CHICO, Calif. - Gov. Gavin Newsom extended the coronavirus rent protection for another month.
David Halimi owns Diamond W Western Wear in downtown Chico. He also owns and leases out duplexes to people. Halimi said he thinks this extension is setting people up for failure.
"I understand that we're all in it all together, but I think inherently, there is something wrong where one group was helped at the expense of others," said Halimi.
Right now, landlords can't evict renters under Gov. Newsom's coronavirus mandate.
"Landlord expenses keep going on, they still have to make their mortgage, they still have to pay their taxes insurance, maintenance, all of that, its sort of a waiting game," said Halimi. "Most of my tenants stop paying rent because most of them can't, some because they took the opportunity....because they know they can't be evicted."
To help buy time for renters once the no eviction mandate is lifted - proceedings are suspended for 90 days.
"Since we just reopened I haven't had that income again," said a renter in Chico, Daniel Putnam. "So just these couples weeks will help me have that income again."
Halimi said Newsom's no eviction mandate will hurt people in the long run.
"The governor's order is really truly a bandaid that isn't going to heal the wound because once the moratorium is over, those rents are not forgiven," said Halimi. "There's still collectible and people are still unable to unpay and in a way, people are set up to be unable to pay and it's unpleasant."
Halimi told Action News Now he thinks long-term consequences for investors and builders may happen in the future.
The order includes the department of housing and community development to waive certain regulations governing the administration of emergency services grant funding received under the cares act.