HomeMy WebLinkAbout16. Ext Urgency Ord Establish Temp Moratorium on Evictions of Residential Tenants & Rent Repay Period114a11■k,[•a
APPROVED
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCQITY MANAGER
• OFFICE OF -
Gilbert•
• r • - 40111IN =1 rj;1 10 1111 XC1441910
r r r
. • 11 N F4 7kF0T-,Vt • \i
regularAt its - s of - 23, 2020, the City Council••• • Urgency i •20-
1445
to establish •rrary moratorium on • of r- and
establish- provisions •r rent repaymentperiod which would give residential
month repayment period for each month the tenant is in arrears in rent to the landlord. Urgency
Ordinance No. 1445 was extended on July 28, 2020 to expire 12 midnight on September 30,
2020.
Effective September2020, Governor Newsom• • into law AssemblyC ' 1::
tenants,among other things, provides statewide conformity to the eviction protections for residential
• • mobile home tenants, unable to pay rent• _ during the period
12021• - to a COVID-19-related financial hardship. Below is a brief
Starting September 1, 2020, residential tenants must comply with the following requirements •
•' protected from •:'
(i) For Rent owed between March 1 2020 and August 31, _2020: A landlord can
now give a tenant notice to pay rent or quit. However, if, within 15 days of the notice the tenant
signs and returns the declaration under penalty of perjury of a COVID-19-related financial
time period. Higher income tenants (over $100K household income or over 130% of median
household income, whichever is higher) must provide supporting documentation to support their
declaration of COVID-19-related financial hardship upon request by the landlord. Once the
tenant meets this requirement, the tenant cannot be evicted for nonpayment of rent for the
period March 1, 2020-August 31, 2020.
1 21194 ft , I 16-AIII
Higher income tenants (over $100K household income or over 130% of median
household income, whichever is higher) must provide supporting documentation to support their
ieclaration of COVID-19-related financial hardship upon request by the landlord.
Based •n AB 3088s eviction protections described above, AB 3088 prohibits the further
extension of the City's moratorium on residential tenant evictions. The City's moratorium on
residential tenant evictions will expire on SepLember 30, 20206
The landlord is required to provide a hardship declaration to the tenant with any notice to pay
rent or quit. That hardship declaration must be in the same language as the language of the
rental agreement. Landlords must inform tenants of their rights under AB 3088. Failure of the
landlord to provide the required notice and declaration to the tenant may result in the dismissal
of any subsequent eviction proceeding.
Also, landlords are prohibited from taking action against a tenant or modifying existing rental
agreements in retaliation for nonpayment of rent due to COVID-19 hardships. There are strict
penalties for landlords who take action to evict a tenant such as locking tenants out, removing
property or shutting off utilities.
Beginning October 5, 2020, landlords may initiate eviction proceedings for reasons other than
nonpayment of rent for COVID-1 9-related hardship, such as unpaid rent due pre -March 1, 2020,
creating a nuisance on the premises, causing damage to the rental property, violating other
terms of the rental agreement unrelated to rent payments. Tenants must continue to comply
with other terms • the rental agreement in order to avoid eviction.
September 22.2O2O
Page
Starting March 1, 2021, landlords are permitted to recover unpaid rent for the period March 1,
2020-January 31, 2021 in small claims court. AB 3088 expands the jurisdiction of the small
claims court to allow landlords to file small claims actions to collect unpaid rent, regardless of
the amount, until February 1, 2025.
The City's existing ordinance provides that when the Urgency Ordinance expires on September
30, 2020, tenants must begin to repay unpaid rent starting October 1. The ordinance gives
tenants 2 months repayment period for every month that a tenant does not pay rent during the
period April 1, 2020 — September 30, 2020, subject to certain requirements. For example, if a
tenant did not pay rent for the 3 months during the period April 1, 2020-September 30, 2020, the
tenant would have 6 months to repay rent to the landlord. If a tenant did not pay rent for the 6-
month period of April 1, 2020-September 30, 2020, then the tenant would have 12 months to
repay the rent to the landlord.
