HomeMy WebLinkAbout2020-09-15; City Council; ; Update on the City’s Commercial Eviction Moratorium and Recent Residential Eviction Relief DevelopmentsMeeting Date:
To:
From:
Staff Contact:
Sept. 15, 2020
Mayor and City Council
Scott Chadwick, City Manager
Celia Brewer, City Attorney
David Graham, Chief Innovation Officer
david.graham@carlsbadca.gov, 760-434-5992
Cindie McMahon, Assistant City Attorney
cindie.mcmahon@carlsbadca.gov, 760-434-2891
Subject: Update on the City’s Commercial Eviction Moratorium and Recent
Residential Eviction Relief Developments
Recommended Action
Receive an update on the city’s commercial eviction moratorium and recent residential eviction
relief developments.
Executive Summary
On April 7, 2020, the city adopted a resolution temporarily suspending evictions of commercial
tenants located in Carlsbad for nonpayment of rent due to COVID-19 related decreases in
business income. The moratorium remains in effect “until the local emergency is terminated, or
the withdrawal of Governor Newsom’s Executive Order N-28-20, whichever occurs sooner.”
Meanwhile, the City Council formed the Ad Hoc City Council Economic Revitalization
Subcommittee and approved the Economic Recovery and Revitalization Initiative. The City
Council allocated $5 million to fund the initiative’s programs, which include $4.4 million for a
small business loan program and $50,000 for landlord tenant mediation and renegotiation
services.
During its most recent legislative session, the state legislature considered, but did not pass,
statewide commercial eviction relief. However, on Sept. 1, 2020, the state enacted urgency
legislation providing statewide residential eviction relief. On Sept. 4, 2020, the federal Centers
for Disease Control and Prevention issued an order providing nationwide residential eviction
relief.
Discussion
City’s temporary suspension of commercial evictions
On March 16, 2020, Governor Newsom issued an executive order (N-28-20) that authorized
local governments to impose limits on residential or commercial evictions if:
CA Review CKM
Sept. 15, 2020 Item #8 Page 1 of 71
• The basis of the eviction is either nonpayment of rent or a foreclosure
• The nonpayment of rent or foreclosure resulted from a substantial decrease in
household or business income, or substantial out-of-pocket medical expenses
• The decrease in income or the out-of-pocket medical expenses are documented and
were caused either by the COVID-19 pandemic or a government response to the
pandemic
Relying on the executive order’s authorization, on April 7, 2020, the City Council adopt a
resolution temporarily suspending evictions of commercial tenants in Carlsbad for nonpayment
of rent due to COVID-19 related decreases in business income (Exhibit 1). For the temporary
suspension to apply, the commercial tenant must:
• Have been current on rent prior to the governor’s proclamation of emergency on
March 4, 2020
• Notify the landlord before or within 10 days after the rent due date of the commercial
tenant’s need to delay all or some of the rent payment because of an inability to pay for
COVID-19 pandemic-related reasons
• Provide the landlord with documentation verifying the reasons for the commercial
tenant’s inability to pay
The temporary suspension does not relieve a commercial tenant of the obligation to pay
whatever rent amount the commercial tenant is able to pay. The temporary suspension also
does not relieve the commercial tenant of liability for unpaid rent or applicable late fees, which
the landlord may demand and the commercial tenant must pay within three months of the
expiration of the local emergency, unless the landlord and the commercial tenant agree to an
alternative payment arrangement. If a commercial tenant vacates the leased premises during
the temporary suspension, all rent due is owed at that time.
Other San Diego County cities also relied on the executive order’s authorization to impose
residential and commercial eviction moratoriums. A description and current status of these
moratoriums is contained in Exhibit 2.
The day before the City Council adopted the city’s commercial eviction moratorium, the Judicial
Council of California adopted an emergency rule that effectively halted all evictions statewide.
The rule expired on Sept. 1, 2020.
The city’s commercial eviction moratorium remains in effect “until the local emergency is
terminated, or the withdrawal of Governor Newsom’s Executive Order N-28-20, whichever
occurs sooner.” The executive order’s authorization was originally set to expire on May 31,
2020, but the governor twice extended it and the authorization is currently set to expire
September 30, 2020.
During the recent legislative session, the state legislature considered Senate Bill No. 939,
urgency legislation that would have provided statewide commercial eviction relief. The bill was
held in committee on June 18, 2020, and never progressed further.
Sept. 15, 2020 Item #8 Page 2 of 71
If the governor’s authorization expires, the City Council may be able to use its own emergency
police power to impose a similar commercial eviction moratorium. If the City Council opted to
do this, the moratorium must not conflict with any federal or state law applicable to charter
cities. Additionally, the record of the City Council’s decision must demonstrate the
moratorium: (1) is substantially related to a public health or public safety purpose; (2) is not
arbitrary and does not go beyond what is necessary to accomplish the public health or public
safety purpose; and (3) does not plainly invade any constitutional rights. The Centers for
Disease Control and Prevention order in Exhibit 4, which pertains to residential evictions and is
discussed in more detail below, provides an example of the types findings and evidence
necessary to support a moratorium.
Business-related landlord and tenant communication
Since the city’s commercial eviction moratorium went into effect, the city staff member
designated as the point of contact for questions about the moratorium has received twelve
email inquiries and five to seven calls. Both landlords and tenants have contacted the city about
lease and rental agreement issues. City staff have been providing them with education about
the moratorium and, when appropriate, referring them to a community mediation program run
by the National Conflict Resolution Center.
Through community engagement including meetings, webinars, and surveys, businesses have
told city staff that the top issues they are confronting because of the pandemic are non-
payment of rent, rent relief and those associated with lease and rental agreements.
City’s other business relief efforts
The commercial eviction moratorium is one part of the city’s efforts to help local businesses
weather the pandemic. On the same day the City Council adopted the commercial eviction
moratorium, the City Council formed the Ad Hoc City Council Economic Revitalization
Subcommittee. With the subcommittee’s recommendation, the City Council adopted an
Economic Recovery and Revitalization Initiative with $5 million in funding to support Carlsbad
businesses, including:
• $4,400,000 for a small business loan program
• $250,000 for a joint marketing strategy with the Chamber of Commerce and the
Carlsbad Village Association
• $50,000 for landlord-tenant mediation and renegotiation services
• $50,000 for relief for the leaseholders of city properties
• $25,000 for business community outreach
• An estimated $15,000 - $25,000 for outdoor activation permit fee reimbursement and
waivers revenue offset
The City Council has also:
• Empowered the director of emergency services (the city manager) to temporarily
suspend or modify certain land development standards and fees to allow businesses to
move their operations outdoors
• Funded resources and materials delivered to Carlsbad hotels and visitor-serving
accommodations, encouraging guests to observe safety protocols while in the city
Sept. 15, 2020 Item #8 Page 3 of 71
• Authorized up $50,000 in matching funds for the Gift Carlsbad Shop Local program
The Ad Hoc City Council Economic Revitalization Subcommittee has met on nearly a weekly
basis since its first meeting in April. Updates on the work of the subcommittee and the
economic response, recovery, and revitalization efforts by city staff are provided during the
regular COVID-19 Actions and Expenditures Report at City Council meetings.
