Judicial Council ends bans on foreclosures and evictions as of Sept 1

California lawmakers find themselves with just over two weeks to act after the Judicial Council announced Thursday it would phase out temporary rules blocking evictions and foreclosures, effective Sept. 1.

The temporary rules were put in place in April after Gov. Gavin Newsom declared a state of emergency due to the COVID-19 pandemic and shut down of much of the state's economic activity. California Chief Justice Tani Cantil-Sakauye then spent months urging lawmakers to pass their own policies, something they have so far failed to do.

"The duty of the judicial branch is to resolve disputes under the law and not to legislate," she said in a statement issued Tuesday and repeated in Thursday's press release. "I urge our sister branches to act expeditiously to resolve this looming crisis."

Emergency Rules 1 and 2 prevented courts from hearing unlawful detainer and foreclosure cases, respectively. Cantil-Sakauye delayed a vote set for June on rescinding the policies, but announced on Tuesday she would hold a vote among council members this week.

They voted 19-1 to rescind the policy.

Lawmakers have proposed several bills to address the crisis. But legislating a solution is more difficult than temporarily suspending some court proceedings, especially because the state's budget has also been devastated by the business shutdown.

This issue was on full display Wednesday, when members of the Assembly Judiciary Committee reluctantly passed SB 1410. The complex bill attempts to use tax credits to encourage landlords to sign agreements that allow tenants to stay in place and repay rent over time.

When asked why the state doesn't simply provide direct aid, bill author Sen. Anna Caballero, D-Salinas, replied, "We don't have the money."

Another active bill is AB 1436, which was heavily amended on Monday. The revised version would place requirements on a three-day notice to pay or quit that allow tenants who can show "COVID-19 related financial distress" to stay in their rented homes without paying. It would also permit mortgage payment forbearance for property owners who could show they were prevented from making payments due to the pandemic.

Both policies would expire 90 days after the end of the state or emergency or April 1, 2021, whichever is earlier. AB 1436 is scheduled to be taken up in the Senate Judiciary Committee on Tuesday. The Legislative year ends Aug. 31.

-- Malcolm Maclachlan