The City may preserve its existing Rent Repayment Ordinance as another option for tenants
who wish to avoid a small claims court action if it amends the existing ordinance to make the
following findings pursuant to AB 3088: 1) the City's repayment period is more protective than
AB 3088; and 2) the repayment period begins on or before March 1, 2021 and ends on or
before March 31, 2022. The City's ordinance may be presented to the small claims court as a
defense to any collection action taking place during the repayment period under the City's
The proposed urgency ordinance making such findings is attached to this report for the
Council's adoption. To adopt the proposed urgency ordinance, 4/5 vote of the Council is
AB 3088 provides certain mortgage protections to homeowners and rental property owners.
Additional information can be found at:
September 22, 2020
Page 4
Additional Information regarding the provisions of AB 3088 is posted on the City's COVID-V3"
webpage.
Fil-gull. M.
1. The residential tenant eviction protections of AB 3088 will apply in the City of Downe',
The City's moratorium on residential tenant evictions cannot be further extended ar
shall expire oSeptembe30, 2020.
2. Starting with the September 1, 2020 rent, tenants should follow the requirements f(
eviction protection set forth in AB 3088, including the submission of hardsK
declarations and the partial payment of rent.
3. Starting February 1, 2021, landlords may initiate eviction proceedings against tenani
who failed to pay 25% of their rent for the period September 1, 2020-January 31, 202 ,
Landlords may also initiate eviction proceedings for unpaid rents occurring on or aft(
February 1, 2021.
4. Starting March 1, 2021, landlords are permitted to recover from tenants unpaid rent f(
the period March 1, 2020-January 31, 2021 by initiating an action in small claims court.
5. Another option for tenants is to follow the City's rent repayment ordinance for rent ni
paid during the period April 1, 2020-September 30, 2020. The repayment period star
October 1, 2020. Tenants must still pay 25% of the rent due for each month the tenai
is unable to pay rent for the period September 1, 2020 through January 31, 2021
order to be protected from eviction.
FISCAL IMPACT
RITWZYMBSTIM115111761M
ATTACHMENTS
INTITITMATMMMIRM
qnmrm-
ORDINANCE NO. 20-
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
ORDAIN AS FOLLOWS:
A. With the rising number of infections and deaths in Los Angeles County due to the
COVID-19 pandemic, Governor Newsom on July 13, 2020 ordered 30 counties in the State,
including Los Angeles County, to close indoor activities at fitness centers, places of worship,
offices for non -critical sectors, personal care services, such as hair salons and barbershops,
and indoor malls; and all 58 counties in the State to close indoor operations at restaurants,
wineries, tasting rooms, movie theaters, family entertainment centers, museums, zoos and card
rooms, and ordered all, bars shuttered across the state.
B. Consistent with the Governor's announcement, on July 14, 2020, Los Angeles
County Department of Public Health announced that the "Safer at Work and the Community for
Control of COVID-19" reopening would require closure of the indoor activities of Los Angeles
County businesses in the Governor's order, with a slow reopening of certain businesses.
C. Los Angeles County Department of Public Health continues to order that County
residents remain in their residences as much as practicable; to limit close contact with others
and limit social gatherings outside their household; to continue to practice Social (Physical)
Distancing, at all times while out in public; and to wear a cloth face covering over both the
nose and mouth when in or likely to be in contact with others, to lower the risks of person -
to -person contact for themselves and others.
D. While most businesses are closed for inddor activities, the Los Angeles County
Department of Public Health has slowly relaxed its order for certain business operations,
residential tenants will continue to struggle find work or return to work and pay rent.
E. On June 23, 2020, the City Council adopted Urgency Ordinance No. 20-1445
establishing a local eviction moratorium for residential renters who were unable to pay rent due
to a COVID-19-related financial hardship and establishing a repayment period giving renters two
months for every month of unpaid rent (i.e., a tenant who failed to pay rent for 3 months shall
have 6 months to repay rent to the landlord starting on the expiration date of Urgency Ordinance
No. 20-1445).
F. Effective September 1, 2020, the Governor signed into law AB 3088 which
provides certain eviction protections to residential renters who were unable to make rent
payments due to COVI D-1 9-related financial hardships for the period March 1, 2020-January
31, 2021, subject to certain conditions, and prohibits the further extension of local residential
ATTACHMENT A
eviction moratoria. As a result, AB 3088 prohibits further extension of the City's residential
tenant eviction moratorium which will expire on September 30, 2020.
