Los Angeles (AP) Rent forgiveness for renters in California is now the highest in the nation, the largest state for renters and the only one that has eliminated the ability to default on your mortgage.
It’s the second straight year that California has seen rent drop below $1,000 a month, after last year when the average price fell to $1.02.
Rent forgiveness is a key part of California’s mortgage reform law, which went into effect last year.
It lets renters who make under $100,000 qualify for a 10-year fixed rate mortgage with the federal government, which helps pay for the mortgage.
The state allows the forgiveness to be reduced by 30 percent after 30 years.
Rents for California renters rose 3.4 percent to $2,063 a month last year, according to the Real Estate Board of Greater Los Angeles.
That’s the biggest year-over-year increase since 2013.
Rent increases across the nation have slowed, though the state’s housing market remains relatively healthy.
The California state government says it is working to extend the forgiveness by 30 years and expects to get a better deal by 2021.
That means homeowners who are already in the process of getting the loan and can afford it will get an additional 30 years of the mortgage as well.
California also has been working to help renters pay their mortgage, with the state recently extending its homeownership deferment program for up to five years.