HomeMy WebLinkAbout01. Adopt Urgency Ord - Allow Residential Tenants to repay unpaid rent w-in 3 mos. after City term Local Emergency & Temp Moratorium on Commercial Evictionsl ri ikl[•
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UNPAIDSUBJECT: AN URGENCY ORDINANCE ALLOWING RESIDENTIAL TENANTS TO REPAY
RENTS WITHIN THREE MONTHS
LOCAL EMERGENCY; AND , TEMPORARY MORATORIUMON • OF
COMMERCIAL
That the City Council discuss and adopt:
•-r • 1 •r r
•'r • i i i ri;,
• • -
•-r A,A NO. 0-- AN UNCODIFIED URGENCY
ORDINANCE OF • OF OF DOWNEY PURSUANTTO
SECTIONSCALIFORNIA GOVERNMENT CODE SECTION 8634 AND DOWNEY CITY
CHARTER r 514 ENACTING A TEMPORARY• •
ON • DUE TO NONPAYMENT OF RENT FOR• ., TENANTS
RESULTING FROM• OF • DUE TO THE NOVEL•'t
• r AND SETTING FORTHCONSTITUTING
URGENCY
At the request of Mayor Blanca Pacheco and Council Member Alex Saab, this item is presented
to the City Council for discussion and action.
i
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Fallowing the Council's regular meeting, on March 27, 2020, the Governor issued Executive
Order N-37-20 (Exibit A) which placed a statewide moratorium on evictions of tenants renting
URGENCY ORDINANCE ALLOWING RESIDENTIAL TENANTS ADDITIONAL REPAYMENT PERIOD;
TEMPORARY MORATORIUM ON EVICTIONS OF COMMERCIAL TENANTS
APRIL 2, 2020
single family residences or dwelling units, subject to certain conditions. Since the statewide
moratorium applies to all residential tenants in the City of Downey, a City urgency ordinance is
no longer necessary. However, the Executive Order is silent as to the length of time a
residential renter has to repay unpaid rent. The Urgency Ordinance fills the gap left in the
Governor's Executive Order: residential renters will have up to three (3) months after the City
terminates the Local Emergency to repay any unpaid rents to the landlord and no late fees can
be charged to the tenant for rent that was delayed due to COVID-19.
COMMERCIAL RENTERS:
While Executive Order N-37-20 ordered a moratorium on residential renters, the Executive
Order is silent as to similar protections for tenants of commercial property who have suffered
mandatory business closures due to the State and County closure orders.
For the Council's consideration is an urgency ordinance that places a temporary moratorium on
evictions due to nonpayment of rent for commercial tenants under the following conditions:
(1) the tenant has suffered a "financial impact" from lost business income resulting
from: (i) being sick with COVID-19, or caring for a household or family member who is sick with
COVID-19; (ii) income reduction resulting from business closure, curtailment of business
operations or other economic or employer impacts of COVID-19; (iii) layoff or furlough of
employees of the business; (iv) compliance with a recommendation from a government health
authority to stay home, self -quarantine, or avoid congregating with others during the state of
emergency; (v) extraordinary out-of-pocket business or medical expenses; or (vi) child care
needs arising from school closures related to COVID-19; and
(2) the financial impact of lost business by the tenant was caused by the COVID-19
pandemic, and/or the business' compliance with the President of the United States' Declaration
of National Emergency, the Governor of the State of California's Declaration of State
Emergency, the City of Downey's Proclamation of Local Emergency, and/or compliance with
public health orders related to COVID-19 from local, county, state, or federal authorities.
(3) Commercial tenants must notify their landlord(s) in writing that they cannot pay
the rent due to a COVID-19-related financial impact and provide documentation within a week of
the notice corroborating that the tenant has suffered COVID-19-related financial impact and is
unable to pay the rent.
(4) Commercial tenants have up to three (3) months after the City terminates the
Local Emergency to repay any unpaid rents to the landlord and no late fees can be charged to
the tenant for rent that was delayed due to a COVID-19-related financial impact.
Quality of Life, Neighborhood & Infrastructure
K
IRGERCT=
TEMPORARY MORATORIUM ON EVICTIONS OF COMMERCIAL TENANTS
APRIL 2, 2020 1
FISCAL IMPACT
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ATTACHMENT
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A,eace, health, safety and welfare and is enacted pursuant to the City's police powers afforde(f'
I-
sy the California State Constitution and State law.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
ORDAIN AS FOLLOWS:
nis
SECTION 2. The City Council of the City of Downey hereby enacts this 1rgency
Ordinance as follows:
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Unless a landlord agrees to a longer repayment term, tenants of single family residences and
dwelling units shall have up to three (3) months after the City of Downey proclaims the
termination of the Local Emergency to repay any unpaid rent. A landlord may not charge or
collect a late fee for rent that is delayed for the reasons stated in paragraph 1 of Executive
Order N-37-20.
