has the be a solution that is not this.

 

[StreetsofBeige]

Look, I get what you’re saying. But paying off back rent for everyone who didn’t pay this year is shitty. It’s really that simple. If Gavin Newsome wants to pay everyone’s rent for this past year, ok. But if we’re just going to gift the people who weren’t able to meet their responsibilities (and I get it often wasn’t their fault), we are then shitting on the people that were able to be responsible to the tune of 10s of thousands of dollars.

Perhaps their is no better solution. But cheering for this like it’s some great thing is pathetic. At best it’s lesser evil. The government has all kinds of other solution. Do some sort of tax solution where the government pays the rent then charges the person who they helped via their taxes over 15-20 years with zero interest. There has the be a solution that is not this.

The thing is, it's government youre dealing with. Their idea of making things go away is blanket laws that sweep things under the table, and catering to the lowest commo denominator (broke people) to give them a break.

You're not going to get government getting involved with millions of deadbeat renters with 20 year payback program loan guarantees.

I agree that government polices skew to bottom of the ladder people where hard working people paying their bills gets squat. I had 3 Canadian student loans and paid them off myself in the 10 year payment plan. I even was laid off long time ago and didnt even get one dime of unemployment insurance because I got off my ass and got a job a month later. I've been to the hospital once since I was born and only because the blood doctor I was asked to see worked out of a hospital not a strip mall clinic or medical building. I dont have kids, yet I pay taxes for schooling.

Out of all the taxes I've paid, I've got squat back. It would be great if I got a perk back for a job well done and being a tax contributor than a tax taker.

But government policies always skew to giving broke people a break while can-do people are expected to do it themselves even if it means scraping by. It sucks, but thats government.

 

[DeepBreath87]

The thing is, it's government youre dealing with. Their idea of making things go away is blanket laws that sweep things under the table, and catering to the lowest commo denominator (broke people) to give them a break.

You're not going to get government getting involved with millions of deadbeat renters with 20 year payback program loan guarantees.

I agree that government polices skew to bottom of the ladder people where hard working people paying their bills gets squat. I had 3 Canadian student loans and paid them off myself in the 10 year payment plan. I even was laid off long time ago and didnt even get one dime of unemployment insurance because I got off my ass and got a job a month later. I've been to the hospital once since I was born and only because the blood doctor I was asked to see worked out of a hospital not a strip mall clinic or medical building. I dont have kids, yet I pay taxes for schooling.

Out of all the taxes I've paid, I've got squat back. It would be great if I got a perk back for a job well done and being a tax contributor than a tax taker.

But government policies always skew to giving broke people a break while can-do people are expected to do it themselves even if it means scraping by. It sucks, but thats government.

I know the government is incompetent. But they run all the student loan programs. I feel like they could do this in a similar fashion. I just hate these kinds of solutions. Hard working people get pissed on enough these days. But I do understand what you’re saying. It’s just a sad state of affairs.

 

[zeorhymer]

Great so the "surplus" isn't going towards the massive debt CA has. So instead, it'll go to the squatters. Will Gav pay for interest on those backed rent? I doubt it. With the ridiculous eviction laws, it's hard enough to get rid of leeches. That's why the available rental pool is getting smaller and smaller and rents are higher and higher.

 

[Chaplain]