Welcome to the 68th issue of the California Coronavirus Weekly Recap newsletter. Before we get started with this week’s news, we want to let you know Gov. Gavin Newsom signed AB 832 into law Monday night which, among other things, allocates additional federal rent relief dollars to the state rental assistance program for housing providers with qualified tenants.
While C.A.R. recognizes that federal law restricts the state’s use of federal funds to assist only tenants who earn up to 80% of area median income, C.A.R. believes that, given the extended moratorium, housing providers who have tenants who earn above that federal cap who are experiencing pandemic related hardships and are unable to pay their rent should receive rental assistance. C.A.R. has expressed these concerns to the Legislature and is continuing to work to see if state funds can be allocated for such assistance.
Additionally, the CDC has extended the eviction moratorium for one final month through July 31, 2021.
To protect homeowners with federally backed mortgages against foreclosure, the Administration is extending the foreclosure moratorium until July 31.
Homeowners impacted by the pandemic with mortgages backed by HUD, VA, USDA, Fannie Mae, and Freddie Mac, as well as housing providers with Fannie Mae or Freddie Mac multifamily mortgages, may apply for forbearance until September 30, 2021.
In This Issue:
- The Economy & Your Finances: U.S. economy grew by 6.4% in Q1
- The Market & Industry: Governor signs bill to pay housing providers COVID-19 back rent in full
- Around the State: California COVID rate rising
- Health Check-Up: Almost all COVID deaths now in unvaccinated people
The Economy & Your Finances: U.S. economy grew by 6.4% in Q1The U.S. economy grew by 6.4 percent in Q1 of 2021. Economists believe that economic growth has continued to accelerate in the current quarter, which ends this month, as vaccinations become widespread.
Last week, U.S. weekly jobless claims fell by only 7,000 to 411,000. In California, claims fell by 3,300 to 64,700 — which is 44 percent higher than healthy levels for a healthy job market. From May 2020 through May 2021 California had recovered only 51.8 percent, or 1.3 million, of the jobs lost between March and April 2020.
Beginning July 11, the California Employment Development Department (EDD) will require all unemployment recipients to certify they are actively applying for jobs. Different work search requirements apply for claimants receiving PUA benefits (most eligible REALTORS®) vs. traditional UI benefits. The EDD will be sending notices in the coming weeks informing claimants of the requirement and what they need to do. C.A.R. has updated its PUA FAQ with information about how this requirement will affect REALTORS® receiving PUA benefits. Since the pandemic began, California has processed more than 20 million unemployment claims and paid out more than $128 billion in benefits.”
Sources: The Associated Press, Market Watch, The Mercury News, CBS San Francisco
The Market & Industry: Governor signs bill to pay housing providers COVID-19 back rent in full
Late Monday, Gov. Newsom signed a bill that pays housing providers COVID-19 back rent in full and gives the state more time to distribute a larger amount of pandemic-related rent relief. Under this legislation, landlords will be unable to evict tenants over non-payment of rent through Sept. 30. To file an eviction lawsuit after that, the landlord must provide evidence to the court they applied for rental assistance. Landlords would also be able to apply for 100% of back and forward rent. More than 7 million renters are still behind on rent.
Last Thursday, the Biden administration renewed the national foreclosure moratorium one last time through the end of July. As the foreclosure bans draw to an end, the federal government is turning its focus to reducing payments for borrowers.
The California market is seeing a gradual slowdown in demand due in part to rising interest rates and high competition. As tight supply remains an issue and home prices continue to surge, many would-be buyers continue to face affordability challenges that are difficult to overcome.
Sources: NPR, SF Gate, Zillow, HousingWire, C.A.R
Around the State: California COVID rate rising
For the first time since December 2020, California’s seven-day COVID-19 positivity rate is on the rise. While the increase is small, experts are concerned about the increasing prevalence of the highly contagious Delta variant — it’s now the third most common variant in California, making up 14.5 percent of the state’s cases.
California is now averaging fewer than 100,000 vaccinations each day. California is averaging 91,783 daily shots as of Thursday, a 26 percent decline from the previous week. The state has so far administered nearly 41 million vaccine shots and has 5.5 million doses on hand. California has now passed President Biden’s national target goal of vaccinating 70 percent of residents by July 4 with 73.2 percent of the state’s population having received at least one vaccination dose; nationwide, only 65.5 percent of the population have received at least their first injection.
Sources: Deadline, Los Angeles Times, The Mercury News
Health Check-Up: Almost all COVID deaths now in unvaccinated people
Nearly all COVID-19 deaths in the United States are in people who haven’t been vaccinated. And breakthrough infections in fully vaccinated people account for just 0.1 percent of hospitalizations.
Scientists from the National Institutes of Health revealed that for every coronavirus infection during the spring and summer of 2020, nearly five more cases went undetected. This amounts to nearly 17 million additional cases by July 2020.
For the roughly 10 million Americans with weakened immune systems, the pandemic isn’t over. Researchers aren’t yet sure what an adequate level of protection looks like for this group.
Sources: Los Angeles Times, USA Today