Recent developments in residential eviction relief
Coinciding with the expiration of the Judicial Council emergency rule halting all evictions, the
state legislature passed and the governor signed Assembly Bill 3088 (AB 3088), The Tenant,
Homeowner, and Small Landlord Relief and Stabilization Act of 2020 (Exhibit 3). This urgency
legislation took effect Sept. 1, 2020 and provides statewide residential eviction relief for
tenants unable to pay rent because of COVID-19 related financial distress.
A few days later, the federal Centers for Disease Control and Prevention issued an order
providing nationwide residential eviction relief (Exhibit 4). The CDC order took effect Sept. 4,
2020.
AB 3088
AB 3088 is dense and complex. To help tenants and landlords understand and comply with its
provisions, the state has created a new website, landlordtenant.dre.ca.gov, with information
about the bill.
Briefly, if a residential tenant is unable to pay all or some of the rent owed between March 1,
2020 and Aug. 31, 2020, AB 3088 prevents the landlord from evicting the tenant if the tenant
provides the landlord with a declaration of COVID-19 related financial distress within 15
business days of receiving a notice to vacate. If the tenant’s household income is more than
130% of the county median household income and over $100,000, the landlord may require the
tenant to provide proof of the tenant’s COVID-19-related hardship.
If a residential tenant is unable to pay all or some of the rent owed between Sept. 1, 2020, and
Jan. 31, 2021, AB 3088 prevents the landlord from evicting the tenant if the tenant pays at least
25% of the rent due during that period by Jan. 31, 2021. Again, the tenant must supply a
declaration of COVID-19-related financial distress and a landlord may require a higher income
tenant to provide proof of hardship.
Notwithstanding the eviction protection, the residential tenant still owes any unpaid rent due
between March 4, 2020 and Jan. 31, 2020. Beginning March 1, 2021, the landlord may recover
unpaid rent in a small claims court action.
Existing local residential rent relief ordinances may remain in effect until they expire. Any future
local residential rent relief ordinances may not undermine AB 3088’s framework.
Evictions for reasons other than COVID-19-related financial distress may resume October 5,
2020.
Sept. 15, 2020 Item #8 Page 4 of 71
CDC order
The CDC order enacts a temporary moratorium on residential evictions through December 31,
2020, if the reason for the eviction is nonpayment of rent. To invoke the order, a tenant must
provide a signed declaration to the landlord indicating:
• The tenant has used best efforts to obtain all available government assistance for rent
• The tenant either:
o Expects to earn no more than $99,000 in annual income in 2020 (or no more
than $198,000 if filing a joint tax return);
o Was not required to report any income in 2019 to the U.S. Internal Revenue
Service; or
o Received an economic impact payment stimulus check in keeping with Section
2201 of the CARES Act1
• The tenant is unable to pay the full rent due to substantial loss of household income,
loss of compensable hours of work or wages, a lay-off or extraordinary out-of-pocket
medical expenses
• The tenant is using best efforts to make timely partial payments that are as close to the
full payment as the tenant’s circumstances may permit, taking into account other
nondiscretionary expenses
• Eviction would likely render the tenant homeless — or force the tenant to move into
and live in close quarters in a new congregate or shared living setting — because the
tenant has no other available housing options.
The CDC’s order does not relieve a tenant of any obligation to pay rent or preclude a residential
eviction for reasons other than nonpayment of rent. The order also does not apply in any state
or local jurisdiction with a more protective residential eviction moratorium.
Fiscal Analysis
There is no fiscal impact associated with the City Council’s receipt of this update.
Next Steps
Without further City Council direction and action, the City’s temporary commercial eviction
moratorium will continue in effect “until the local emergency is terminated, or the withdrawal
of Governor Newsom’s Executive Order N-28-20, whichever occurs sooner.”
Environmental Evaluation (CEQA)
This action is statutorily exempt from the California Environmental Quality Act under California
Public Resources Code Section 21080, subdivision (b)(4), applicable to specific actions necessary
to prevent or mitigate an emergency.
Public Notification and Outreach
This item was noticed in accordance with the Ralph M. Brown Act and was available for
1 The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, is a $2.2 trillion economic stimulus bill
approved in response to the economic fallout of the COVID-19 pandemic. Section 2201 of the CARES Act provides
for recovery rebates for certain qualifying individuals and directs the IRS to treat the stimulus payments as tax
credits.
Sept. 15, 2020 Item #8 Page 5 of 71
viewing at least 72 hours prior to the posting of the agenda.
Exhibits
1. City Council Resolution 2020-059
2. Summary of Eviction Moratoria in San Diego County
3. Text of AB 3088
4. Text of CDC order
Sept. 15, 2020 Item #8 Page 6 of 71
RESOLUTION NO. 2020-059
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, TEMPORARILY SUSPENDING EVICTIONS OF COMMERCIAL
TENANTS LOCATED IN THE CITY OF CARLSBAD FOR NONPAYMENT OF RENT
DUE TO COVID-19 RELATED DECREASES IN BUSINESS INCOME
Exhibit 1
WHEREAS, COVID-19 is an emerging respiratory disease and older adults and persons with
severe underlying health conditions are at increased risk of more serious illness after contracting
COVID-19;
WHEREAS, in a short period of time, COVID-19 has rapidly spread throughout California,
including the County of San Diego and the City of Carlsbad; and
WHEREAS, on January 31, 2020, United States Health and Human Services Secretary Alex M.
