Tenant Stopped Paying Rent... Now What?

[Matthew Lee]

Hi everyone, could use your input and help!

I have been house hacking a duplex in Oakland the last year. Tenants moved in January 2022. First few months were fine, but some issues started coming up. They're on a subsidy program, like Section 8, that pays a portion of their rent ($2k of $2700). The tenant stopped paying their share in August. Since then, it's been a nightmare scenario. 

The total balance for unpaid rent portion is up to $4800. The lease ends January 31st, but the tenant has already said that they will stay past that date. Since the lease is ending, it will automatically go month to month. 

The last few months have been an endless chase of the subsidy program (Hamilton Families) and the tenants. My only contact for the program has been the lady in charge of placing the tenant, but she just refers me back to the finance person. All my calls, emails, texts to their finance team have been ignored. Any attempts to find someone else in the company end with a voicemail or email that never gets returned. Eventually, somebody from the San Francisco Cal Works program reached out and said that they will pay the outstanding tenant charges. They will discontinue support after February though. So, even if I get the $4800 back, there's still a possibility that the tenant stays and stops paying their rent, with no subsidy coming in to cover.

My Property Manager hasn't been helpful during this process. At this point, they're recommending that I offer to PAY $2k-$4k to the tenant to get them to leave.  Obviously this is a situation I would like to avoid...
Unfortunately, it seems like this is pretty typical for California / Oakland, and I know there are countless moratorium / laws that help protect the tenant in this situation.

I'm overwhelmed and not sure what options I have left. Has anyone else successfully navigated situations like this in California? Any advice or recommendations are welcome.