SECTION 3. The City Council finds and declares that this Urgency Ordinance is
required for the immediate preservation and protection of the public peace, health, safety and
welfare for the following reasons:
1 Renters who are unable to pay rent during the moratorium period pursuant to the
that they will be evicted once the City of Downey terminates the Local Emergency.
2. Evicting renters who are temporarily unable to pay rent due to a COVID-119-
related loss of income or expense poses an immediate threat to life, property, and the public
peace, health, or safety, in that, it would displace some of Downey's most vulnerable residents,
and likely increase homelessness and/or the risk of COVID-19 transmission. Therefore, it is
imperative that the City implement temporary strategies to keep people housed while they make
efforts to repay any unpaid rent.
SECTION 4. This Urgency Ordinance is adopted pursuant to Government Code
Section 8634 and Downey City Charter Sections 511 and 514, and shall become effective
immediately upon its adoption by a four -fifths (4/5th) vote of the City Council.
SECTION 5. This Urgency Ordinance shall be in effect until three (3) months following
termination of the Local Emergency by the City of Downey.
SECTION 6. The City Council finds and determines that the adoption of this
Urgency Ordinance is exempt from the California Environmental Quality Act (CEQA) under
State CEQA Guidelines Section 15060(c)(2), in that the adoption of this Urgency Ordinance
will not result in a direct or reasonably foreseeable indirect physical change in the
• and is further and independently exempt from the California •
Quality Act under State CEQA Guidelines Section 15061 (b)(3), in that it can be seen with
certainty there is no possibility the adoption of this Urgency Ordinance will have a significant
eTect • the environment.
SECTION 7. If any article, section, subsection, paragraph, sentence, clause or phrase
of this Urgency Ordinance is declared by a court of competent jurisdiction to be unconstitutional
• •, invalid, such decision shall not affect the validity • the remaining portions • this
Urgency Ordinance. The City Council declares that it would have adopted this Urgency
Ordinance, and each article, section, subsection, paragraph, sentence, clause, phrase or
portion thereof, irrespective of the fact that any one or more articles, sections, subsections,
paragraph, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
• 8. The City Clerk shall certify to the adoption of this Urgency Ordinance and
cause the same to be published in the manner prescribed by law.
-----------------------
Maria Alicia Duarte, CIVIC
City Clerk
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES) ss:
CITY OF DOWNEY
I HEREBY CERTIFY that the foregoing Urgency Ordinance No. 20- was
introduced and adopted at a Special Meeting of the City Council of the City of Downey held on
the 2nd day of April, 2020, by the following vote, to wit:
AYES: Council Members:
NOES: Council Member:
ABSENT: Council Member:
ABSTAIN: Council Member:
I FURTHER CERTIFY that a Summary of the foregoing Urgency Ordinance No. 20-
, was published in the Downey Patriot, a newspaper of general circulation in the City of
Downey, on 1 2020, (after adoption). It was also posted in the regular
posting places in the City of Downey on the same dates.
MARIA ALICIA DUARTE, CIVIC
City Clerk
WHEREAS on March 4, 2020, 1 proclaimed a State of Emergency to exist in
California as a result of the threat of COVID-1 9; and
WHEREAS in a short period of time, COVID-1 9 has rapidly spread
throughout California, necessitating stringent public health emergency orders as
well as guidance from federal, state, and local public health officials; and
WHEREAS on March 16, 2020, 1 issued Executive Order N-28-20, suspendirLS
state law limitations on local jurisdictions that impose restrictions on evictions;
and
WHEREAS on March 19, 2020, 1 issued Executive Order N-33-20, ordering all
04
WHEREAS many Californians are experiencing or will experience
a •.Ati#4-!4SM ff iAC*AM-- #5 w reSUlt Of !#,USiAeSS cltsures,-Ae. l*ss *f *#urs +A
their rent, and leaving them vulnerable to eviction; and
WHEREAS minimizing evictions during this period is critical to reducing the
spread of COVID-1 9 in vulnerable populations by allowing all residents to stay
home or at their place of residence in compliance with Executive Order N-33-20;
and
WHEREAS Chief Justice Tani Cantil-Sakauye issued advisory guidance on
least 60 days, and on March 23, 2020, suspended all jury trials for a period of 60
4ays, and extended by 60 days the time period for the holding of a civil trial;
and
WHEREAS on March 25, 2020 the Department of Business Oversight
;ecured support from national banks, state banks and credit unions for
�nmptrti-/ ieltys iA m*-ag*# �e,#*-.ymeAts#A*, fitrec4svre s#le&Ai QViCti*AS f*r
homeowners who have economic impacts from COVID-19 with the objective of
maximizing consistency and minimizing hurdles potentially faced by borrowers.