Azar II declared a Public Health Emergency for the United States, effective January 27, 2020, to aid the
nation's health care community in responding to COVID-19; and
WHEREAS, on February 14, 2020, the San Diego County Public Health Officer determined there
was an imminent and proximate threat to the public health from the introduction of COVID-19 in San
Diego County and declared a Local Health Emergency, which the San Diego County Board of Supervisors
ratified on February 19, 2020; and
WHEREAS, on March 4, 2020, Governor Gavin Newsom proclaimed a State of Emergency to
exist in California because of the threat of COVID-19; and
WHEREAS, on March 11, 2020, the World Health Organization began characterizing COVID-19
as a pandemic; and
WHEREAS, on March 12, 2020, Governor Newsom issued Executive Order N-25-20, which
ordered all residents to heed any orders or guidance of state and public health officials, including the
imposition of social distancing measures, to control the spread of COVID-19; and
WHEREAS, on March 13, 2020, the President of United States declared a national emergency
because of COVID-19; and
WHEREAS, on March 16, 2020, the City of Carlsbad's City Manager, in his role as Director of
Emergency Services, proclaimed a State of Emergency to exist in the City of Carlsbad, which the City
Council ratified on March 17, 2020; and
WHEREAS, on March 16, 2020, Governor Newsom issued Executive Order N-28-20, authorizing
local governments to impose limits on residential or commercial evictions if: (1) the basis for the
Sept. 15, 2020 Item #8 Page 7 of 71
eviction is either nonpayment of rent or a foreclosure; (2) the nonpayment of rent or foreclosure
resulted from a substantial decrease in household or business income, or substantial out-of-pocket
medical expenses; and (3) the decrease in income or out-of-pocket medical expenses are documented
and were caused either by the COVID-19 pandemic or government response to COVID-19; and
WHEREAS, on March 17, 2020, the County of San Diego Public Health Officer issued an amended
order limiting gatherings of a certain number, closing certain business establishments, limiting the
operations of other business establishments, and requiring social distancing, increased sanitation
standards, and the use of telecommuting; and
WHEREAS, on March 19, 2020, the State Public Health Officer ordered all individuals living in
California to stay home or at their place of residence, except as needed to maintain the continuity of
operations offederal critical infrastructure sectors or additional critical sectors designated by the State
Public Health Officer; and
WHEREAS, on March 19, 2020, Governor Newsom issued Executive Order N-33-20, ordering all
residents to immediately heed the March 19, 2020, order of the State Public Health Officer; and
WHEREAS, on March 27, 2020, Governor Newsom issued Executive Order N-37-20, extending
by 60 days the time by which a residential tenant must respond to an unlawful detainer complaint and
prohibiting the enforcement of a writ of a possession if the tenant satisfies specified criteria; and
WHEREAS, on March 27, 2020, the County Public Health Officer issued a new order, effective
March 29, 2020 and continuing until further notice, limiting gatherings of a certain number, closing
certain business establishments, limiting the operations of other business establishments, and
requiring social distancing, increased sanitation standards, and the use of telecommuting; and
WHEREAS, paragraph 9 of the County Public Health Officer's March 27, 2020 Order directs,
pursuant to Health and Safety Code Section 120175.5, subdivision (b), that all governmental entities in
the county take necessary measures within their control to ensure compliance with the order; and
WHEREAS, the effects of the COVID-19 pandemic on the global economy and supply chains are
impacting many local companies due to overseas factories operating at lesser capacity and a drastic
reduction in tourism; and
WHEREAS, as a result of the various Executive Orders and public health orders, businesses
located in the City of Carlsbad have been unable to operate or unable to fully operate, resulting in a
substantial decrease in their income; and
Sept. 15, 2020 Item #8 Page 8 of 71
WHEREAS, loss of income from COVID-19 may inhibit businesses from fulfilling their financial
obligations; and
WHEREAS, further adverse economic impacts from COVID-19 are anticipated, leaving
commercial tenants vulnerable to eviction; and
WHEREAS, displacement of commercial tenants by eviction would worsen COVID-19's
economic impacts by causing financial instability for business owners and employees and by reducing
the available jobs for City of Carlsbad residents once the state of emergency has ended; and
WHEREAS, this resolution enacts a temporary suspension of commercial evictions intended to
promote economic stability and fairness, and to promote a stable business and job market for
employers and employees to return to once the state of emergency has ended; and
WHEREAS, it is in the public interest, and necessary to the protection of life and property, to
take steps to ensure local commercial tenants are not evicted during this state of emergency.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That under the authorization in Governor Newsom's Executive Order N-28-20 and the
City Council's power under California Government Code Section 8634 to issue orders
necessary to protect life and property during a local emergency, and to the extent
permitted by federal law, the City Council orders evictions of commercial tenants
located in the City of Carlsbad to be suspended until the local emergency is terminated,
or the withdrawal of Governor Newsom's Executive Order N-28-20, whichever occurs
sooner, if the commercial tenant satisfies all of the following requirements:
a. Prior to Governor Newsom's proclamation of a State of Emergency on March 4,
2020, the commercial tenant was current on rent due to the landlord under the
terms of the commercial tenant's rental agreement with the landlord.
b. The commercial tenant notifies the landlord in writing, which includes email, before
the rent is due, or within a reasonable time afterwards not to exceed 10 business
days, that the commercial 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, without limitation, the following:
Sept. 15, 2020 Item #8 Page 9 of 71
i. The commercial tenant was unable to operate or fully operate the
commercial tenant's business because:
1. the business was not in one of the federal critical infrastructure
sectors or one of the additional critical sectors designated by the
California State Health Officer, or
2. the business was in a federal or state critical sector, but could not be
operated in compliance with the social distancing and related
requirements imposed by state or local public health officers, or
3. the business was in a federal or state critical sector, but was owner-
operated and the owner was sick with, showing symptoms of, or had
been directly exposed to COVID-19; was caring for another who was
sick with, showing symptoms of, or had been directly exposed to
COVID-19; or was caring for a minor child who did not have school or
child care supervision.
ii. The commercial tenant experienced a substantial decrease in the tenant's
business income resulting from COVID-19, the state of emergency, or related
government response.
c. Within 10 business days of providing notice under paragraph 2(b), the commercial
tenant provides the landlord with documentation or objectively verifiable
information showing the commercial tenant's inability to pay rent was due to
reasons related to COVID-19. Documentation may include, without limitation,
financial statements, business records, physician's letter, and/or bills. If the
commercial tenant does not provide the landlord with the documentation or
objectively verifiable information within this time period, the landlord may pursue
any enforcement action permitted under applicable law and the parties' rental
agreement.
3. That nothing in this resolution shall allow a commercial tenant who is able to pay all or
some of the rent due to delay paying that rent amount.
4. That nothing in this resolution shall relieve a commercial tenant of liability for unpaid
rent or applicable late fees, which the landlord may seek after the expiration of the local
Sept. 15, 2020 Item #8 Page 10 of 71
emergency declaration and which the commercial tenant must pay within three months
of the expiration of the local emergency, unless the landlord and the commercial tenant
agree upon an alternative payment arrangement. If a commercial tenant elects to
vacate the premises while this resolution is effective, all rent due is owed at the time of
the vacancy.
5. That this resolution may be used as an affirmative defense in an unlawful detainer
proceeding commenced in violation of it.
6. That this resolution does not affect any non-eviction legal remedies available to the
landlord or the landlord's ability to enter into alternative payment arrangements with
commercial tenants.
7. That nothing in this order is intended to create, or creates, any rights or benefits,
substantive or procedural, enforceable at law or in equity, against the City of Carlsbad,
its subsidiaries, departments, officers, employees, agents, or any other person.
8. That if state or federal authorities enact laws or issue orders or regulations providing
commercial tenants located in the City of Carlsbad with COVID-19 related eviction relief,
those state or federal laws, orders, or regulations will control over this resolution and
any implementing regulations adopted by the City Manager.
9. That as soon as possible, this resolution is to be filed with the City Clerk's Office and is
to be given widespread notice and publicity.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 7th day of April, 2020, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Blackburn, Bhat-Patel, Schumacher.
Hall.
None.
MATT HALL, Mayor
Sept. 15, 2020 Item #8 Page 11 of 71
COMPARISON OF EVICTION MORATORIUM ORDINANCES IN SAN DIEGO COUNTY
As of September 8, 2020
City Expiration Applicability Tenant
Notification
Documentation
Required
Payback
Period
Late Fees
Allowed
No Fault Eviction
Provisions
Carlsbad Until the local
emergency is
terminated or the
withdrawal of
Governor’s order,
whichever occurs
first
Commercial
Tenants
Within 10 days
after rent is due
Within 10 days of
providing notice
to landlord
Within 3 months
of the expiration
of the local
emergency
Yes None
Chula Vista Sep 30 Residential and
Commercial
Tenants and
Homeowners
Within 7 days
after rent due
date
Within 7 days of
providing notice
to landlord
6 months from
the expiration
date of the
ordinance.
No Prohibits no-fault
eviction unless
necessary for the
health and safety
of tenants,
neighbors, or the
landlord
City of San Diego Sep 30 Residential and
Commercial
Tenants
On or before the
day rent is due
Within 7 days of
providing notice
to landlord
Until Dec 30 No Includes
protection from
no-fault eviction
for tenants who
comply with the
ordinance
County of San
Diego
(unincorporated
areas only)
EXPIRED Jun 30 Residential and
Commercial
Tenants
Within 7 days
after rent due
date
Within 7 days of
providing notice
to landlord
Until Sep 30; one
month extension
possible if tenant
continues to be
impacted by
COVID-19.
