During the COVID-19 pandemic, California implemented some of the most extensive eviction moratoriums in the country. While intended to protect tenants facing legitimate financial hardship, these policies placed a significant financial burden on rental housing providers, many of whom were forced to cover mortgage payments, property taxes, and operating costs without rental income.
Although the state eventually implemented the COVID-19 Rent Relief Program, many housing providers received only partial aid or none at all, leaving them to shoulder substantial losses.
Recognizing these harms, the California Rental Housing Association (CalRHA) filed a lawsuit against the State of California under the Fifth Amendment's “takings” clause, arguing that the moratorium constituted an unlawful seizure of private property without compensation. Unfortunately, the federal court dismissed the case as moot after the state’s moratorium was lifted—without addressing the core constitutional claim.
Now, a new development at the federal level could reopen the conversation:
While this case pertains to the federal eviction ban, it could be a powerful precedent for claims related to California’s pandemic-era restrictions, which went even further.
Read news story: https://www.reuters.com/legal/government/us-must-face-claims-over-pandemic-ban-residential-evictions-2025-06-06/