NOW, THEREFORE, 1, GAVIN NEWSOM, Governor of the State of Californi•
in accordance with the authority vested in me by the State Constitution and
t A 8567 and 8571, do hereby issue the following Order to become effective
irnmediate�y:
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1) The deadline specified in Code of Civil Procedure section 1167 shall be
extended for a period of 60 days for any tenant who is served, while
from a residence or dwelling unit for nonpayment of rent and who
watisfies all of the following requirements:
a. Prior to the date of this Order, the tenant paid rent due to the
landlord pursuant to an agreement.
b. The tenant notifies the landlord in writing before f he rent is due,
or within a reasonable period of time afterwards not to exceed 7
days, that the tenant needs to delay all or some payment of rent
because of an inability to pay the full amount due to reasons
related to COVID- 19, including but not limited to the following:
I tenant was unavailable to work because the tenant
was sick with a suspected or confirmed case of COVID-1 -1
or caring for a household or family member who was sick
with a suspected or confirmed case of COVID-1 9;
(ii) The tenant experiienced a lay-off, loss of hours, or other
income reduction resulting from COVID-1 9, f he state of
emergency, or related government response; or
(iii) The tenant needed to miss work to care for a child whose
school was closed in response to COVI D- 19.
c. The tenant retains verifiable documentation, such as termination
notices, payroll checks, pay stubs, bank statements, medical
bills, or signed letters or statements from an employer or
supervisor explaining the tenant's changed financial
circumstances, to support the tenant's assertion of an inability to
pay. This documentation may be provided to the landlord no
later than the time upon payment of back -due rent.
2) No writ may be enforced while this Order is in effect to evict a tenant
from a residence or dwelling unit for nonpayment of rent who satisfies
the requirements of subparagraphs (a)-(c) of paragraph 1.
3) The protections in paragraphs 1 and 2 shall be in effect through May
31,2020.
Nothing in this Order shall prevent a tenant who is able to pay all or some
of the rent due from paying that rent in a timely manner or relieve a tenant of
liability for unpaid rent.
Nothing in this Order shall in any way restrict state or local governmental
may compel an individual to remain physically present in a particular residential
property.
IT IS FURTHER ORDERED that this Order supersedes Executive Order N-28-20
to the extent that there, is any conflict with 1hat Order,
This Order is not intended to, and does not, create any rights or benefits,
substantive or procedural, enforceable at law or in equity, against the State of
California its o_Q de,,�artmenfs entities ofticers_QmRiQ,,-_,ee_s, or ant other
person.
I FURTHER DIRECT that • soon • '• possible, this proclamation •"
filed in the Office of the Secretary of State and that widespread publicity and
notice be given of this Order.
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ALEX PADILLA
AN UNCODIFIED URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
DOWNEY PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 8634 AND
DOWNEY CITY CHARTER SECTIONS 511 AND 514 ENACTING A TEMPORARY
MORATORIUM ON EVICTIONS DUE TO NONPAYMENT OF RENT FOR COMMERCIAL
TENANTS RESULTING FROM LOSS OF INCOME DUE TO THE NOVEL CORONAVIRUS
(COVID-19) AND SETTING FORTH THE FACTS CONSTITUTING SUCH URGENCY
WHEREAS, COVID-19 has spread globally to over 117 countries, infecting more than
179,000 persons and killing more than 7,000 individuals worldwide, and shows every indication
of spreading further before it is controlled; and,
WHEREAS, the World Health Organization (WHO) publicly characterized COVID-19 as
a pandemic; and,
WHEREAS, on March 4, 2020, the Governor of the State of California declared a State
of Emergency in response to the COVID-19; and,
WHEREAS, on March 4, 2020, the Health Officer of Los Angeles County determined
that there is an imminent and proximate threat to the public health from the introduction of
COVID-19 in Los Angeles County, and declared a Local Health Emergency, and the Los
Angeles County Board of Supervisors concurrently proclaimed the existence of a local
emergency for the County of Los Angeles; and,
WHEREAS, on March 12, 2020, the Governor of the State of California issued Executive
Order N-25-20 providing among other things, that local jurisdictions may determine that
promoting stability among commercial tenancies is also conducive to protecting the public
health and helping mitigate the economic impacts of COVID-19; and,
WHEREAS, on March 15, 2020, the Governor announced via press conference that he
was: (1) calling for home isolation for adults over the age of sixty-five and individuals with