No None
Coronado N/A N/A N/A N/A N/A N/A N/A EXHIBIT 2Sept. 15, 2020 Item #8 Page 12 of 71
City Expiration Applicability Tenant
Notification
Documentation
Required
Payback
Period
Late Fees
Allowed
No Fault Eviction
Provisions
Del Mar EXPIRED May 31 Commercial
Tenants
Within 7 days
after rent due
date
Tenant must have
documentation
available
Not specified Not
specified
No
El Cajon N/A N/A N/A N/A N/A N/A N/A
Encinitas Until the local
emergency is
terminated or the
withdrawal of
Governor’s order,
whichever occurs
first
Residential and
Commercial
Tenants
On or before the
day each rent
payment is due
Within 2 weeks of
providing notice
to landlord
6 months from
the date the
ordinance is no
longer effective.
Yes Includes
protection from
no-fault eviction
for tenants who
comply with the
ordinance
Escondido Sep 30 Residential and
Commercial
Tenants
Within 7 days
after rent due
date
Within 14 days of
providing notice
to landlord.
Until Dec 30 No None
Imperial Beach Until the
Governor’s
Executive Order
for the
moratorium
expires
Residential and
Commercial
Tenants
Within 7 days
after the day rent
is due, or 30 days
after rent is due if
circumstances
prevent earlier
notice
Within 7 days
after providing
notice to landlord,
or 30 days after
rent is due if
circumstances
prevent earlier
notice
Payable upon
lifting of
ordinance or
emergency
Yes None
La Mesa EXPIRED May 31 Residential and
Commercial
Tenants
Not Defined Not Required Payable upon
lifting of
ordinance or
emergency
Yes None
Lemon Grove N/A N/A N/A N/A N/A N/A N/A
Sept. 15, 2020 Item #8 Page 13 of 71
City Expiration Applicability Tenant
Notification
Documentation
Required
Payback
Period
Late Fees
Allowed
No Fault Eviction
Provisions
National City Sep 30 Residential and
Commercial
Tenants and
Homeowners
No later than 7
days after rent is
due
Within 30 days
after the day rent
is due
Until Dec 31 No Includes
protection from
no-fault eviction
for tenants who
comply with the
ordinance
Oceanside EXPIRED May 31 Residential and
Commercial
Tenants
Prior to rent due
date
Within 1 week of
providing notice
to landlord
Not specified Yes None
Poway N/A N/A N/A N/A N/A N/A N/A
San Marcos Sep 30 Residential and
Commercial
Tenants
Within 7 days
after rent due
date
Within 7 days
after rent due
date
Payable upon
lifting of
ordinance or
emergency
Yes None
Solana Beach N/A N/A N/A N/A N/A N/A N/A
Santee EXPIRED Jul 31 Residential and
Commercial
Tenants
Within 7 days
after the day rent
is due
Within 2 weeks of
notifying landlord
Payback period
equivalent to the
length of the
moratorium.
Yes None
Vista N/A N/A N/A N/A N/A N/A N/A
Sept. 15, 2020 Item #8 Page 14 of 71
Assembly Bill No. 3088
CHAPTER 37
An act to amend Sections 1946.2, 1947.12, and 1947.13 of, to amend,
repeal, and add Sections 798.56, 1942.5, 2924.15 of, to add Title 19
(commencing with Section 3273.01) to Part 4 of Division 3 of, and to add
and repeal Section 789.4 of, the Civil Code, and to amend, repeal, and add
Sections 1161 and 1161.2 of, to add Section 1161.2.5 to, to add and repeal
Section 116.223 of, and to add and repeal Chapter 5 (commencing with
Section 1179.01) of Title 3 of Part 3 of, the Code of Civil Procedure, relating
to COVID-19 relief, and declaring the urgency thereof, to take effect
immediately.
[Approved by Governor August 31, 2020. Filed with Secretary
of State August 31, 2020.]
legislative counsel’s digest
AB 3088, Chiu. Tenancy: rental payment default: mortgage forbearance:
state of emergency: COVID-19.
Existing law prescribes various requirements to be satisfied before the
exercise of a power of sale under a mortgage or deed of trust. Existing law
requires that a notice of default and a notice of sale be recorded and that
specified periods of time elapse between the recording and the sale. Existing
law establishes certain requirements in connection with foreclosures on
mortgages and deeds of trust, including restrictions on the actions mortgage
servicers may take while a borrower is attempting to secure a loan
modification or has submitted a loan modification application. Existing law
applies certain of those requirements only to a first lien mortgage or deed
of trust that is secured by owner-occupied residential real property containing
no more than four dwelling units.
This bill, the Tenant, Homeowner, and Small Landlord Relief and
Stabilization Act of 2020, would, among other things, until January 1, 2023,
additionally apply those protections to a first lien mortgage or deed of trust
that is secured by residential real property that is occupied by a tenant,
contains no more than four dwelling units, and meets certain criteria,
including that a tenant occupying the property is unable to pay rent due to
a reduction in income resulting from the novel coronavirus.
The bill would also enact the COVID-19 Small Landlord and Homeowner
Relief Act of 2020 (Homeowner Act), which would require a mortgage
servicer, as defined, to provide a specified written notice to a borrower, as
defined, if the mortgage servicer denies forbearance during the effective
time period, as defined, that states the reasons for that denial if the borrower
was both current on payments as of February 1, 2020, and is experiencing
a financial hardship that prevents the borrower from making timely payments
EXHIBIT 3
Sept. 15, 2020 Item #8 Page 15 of 71
on the mortgage obligation due, directly or indirectly, to the COVID-19
emergency. The Homeowner Act would also require a mortgage servicer
to comply with applicable federal guidance regarding borrower options
following a COVID-19 related forbearance.
Existing law provides that a tenant is guilty of unlawful detainer if the
tenant continues to possess the property without permission of the landlord
after the tenant defaults on rent or fails to perform a condition or covenant
of the lease under which the property is held, among other reasons. Existing
law requires a tenant be served a 3 days’ notice in writing to cure a default
or perform a condition of the lease, or return possession of the property to
the landlord, as specified. Existing law, the Mobilehome Residency Law,
prohibits a tenancy from being terminated unless specified conditions are
met, including that the tenant fails to pay rent, utility charges, or reasonable
incidental service charges, and 3 days’ notice in writing is provided to the
tenant, as specified.
This bill would, until February 1, 2025, enact the COVID-19 Tenant
Relief Act of 2020 (Tenant Act). The Tenant Act would require that any 3
days’ notice that demands payment of COVID-19 rental debt that is served
on a tenant during the covered time period meet specified criteria, including
that the notice include an unsigned copy of a declaration of
COVID-19-related financial distress and that the notice advise the tenant
that the tenant will not be evicted for failure to comply with the notice if
the tenant delivers a signed declaration of COVID-19-related financial
distress to the landlord, as specified. The Tenant Act would define “covered
time period” for purposes of these provisions to mean the time between
March 1, 2020, and January 31, 2021. The Tenant Act would deem a 3 days’
notice that fails to comply with this criteria void and insufficient to support
a judgment for unlawful detainer or to terminate a tenancy under the
Mobilehome Residency Law. The Tenant Act would prohibit a tenant that
delivers a declaration, under penalty of perjury, of COVID-19-related
financial distress pursuant to these provisions from being deemed in default
with regard to the COVID-19 rental debt, as specified. By expanding the
crime of perjury, this bill would create a state-mandated local program. The
Tenant Act would prohibit a court from finding a tenant guilty of an unlawful
detainer before February 1, 2021, subject to certain exceptions, including
if the tenant was guilty of the unlawful detainer before March 1, 2020. The
bill would prohibit, before October 5, 2020, a court from taking specified
actions with respect to unlawful detainer actions, including issuing a
summons on a complaint for unlawful detainer in any action that seeks
possession of residential real property and that is based, in whole or in part,
on nonpayment of rent or other charges.