1
G. Starting March 1, 2021, AB 3088 also allows a landlord to initiate an action in
small claims court against a residential renter to collect the amount of rent that remains unpaid
for the period March 1, 2020-January 31, 2021 which does not allow sufficient time for a tenant
to repay unpaid rent and avoid legal action.
H. The City Council wishes to preserve the repayment provisions first enacted
pursuant to Urgency Ordinance 20-1445 by providing tenants with additional time to repay
unpaid rent and avoid legal action.
I. By this Urgency Ordinance, the City Council adopts findings that its repayment
provisions are more protective than AB 3088 and are consistent with AB 3088's requirement
that any provision that allows a tenant a specified period of time in which to repay COVID-19
rental debt shall begin by or before March 1, 2021 and end on or before March 31, 2022. The
City's repayment period begins October 1, 2020 and en6 September 30, 2021 or sooner
depending on the number of months a tenant is in arrears.
J. In accordance with California Government Code Section 8634 and Downey
City Charter Sections 511 and 514 and based on the findings set forth herein and the recitals
set forth in Urgency Ordinance No. 20-1445, the City Council finds that this Urgency Ordinance
is necessary to immediately preserve and protect the public peace, health, safety and welfare
and is enacted pursuant to the City's police powers afforded by the California State Constitution
and State law.
SECTION 2. Section IV of Urgency Ordinance No. 20-1445 is amended to add
Subsection F. to read as follows:
-7. It is the intent of the City Council to preserve the repayment provisions of this
Section IV following its expiration which are more protective than AB 3088 and which are
consistent with AB 3088's requirement that any provision that allows a tenant a specified period
of time in which to repay COVID-19-related rental debt shall begin by or before March 1, 2021
and end on or before March 31, 2022. For unpaid rent due to financial impacts related to
COVID-19 accrued between April 1, 2020-September 30, 2020, the City's repayment period
shall begin October 1, 2020 and end September 30, 2021 or sooner depending on the number
of months of unpaid rent."
The City Council finds and declares that this Urgency Ordinance is necessary for the immediate
preservation and protection of the public peace, health, safety and welfare for the following
reasons:
A. Starting March 1, 2021, AB 3088 also allows a landlord to initiate an action in
small claims court against a residential renter to collect the amount of rent that remains unpaid
for the period March 1, 2020-January 31, 2021.
B. The City Council wishes to preserve the repayment provisions first enacted
pursuant to Urgency Ordinance 20-1445 by providing tenants with additional time to repay
unpaid rent and avoid legal action.
C. Providing residential renters with additional time to repay unpaid rent due to a
COVI D-1 9-related loss of income or expense will allow tenants to avoid legal action which could
make worse a tenant's financial situation and credit worthiness and prevent a tenant from
achieving financial recovery during Local Emergency. Therefore, it is imperative that the City
preserve temporary repayment strategies to allow tenants to repay any unpaid rent.
D. By this Urgency Ordinance, the City Council makes findings that the repayment
provisions of Ordinance No. 20-1445 which are consistent with AB 3088's requirement that any
provision that allows a tenant a specified period of time in which to repay COVID-19-related
rental debt shall begin by or before March 1, 2021 and end on or before March 31, 2022.
SECTION 4. 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
certainty there is no possibility the adoption of this Urgency Ordinance will have a significant
effect on the environment.
SECTION 5. 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 6. Urgency Ordinance No. 20-1445 remains in effect and expires as set forth
in Urgency Ordinance No. 20-1449, except that the repayment period set forth in Paragraph IV
shall survive expiration of Urgency Ordinance No. 20-1445.
SECTION 7. 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 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 22nd day of September, 2020.
Blanca Pacheco, Mayor
ATTEST
PAGE 4
Maria Alicia Duarte, Eft
City Clerk
AWN I I NW* I = I Lei
Lei I WK61 = 9 161TY1 641
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 17 2020, (after adoption). It was also posted in the regular
posting places in the City of Downey on the same dates.,
MARIA a DUARTE, CIVIC
City Clerk