chronic conditions; (2) directing the closure of bars, brewpubs, wineries, and nightclubs; and (3)
calling for restaurants to limit occupancy to half their current allowance and practice social
distancing; and,
WHEREAS, on March 13, 2020, the President of the United States declared a National
Emergency due to the continuing spread and the effects of COVID-19; and on March 16, 2020,
announced guidelines advising people to avoid gatherings of ten (10) or more persons for a
period of fifteen (15) days; and
WHEREAS, effective March 13, 2020 through at least May 5, 2020, all schools in the
Downey Unified School District are closed to prevent the spread of COVID-19; and,
WHEREAS, on March 16, 2020 (and expanded on March 19, 2020), Los Angeles
County Department of Public Health instituted the "Safer at Home" order to control the spread of
COVID= I9-which-among-other-things temporarily -prohibits -all events and-publiG-gatherings of
10 or more people, and the closure of non -essential businesses and areas;
WHEREAS, on March 18, 2020, the City Manager, acting as the Director of Emergency
Services for the City of Downey, proclaimed the existence of a Local Emergency due to the
SECTION 1. The above recitals are true and correct and are incorporated herein by
this reference as findings in support of the regulations contained in this Urgency Ordinance.
SECTION 2. The City Council of the City of Downey hereby enacts this Urgency
Ordinance placing a temporary moratorium on evictions of commercial tenants due to
nonpayment of rent as a result of COVID-19 as follows:
1. Prohibition on Evictions of Commercial Tenants.
During the term of this Urgency Ordinance, a commercial tenant shall not be evicted for
nonpayment of rent when the tenant can demonstrate that he, she or they have suffered one or
more financial impacts related to COVID-19.
The following words and phrases, whenever used in this Urgency Ordinance, shall be
construed as defined in this section:
"Financial Impacts" shall mean a commercial tenant lost business income resulting from:
(1) being sick with COVID-19, or caring for a household or family member who is sick with
COVID-19; (2) income reduction resulting from business closure, curtailment of business
operations or other economic or employer impacts of COVID-19; (3) layoff or furlough of
employees of the business; (4) compliance with a recommendation from a government health
authority to stay home, self -quarantine, or avoid congregating with others during the state of
emergency; (5) extraordinary out-of-pocket business or medical expenses; or (6) child care
needs arising from school closures related to COVID-19.
"Related to COVID-19" shall mean financial impacts that were caused by the COVID-19
pandemic, the President of the United States' Declaration of National Emergency, the Governor
of the State of California's Declaration of State Emergency, the City of Downey's Proclamation
of Local Emergency, and/or compliance with public health orders related to COVID-19 from
local, county, state, or federal authorities.
Commercial tenants who wish to avail themselves of the protections afforded by this Urgency
Ordinance must first notify their landlords in writing that they cannot pay rent due to a COVID-
19-related financial impact. Within one week of providing this written notice, tenants must
provide documentation to their landlord(s) corroborating that they have suffered a COVID-19-
related financial impact.
B�s� No Waiver of Rent.
This Urgency Ordinance imposes a moratorium on evictions of commercial tenants in the City of
Downey, including nonpayment eviction notices and unlawful detainer actions filed on or after
the effective date of this Urgency Ordinance.
This Urgency Ordinance is not, and should not be interpreted as a moratorium on the payment
of rent, or any forgiveness of the same. Tenants who avail themselves of the protections
afforded by this Urgency Ordinance shall remain responsible for the payment of rent.
Acceptance by the landlord of partial payment of rent from the tenant shall not constitute
payment in full of rent or a waiver of a landlord's right to collect the balance of the rent due.
Unless a landlord agrees to a longer repayment term, commercial tenants shall have up to three
(3) months after the City of Downey proclaims the termination of the Local Emergency to repay
any unpaid rent. A landlord may not charge or collect a late fee for rent that is delayed for the
reasons stated in this Urgency Ordinance.
V. Enforcement.
A landlord's
failure to comply
with this Urgency Ordinance shall render any notice
of
termination
of tenancy issued
during the term of this moratorium void. For notices
of
termination
issued during the
term of this moratorium, this Urgency Ordinance may
be
ORDINANCE NO.
PAGE 4
asserted as an affirmative defense in an unlawful detainer action. A landlord's failure to
comply with this Urgency Ordinance does not constitute a criminal offense.