The Tenant Act would also authorize a landlord to require a high-income
tenant, as defined, to additionally submit documentation supporting the
claim that the tenant has suffered COVID-19-related financial distress if
the landlord has proof of income showing the tenant is a high-income tenant.
The Tenant Act would preempt an ordinance, resolution, regulation, or
administrative action adopted by a city, county, or city and county in
2 Sept. 15, 2020 Item #8 Page 16 of 71
response to the COVID-19 pandemic to protect tenants from eviction based
on nonpayment of rental payments, as specified.
The bill would require the Business, Consumer Services and Housing
Agency to, in consultation with the Department of Finance, engage with
residential tenants, landlords, property owners, deed-restricted affordable
housing providers, and financial sector stakeholders about strategies and
approaches to direct potential future federal stimulus funding to most
effectively and efficiently provide relief to distressed tenants, landlords,
and property owners, as specified.
Existing law prohibits a landlord from taking specified actions with intent
to terminate the occupancy under any lease or other tenancy or estate at
will, however created, of property used by a tenant as the tenant’s residence.
Existing law makes a violator of those provisions subject to certain damages
in a civil action.
This bill would, until February 1, 2021, make a violator of those provisions
whose tenant has provided to that violator the declaration of
COVID-19-related financial distress described above liable for damages in
an amount between $1,000 and $2,500.
Existing law, The Small Claims Act, grants jurisdiction to a small claims
court in cases where the amount demanded does not exceed $5,000, as
specified, and prohibits a person from filing more than 2 small claims actions
in which the amount demanded exceeds $2,500 anywhere in the state in any
calendar year.
This bill would instead, until February 1, 2025, provide that a small claims
court has jurisdiction in any action for recovery of COVID-19 rental debt,
as defined, regardless of the amount demanded and would provide that a
claim for recovery of a COVID-19 rental debt is exempt from the prohibition
on filing more than 2 small claims actions described above.
Existing law, the Tenant Protection Act of 2019, prohibits, with certain
exceptions, an owner of residential real property from increasing the gross
rental rate for a dwelling or unit more than 5% plus the “percentage change
in the cost of living,” as defined, or 10%, whichever is lower, of the lowest
gross rental rate charged for the immediately preceding 12 months, subject
to specified conditions. The act exempts certain types of residential real
properties, including dormitories constructed and maintained in connection
with any higher education institution within the state for use and occupancy
by students in attendance at the institution and housing that has been issued
a certificate of occupancy within the previous 15 years.
This bill would revise and recast those exemptions to exempt dormitories
owned and operated by an institution of higher education or a kindergarten
and grades 1 to 12, inclusive, school. The bill would also make clarifying
changes to the definition of “percentage change in the cost of living.”
This bill would also make clarifying and conforming changes.
The bill would include findings that changes proposed by this bill address
a matter of statewide concern rather than a municipal affair and, therefore,
apply to all cities, including charter cities.
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Sept. 15, 2020 Item #8 Page 17 of 71
The California Constitution requires the state to reimburse local agencies
and school districts for certain costs mandated by the state. Statutory
provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for
a specified reason.
This bill would declare that it is to take effect immediately as an urgency
statute.
The people of the State of California do enact as follows:
SECTION 1. This act shall be known, and may be cited, as the Tenant,
Homeowner, and Small Landlord Relief and Stabilization Act of 2020.
SEC. 2. The Legislature finds and declares all of the following:
(a) On March 4, 2020, Governor Gavin Newsom proclaimed a state of
emergency in response to the COVID-19 pandemic. Measures necessary to
contain the spread of COVID-19 have brought about widespread economic
and societal disruption, placing the state in unprecedented circumstances.
(b) At the end of 2019, California already faced a housing affordability
crisis. United States Census data showed that a majority of California tenant
households qualified as “rent-burdened,” meaning that 30 percent or more
of their income was used to pay rent. Over one-quarter of California tenant
households were “severely rent-burdened,” meaning that they were spending
over one-half of their income on rent alone.
(c) Millions of Californians are unexpectedly, and through no fault of
their own, facing new public health requirements and unable to work and
cover many basic expenses, creating tremendous uncertainty for California
tenants, small landlords, and homeowners. While the Judicial Council’s
Emergency Rule 1, effective April 6, 2020, temporarily halted evictions
and stabilized housing for distressed Californians in furtherance of public
health goals, the Judicial Council voted on August 14, 2020, to extend these
protections through September 1, 2020, to allow the Legislature time to act
before the end of the 2019-20 Legislative Session.
(d) There are strong indications that large numbers of California tenants
will soon face eviction from their homes based on an inability to pay the
rent or other financial obligations. Even if tenants are eventually able to pay
their rent, small landlords will continue to face challenges covering their
expenses, including mortgage payments in the ensuing months, placing
them at risk of default and broader destabilization of the economy.
(e) There are strong indications that many homeowners will also lose
their homes to foreclosure. While temporary forbearance is available to
homeowners with federally backed mortgages pursuant to the CARES Act,
and while some other lenders have voluntarily agreed to provide borrowers
with additional time to pay, not all mortgages are covered.
(f) Stabilizing the housing situation for tenants and landlords is to the
mutual benefit of both groups and will help the state address the pandemic,
protect public health, and set the stage for recovery. It is, therefore, the
4 Sept. 15, 2020 Item #8 Page 18 of 71
intent of the Legislature and the State of California to establish through
statute a framework for all impacted parties to negotiate and avoid as many
evictions and foreclosures as possible.
(g) This bill shall not relieve tenants, homeowners, or landlords of their
financial and contractual obligations, but rather it seeks to forestall massive
social and public health harm by preventing unpaid rental debt from serving
as a cause of action for eviction or foreclosure during this historic and
unforeseeable period and from unduly burdening the recovery through
negative credit reporting. This framework for temporary emergency relief
for financially distressed tenants, homeowners, and small landlords seeks
to help stabilize Californians through the state of emergency in protection
of their health and without the loss of their homes and property.
SEC. 3. Section 789.4 is added to the Civil Code, to read:
789.4. (a) In addition to the damages provided in subdivision (c) of
Section 789.3 of the Civil Code, a landlord who violates Section 789.3 of
the Civil Code, if the tenant has provided a declaration of COVID-19
financial distress pursuant to Section 1179.03 of the Code of Civil Procedure,
shall be liable for damages in an amount that is at least one thousand dollars
($1,000) but not more than two thousand five hundred dollars ($2,500), as
determined by the trier of fact.
(b) This section shall remain in effect until February 1, 2021, and as of
that date is repealed.
SEC. 4. Section 798.56 of the Civil Code is amended to read:
798.56. A tenancy shall be terminated by the management only for one
or more of the following reasons:
(a) Failure of the homeowner or resident to comply with a local ordinance
or state law or regulation relating to mobilehomes within a reasonable time
after the homeowner receives a notice of noncompliance from the appropriate
governmental agency.
