(The Center Square) – Attorney General Rob Bonta announced that he has secured $625,000 in restitution for Californians whose rental applications have been denied due to rental debt accrued during the COVID-19 pandemic.
Complaints filed against tenant screening company, RealPage, and property developer and manager Holland, allege that the defendants violated California’s Covid-19 Tenant Relief Act by flagging rental debt accrued during the pandemic as a negative factor and denying applications because of it.
In response to the pandemic, the state enacted a series of emergency bills designated as the Covid-19 Tenant Relief Act in an attempt to stabilize the housing market. A part of this act prohibited any housing provider, tenant screening company or any other entity that evaluates tenants on behalf of a housing provider from using COVID-19 rental debt as a negative factor when determining if a tenant applicant is eligible.
It was found that RealPage violated this act when screening over 2,500 tenant applications in California, many of which were for Holland. Both companies have denied any violations, but are required to follow settlement agreements established by the Department of Justice.
In addition to paying the $625,000 which will be dispersed to the tenant applicants affected, RealPage is required to regularly confirm from their sources of credit and rental history data and their own internal system that there are filters in place that filter out any Covid-19 rental debt.
The DOJ has ordered that Holland to notify their screening company if the report includes Covid-19 rental debt and provide a report to the Attorney General every six months that certifies the compliance with the DOJ decision and the number of applicant contacts the defendant received, the number of those that had incorrect reports or reports containing prohibited information.
Additionally, for the next three years, Holland must preserve all of the documents that demonstrate compliance with the judgment including all applicant contacts, communications with rental applicants and evidence of incorrect information and the correction of that information.
“As California navigates an unprecedented housing crisis, it’s critical that those most at risk of losing their homes are afforded the rental protections they deserve,” reads a statement from Bonta. “COVID-19 rental debt cannot be used against tenants when they apply for housing. Our settlements against RealPage and Holland underscore the responsibility that screening agencies and landlords hold in making sure they fully comply with California law. As the People’s Attorney, I am committed to using the full force of my office to ensure more Californians have access to safe and secure housing.”
This is not the first time Bonta has alleged companies of violating the act. In February, Bonta reached a settlement with two Bakersfield landlords and Clemmer & Company, their property management company, for violating the Tenant Protection Act in addition to the Fair Employment and Housing Act.
And, in January, a settlement was reached with Invitation Homes for violations of both the Tenant Protection Act and California’s anti-price gouging law which affected almost 2,000 households.
There is also another lawsuit filed by Bonta and the DOJ against RealPage that alleges the company “enabled landlords to artificially raise rents by participating in a pricing alignment scheme that increased prices in the rental housing industry.”
The restitution in this settlement will be dispersed by a third party chosen by Bonta.