SECTION 3. The City Council finds and declares that this Urgency Ordinance is
required for the immediate preservation and protection of the public peace, health, safety and
welfare for the following reasons:
a. Promotion of stability in commercial tenancies is important in the City of Downey,
given the number of small businesses in the community, and the need to preserve the existing
commercial core of businesses, as a foundation not only for the City to recover quickly from
losses of sales tax revenues expected to occur as a result of immediate shutdowns and
curtailment of business activities in compliance with local, state, and federal health orders, but
also for the ability to meet the need to attract new commercial tenants in the Downtown Downey
Specific Plan area and elsewhere; and to minimize the job losses that might occur from
displacement, relocation, or bankruptcies of businesses resulting from commercial evictions.
L. PP1® JllA (\ I- mUma National, State,
anolocal emergency i_ai ill result
in
nuCOVD 1 has L114 1 anI
substantial loss of income and expense for many commercial renters whose business activities
have been curtailed or stopped natural consequences of compliance with federal, state and
local -mandates -Tor "Safer at Home" orders 'any other si ii r VuviD-1 -response measures
enactedslow the infection rate, preserve the ability of medical and emergency response
providers to respond to the crises and ultimatelysave lives.
C. Evicting commercial renters who are temporarily unable to pay rent due to a
COVID-19 related loss of income or expense poses an immediate threat to life, property and the
public peace, health or safety, in that, it would displace Downey's most vulnerable businesses,
and likely increase homelessness and/or the risk of COVID-19 transmission. Therefore, it is
imperative that the City implement strategies to keep people and businesses housed.
SECTION 4. This Urgency Ordinance is adopted pursuant to Government Code
c....a:.. r. QG'2A ...J I"0........... l�:a.. /L....-6..r C'....a:...... 04 A .....1 C4 A ..J shall
become _�__a:.._
V ection VVJ_r and Downey City VI IQI IGI ♦'eCtio s 51 1 and J 11t, and shall beco a effte Calve
immediately upon its adoption by a four -fifths (4/5'h) vote of the City Council.
SECTION 5. The moratorium created by this Urgency Ordinance shall be in effect until
May 31, 2020, unless extended by action of the City Council. If the term of the moratorium is not
extended, then it shall automatically expire at 11:59 p.m. on its last day without further action of
the City Council.
If the City Council proclaims the termination of the Local Emergency based on COVID-19, the
moratorium shall automatically cease to be in effect without further action of the City Council,
except that the three (3) month repayment period in Section 2 shall survive termination of this
moratorium.
SECTION 6. The City Council finds and determines that the adoption of this
Urgency Ordinance is exempt from the California Environmental Quality Act (CEQA) under
State CEQA Guidelines Section 15060(c)(2), in that the adoption of this Urgency Ordinance
will not result in a direct or reasonably foreseeable indirect physical change in the
environment, and is further and independently exempt from the California Environmental
Quality Act under State CEQA Guidelines Section 15061(b)(3), in that it can be seen with
i=1 •
certainty there is no possibility the adoption of this Urgency Ordinance will have a significant
effect on the environment.
SECTION 7. If any article, section, subsection, paragraph, sentence, clause or phrase
of this Urgency Ordinance is declared by a court of competent jurisdiction to be unconstitutional
or otherwise invalid, such decision shall not affect the validity of the remaining portions of this
Urgency Ordinance. The City Council declares that it would have adopted this Urgency
Ordinance, and each article, section, subsection, paragraph, sentence, clause, phrase or
portion thereof, irrespective of the fact that any one or more articles, sections, subsections,
paragraph, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
SECTION 8. The City Clerk shall certify to the adoption of this Urgency Ordinance and
cause the same to be published in the manner prescribed by law.
APPROVED AND ADOPTED this 2"d day of April, 2020,
Blanca Pacheco, Mayor
ATTEST:
Maria Alicia Duarte, CMC
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) ss:
CITY OF DOWNEY )
I HEREBY CERTIFY that the foregoing Urgency Ordinance No. 20- was
introduced and adopted at a Special Meeting of the City Council of the City of Downey held on
the 2nd day of April, 2020, by the following vote, to wit:
AYES:
Council Members:
NOES:
Council Member:
ABSENT:
Council Member:
ABSTAIN,
Council Member:
I FURTHER CERTIFY that a Summary of the foregoing Urgency Ordinance No. 20-
1 was published in the Downey Patriot, a newspaper of general circulation in the City of
Downey, on , 2020, (after adoption). It was also posted in the regular
posting places in the City of Downey on the same dates.
MARIA ALICIA DUARTE, CMC
City Clerk