(b) Conduct by the homeowner or resident, upon the park premises, that
constitutes a substantial annoyance to other homeowners or residents.
(c) (1) Conviction of the homeowner or resident for prostitution, for a
violation of subdivision (d) of Section 243, paragraph (2) of subdivision
(a), or subdivision (b), of Section 245, Section 288, or Section 451, of the
Penal Code, or a felony controlled substance offense, if the act resulting in
the conviction was committed anywhere on the premises of the mobilehome
park, including, but not limited to, within the homeowner’s mobilehome.
(2) However, the tenancy may not be terminated for the reason specified
in this subdivision if the person convicted of the offense has permanently
vacated, and does not subsequently reoccupy, the mobilehome.
(d) Failure of the homeowner or resident to comply with a reasonable
rule or regulation of the park that is part of the rental agreement or any
amendment thereto.
No act or omission of the homeowner or resident shall constitute a failure
to comply with a reasonable rule or regulation unless and until the
management has given the homeowner written notice of the alleged rule or
regulation violation and the homeowner or resident has failed to adhere to
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Sept. 15, 2020 Item #8 Page 19 of 71
the rule or regulation within seven days. However, if a homeowner has been
given a written notice of an alleged violation of the same rule or regulation
on three or more occasions within a 12-month period after the homeowner
or resident has violated that rule or regulation, no written notice shall be
required for a subsequent violation of the same rule or regulation.
Nothing in this subdivision shall relieve the management from its
obligation to demonstrate that a rule or regulation has in fact been violated.
(e) (1) Except as provided for in the COVID-19 Tenant Relief Act of
2020 (Chapter 5 (commencing with Section 1179.01) of Title 3 of Part 3 of
the Code of Civil Procedure), nonpayment of rent, utility charges, or
reasonable incidental service charges; provided that the amount due has
been unpaid for a period of at least five days from its due date, and provided
that the homeowner shall be given a three-day written notice subsequent to
that five-day period to pay the amount due or to vacate the tenancy. For
purposes of this subdivision, the five-day period does not include the date
the payment is due. The three-day written notice shall be given to the
homeowner in the manner prescribed by Section 1162 of the Code of Civil
Procedure. A copy of this notice shall be sent to the persons or entities
specified in subdivision (b) of Section 798.55 within 10 days after notice
is delivered to the homeowner. If the homeowner cures the default, the
notice need not be sent. The notice may be given at the same time as the 60
days’ notice required for termination of the tenancy. A three-day notice
given pursuant to this subdivision shall contain the following provisions
printed in at least 12-point boldface type at the top of the notice, with the
appropriate number written in the blank:
“Warning: This notice is the (insert number) three-day notice for nonpayment
of rent, utility charges, or other reasonable incidental services that has been
served upon you in the last 12 months. Pursuant to Civil Code Section 798.56
(e) (5), if you have been given a three-day notice to either pay rent, utility
charges, or other reasonable incidental services or to vacate your tenancy
on three or more occasions within a 12-month period, management is not
required to give you a further three-day period to pay rent or vacate the
tenancy before your tenancy can be terminated.”
(2) Payment by the homeowner prior to the expiration of the three-day
notice period shall cure a default under this subdivision. If the homeowner
does not pay prior to the expiration of the three-day notice period, the
homeowner shall remain liable for all payments due up until the time the
tenancy is vacated.
(3) Payment by the legal owner, as defined in Section 18005.8 of the
Health and Safety Code, any junior lienholder, as defined in Section 18005.3
of the Health and Safety Code, or the registered owner, as defined in Section
18009.5 of the Health and Safety Code, if other than the homeowner, on
behalf of the homeowner prior to the expiration of 30 calendar days
following the mailing of the notice to the legal owner, each junior lienholder,
and the registered owner provided in subdivision (b) of Section 798.55,
shall cure a default under this subdivision with respect to that payment.
6 Sept. 15, 2020 Item #8 Page 20 of 71
(4) Cure of a default of rent, utility charges, or reasonable incidental
service charges by the legal owner, any junior lienholder, or the registered
owner, if other than the homeowner, as provided by this subdivision, may
not be exercised more than twice during a 12-month period.
(5) If a homeowner has been given a three-day notice to pay the amount
due or to vacate the tenancy on three or more occasions within the preceding
12-month period and each notice includes the provisions specified in
paragraph (1), no written three-day notice shall be required in the case of a
subsequent nonpayment of rent, utility charges, or reasonable incidental
service charges.
In that event, the management shall give written notice to the homeowner
in the manner prescribed by Section 1162 of the Code of Civil Procedure
to remove the mobilehome from the park within a period of not less than
60 days, which period shall be specified in the notice. A copy of this notice
shall be sent to the legal owner, each junior lienholder, and the registered
owner of the mobilehome, if other than the homeowner, as specified in
paragraph (b) of Section 798.55, by certified or registered mail, return receipt
requested, within 10 days after notice is sent to the homeowner.
(6) When a copy of the 60 days’ notice described in paragraph (5) is sent
to the legal owner, each junior lienholder, and the registered owner of the
mobilehome, if other than the homeowner, the default may be cured by any
of them on behalf of the homeowner prior to the expiration of 30 calendar
days following the mailing of the notice, if all of the following conditions
exist:
(A) A copy of a three-day notice sent pursuant to subdivision (b) of
Section 798.55 to a homeowner for the nonpayment of rent, utility charges,
or reasonable incidental service charges was not sent to the legal owner,
junior lienholder, or registered owner, of the mobilehome, if other than the
homeowner, during the preceding 12-month period.
(B) The legal owner, junior lienholder, or registered owner of the
mobilehome, if other than the homeowner, has not previously cured a default
of the homeowner during the preceding 12-month period.
(C) The legal owner, junior lienholder or registered owner, if other than
the homeowner, is not a financial institution or mobilehome dealer.
If the default is cured by the legal owner, junior lienholder, or registered
owner within the 30-day period, the notice to remove the mobilehome from
the park described in paragraph (5) shall be rescinded.
(f) Condemnation of the park.
(g) Change of use of the park or any portion thereof, provided:
(1) The management gives the homeowners at least 15 days’ written
notice that the management will be appearing before a local governmental
board, commission, or body to request permits for a change of use of the
mobilehome park.
(2) After all required permits requesting a change of use have been
approved by the local governmental board, commission, or body, the
management shall give the homeowners six months’ or more written notice
of termination of tenancy.
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Sept. 15, 2020 Item #8 Page 21 of 71
If the change of use requires no local governmental permits, then notice
shall be given 12 months or more prior to the management’s determination
that a change of use will occur. The management in the notice shall disclose
and describe in detail the nature of the change of use.
(3) The management gives each proposed homeowner written notice
thereof prior to the inception of the homeowner’s tenancy that the
management is requesting a change of use before local governmental bodies
or that a change of use request has been granted.
(4) The notice requirements for termination of tenancy set forth in
Sections 798.56 and 798.57 shall be followed if the proposed change actually
occurs.
(5) A notice of a proposed change of use given prior to January 1, 1980,
that conforms to the requirements in effect at that time shall be valid. The
requirements for a notice of a proposed change of use imposed by this
subdivision shall be governed by the law in effect at the time the notice was
given.
(h) The report required pursuant to subdivisions (b) and (i) of Section
65863.7 of the Government Code shall be given to the homeowners or
residents at the same time that notice is required pursuant to subdivision (g)
of this section.
(i) For purposes of this section, “financial institution” means a state or
national bank, state or federal savings and loan association or credit union,
or similar organization, and mobilehome dealer as defined in Section 18002.6
of the Health and Safety Code or any other organization that, as part of its
usual course of business, originates, owns, or provides loan servicing for
loans secured by a mobilehome.
(j) This section remain in effect until February 1, 2025, and as of that
date is repealed.
SEC. 5. Section 798.56 is added to the Civil Code, to read:
798.56. A tenancy shall be terminated by the management only for one
or more of the following reasons:
(a) Failure of the homeowner or resident to comply with a local ordinance
or state law or regulation relating to mobilehomes within a reasonable time
after the homeowner receives a notice of noncompliance from the appropriate
governmental agency.
(b) Conduct by the homeowner or resident, upon the park premises, that
constitutes a substantial annoyance to other homeowners or residents.
(c) (1) Conviction of the homeowner or resident for prostitution, for a
violation of subdivision (d) of Section 243, paragraph (2) of subdivision
(a), or subdivision (b), of Section 245, Section 288, or Section 451, of the
Penal Code, or a felony controlled substance offense, if the act resulting in
the conviction was committed anywhere on the premises of the mobilehome
park, including, but not limited to, within the homeowner’s mobilehome.
(2) However, the tenancy may not be terminated for the reason specified
in this subdivision if the person convicted of the offense has permanently
vacated, and does not subsequently reoccupy, the mobilehome.
8 Sept. 15, 2020 Item #8 Page 22 of 71
(d) Failure of the homeowner or resident to comply with a reasonable
rule or regulation of the park that is part of the rental agreement or any
amendment thereto.
No act or omission of the homeowner or resident shall constitute a failure
to comply with a reasonable rule or regulation unless and until the
management has given the homeowner written notice of the alleged rule or
regulation violation and the homeowner or resident has failed to adhere to
the rule or regulation within seven days. However, if a homeowner has been
given a written notice of an alleged violation of the same rule or regulation
on three or more occasions within a 12-month period after the homeowner
or resident has violated that rule or regulation, no written notice shall be
required for a subsequent violation of the same rule or regulation.
Nothing in this subdivision shall relieve the management from its
obligation to demonstrate that a rule or regulation has in fact been violated.
(e) (1) Nonpayment of rent, utility charges, or reasonable incidental
service charges; provided that the amount due has been unpaid for a period
of at least five days from its due date, and provided that the homeowner
shall be given a three-day written notice subsequent to that five-day period
to pay the amount due or to vacate the tenancy. For purposes of this
subdivision, the five-day period does not include the date the payment is
due. The three-day written notice shall be given to the homeowner in the
manner prescribed by Section 1162 of the Code of Civil Procedure. A copy
of this notice shall be sent to the persons or entities specified in subdivision
(b) of Section 798.55 within 10 days after notice is delivered to the
homeowner. If the homeowner cures the default, the notice need not be sent.
The notice may be given at the same time as the 60 days’ notice required
for termination of the tenancy. A three-day notice given pursuant to this
subdivision shall contain the following provisions printed in at least 12-point
boldface type at the top of the notice, with the appropriate number written
in the blank:
“Warning: This notice is the (insert number) three-day notice for
nonpayment of rent, utility charges, or other reasonable incidental services
that has been served upon you in the last 12 months. Pursuant to Civil Code
Section 798.56 (e) (5), if you have been given a three-day notice to either
pay rent, utility charges, or other reasonable incidental services or to vacate
your tenancy on three or more occasions within a 12-month period,
management is not required to give you a further three-day period to pay
rent or vacate the tenancy before your tenancy can be terminated.”
(2) Payment by the homeowner prior to the expiration of the three-day
notice period shall cure a default under this subdivision. If the homeowner
does not pay prior to the expiration of the three-day notice period, the
homeowner shall remain liable for all payments due up until the time the
tenancy is vacated.
(3) Payment by the legal owner, as defined in Section 18005.8 of the
Health and Safety Code, any junior lienholder, as defined in Section 18005.3
of the Health and Safety Code, or the registered owner, as defined in Section
18009.5 of the Health and Safety Code, if other than the homeowner, on
9
Sept. 15, 2020 Item #8 Page 23 of 71
behalf of the homeowner prior to the expiration of 30 calendar days
following the mailing of the notice to the legal owner, each junior lienholder,
and the registered owner provided in subdivision (b) of Section 798.55,
shall cure a default under this subdivision with respect to that payment.
(4) Cure of a default of rent, utility charges, or reasonable incidental
service charges by the legal owner, any junior lienholder, or the registered
owner, if other than the homeowner, as provided by this subdivision, may
not be exercised more than twice during a 12-month period.
(5) If a homeowner has been given a three-day notice to pay the amount
due or to vacate the tenancy on three or more occasions within the preceding
12-month period and each notice includes the provisions specified in
paragraph (1), no written three-day notice shall be required in the case of a
subsequent nonpayment of rent, utility charges, or reasonable incidental
service charges.
In that event, the management shall give written notice to the homeowner
in the manner prescribed by Section 1162 of the Code of Civil Procedure
to remove the mobilehome from the park within a period of not less than
60 days, which period shall be specified in the notice. A copy of this notice
shall be sent to the legal owner, each junior lienholder, and the registered
owner of the mobilehome, if other than the homeowner, as specified in
paragraph (b) of Section 798.55, by certified or registered mail, return receipt
requested, within 10 days after notice is sent to the homeowner.
(6) When a copy of the 60 days’ notice described in paragraph (5) is sent
to the legal owner, each junior lienholder, and the registered owner of the
mobilehome, if other than the homeowner, the default may be cured by any
of them on behalf of the homeowner prior to the expiration of 30 calendar
days following the mailing of the notice, if all of the following conditions
exist:
(A) A copy of a three-day notice sent pursuant to subdivision (b) of
Section 798.55 to a homeowner for the nonpayment of rent, utility charges,
or reasonable incidental service charges was not sent to the legal owner,
junior lienholder, or registered owner, of the mobilehome, if other than the
homeowner, during the preceding 12-month period.
(B) The legal owner, junior lienholder, or registered owner of the
mobilehome, if other than the homeowner, has not previously cured a default
of the homeowner during the preceding 12-month period.
(C) The legal owner, junior lienholder or registered owner, if other than
the homeowner, is not a financial institution or mobilehome dealer.
If the default is cured by the legal owner, junior lienholder, or registered
owner within the 30-day period, the notice to remove the mobilehome from
the park described in paragraph (5) shall be rescinded.
(f) Condemnation of the park.
(g) Change of use of the park or any portion thereof, provided:
(1) The management gives the homeowners at least 15 days’ written
notice that the management will be appearing before a local governmental
board, commission, or body to request permits for a change of use of the
mobilehome park.
10 Sept. 15, 2020 Item #8 Page 24 of 71
(2) After all required permits requesting a change of use have been
approved by the local governmental board, commission, or body, the
management shall give the homeowners six months’ or more written notice
of termination of tenancy.
If the change of use requires no local governmental permits, then notice
shall be given 12 months or more prior to the management’s determination
that a change of use will occur. The management in the notice shall disclose
and describe in detail the nature of the change of use.
(3) The management gives each proposed homeowner written notice
thereof prior to the inception of the homeowner’s tenancy that the
management is requesting a change of use before local governmental bodies
or that a change of use request has been granted.
(4) The notice requirements for termination of tenancy set forth in
Sections 798.56 and 798.57 shall be followed if the proposed change actually
occurs.
(5) A notice of a proposed change of use given prior to January 1, 1980,
that conforms to the requirements in effect at that time shall be valid. The
requirements for a notice of a proposed change of use imposed by this
subdivision shall be governed by the law in effect at the time the notice was
given.
(h) The report required pursuant to subdivisions (b) and (i) of Section
65863.7 of the Government Code shall be given to the homeowners or
residents at the same time that notice is required pursuant to subdivision (g)
of this section.
(i) For purposes of this section, “financial institution” means a state or
national bank, state or federal savings and loan association or credit union,
or similar organization, and mobilehome dealer as defined in Section 18002.6
of the Health and Safety Code or any other organization that, as part of its
usual course of business, originates, owns, or provides loan servicing for
loans secured by a mobilehome.
(j) This section shall become operative on February 1, 2025.
SEC. 6. Section 1942.5 of the Civil Code is amended to read:
1942.5. (a) If the lessor retaliates against the lessee because of the
exercise by the lessee of the lessee’s rights under this chapter or because of
the lessee’s complaint to an appropriate agency as to tenantability of a
dwelling, and if the lessee of a dwelling is not in default as to the payment
of rent, the lessor may not recover possession of a dwelling in any action
or proceeding, cause the lessee to quit involuntarily, increase the rent, or
decrease any services within 180 days of any of the following:
(1) After the date upon which the lessee, in good faith, has given notice
pursuant to Section 1942, has provided notice of a suspected bed bug
infestation, or has made an oral complaint to the lessor regarding
tenantability.
(2) After the date upon which the lessee, in good faith, has filed a written
complaint, or an oral complaint which is registered or otherwise recorded
in writing, with an appropriate agency, of which the lessor has notice, for
the purpose of obtaining correction of a condition relating to tenantability.
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Sept. 15, 2020 Item #8 Page 25 of 71
(3) After the date of an inspection or issuance of a citation, resulting
from a complaint described in paragraph (2) of which the lessor did not
have notice.
(4) After the filing of appropriate documents commencing a judicial or
arbitration proceeding involving the issue of tenantability.
(5) After entry of judgment or the signing of an arbitration award, if any,
when in the judicial proceeding or arbitration the issue of tenantability is
determined adversely to the lessor.
In each instance, the 180-day period shall run from the latest applicable
date referred to in paragraphs (1) to (5), inclusive.
(b) A lessee may not invoke subdivision (a) more than once in any
12-month period.
(c) To report, or to threaten to report, the lessee or individuals known to
the landlord to be associated with the lessee to immigration authorities is a
form of retaliatory conduct prohibited under subdivision (a). This subdivision
shall in no way limit the definition of retaliatory conduct prohibited under
this section.
(d) Notwithstanding subdivision (a), it is unlawful for a lessor to increase
rent, decrease services, cause a lessee to quit involuntarily, bring an action
to recover possession, or threaten to do any of those acts, for the purpose
of retaliating against the lessee because the lessee has lawfully organized
or participated in a lessees’ association or an organization advocating lessees’
rights or has lawfully and peaceably exercised any rights under the law. It
is also unlawful for a lessor to bring an action for unlawful detainer based
on a cause of action other than nonpayment of COVID-19 rental debt, as
defined in Section 1179.02 of the Code of Civil Procedure, for the purpose
of retaliating against the lessee because the lessee has a COVID-19 rental
debt. In an action brought by or against the lessee pursuant to this
subdivision, the lessee shall bear the burden of producing evidence that the
lessor’s conduct was, in fact, retaliatory.
(e) To report, or to threaten to report, the lessee or individuals known to
the landlord to be associated with the lessee to immigration authorities is a
form of retaliatory conduct prohibited under subdivision (d). This subdivision
shall in no way limit the definition of retaliatory conduct prohibited under
this section.
(f) This section does not limit in any way the exercise by the lessor of
the lessor’s rights under any lease or agreement or any law pertaining to the
hiring of property or the lessor’s right to do any of the acts described in
subdivision (a) or (d) for any lawful cause. Any waiver by a lessee of the
lessee’s rights under this section is void as contrary to public policy.
(g) Notwithstanding subdivisions (a) to (f), inclusive, a lessor may recover
possession of a dwelling and do any of the other acts described in subdivision
(a) within the period or periods prescribed therein, or within subdivision
(d), if the notice of termination, rent increase, or other act, and any pleading
or statement of issues in an arbitration, if any, states the ground upon which
the lessor, in good faith, seeks to recover possession, increase rent, or do
12 Sept. 15, 2020 Item #8 Page 26 of 71
any of the other acts described in subdivision (a) or (d). If the statement is
controverted, the lessor shall establish its truth at the trial or other hearing.
(h) Any lessor or agent of a lessor who violates this section shall be liable
to the lessee in a civil action for all of the following:
(1) The actual damages sustained by the lessee.
(2) Punitive damages in an amount of not less than one hundred dollars
($100) nor more than two thousand dollars ($2,000) for each retaliatory act
where the lessor or agent has been guilty of fraud, oppression, or malice
with respect to that act.
(i) In any action brought for damages for retaliatory eviction, the court
shall award reasonable attorney’s fees to the prevailing party if either party
requests attorney’s fees upon the initiation of the action.
(j) The remedies provided by this section shall be in addition to any other
remedies provided by statutory or decisional law.
(k) A lessor does not violate subdivision (c) or (e) by complying with
any legal obligation under any federal government program that provides
for rent limitations or rental assistance to a qualified tenant.
(l) This section shall remain in effect until February 1, 2021, and as of
that date is repealed.
SEC. 7. Section 1942.5 is added to the Civil Code, to read:
1942.5. (a) If the lessor retaliates against the lessee because of the
exercise by the lessee of the lessee’s rights under this chapter or because of
the lessee’s complaint to an appropriate agency as to tenantability of a
dwelling, and if the lessee of a dwelling is not in default as to the payment
of rent, the lessor may not recover possession of a dwelling in any action
or proceeding, cause the lessee to quit involuntarily, increase the rent, or
decrease any services within 180 days of any of the following:
(1) After the date upon which the lessee, in good faith, has given notice
pursuant to Section 1942, has provided notice of a suspected bed bug
infestation, or has made an oral complaint to the lessor regarding
tenantability.
(2) After the date upon which the lessee, in good faith, has filed a written
complaint, or an oral complaint which is registered or otherwise recorded
in writing, with an appropriate agency, of which the lessor has notice, for
the purpose of obtaining correction of a condition relating to tenantability.
(3) After the date of an inspection or issuance of a citation, resulting
from a complaint described in paragraph (2) of which the lessor did not
have notice.
(4) After the filing of appropriate documents commencing a judicial or
arbitration proceeding involving the issue of tenantability.
(5) After entry of judgment or the signing of an arbitration award, if any,
when in the judicial proceeding or arbitration the issue of tenantability is
determined adversely to the lessor.
In each instance, the 180-day period shall run from the latest applicable
date referred to in paragraphs (1) to (5), inclusive.
(b) A lessee may not invoke subdivision (a) more than once in any
12-month period.
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Sept. 15, 2020 Item #8 Page 27 of 71
(c) To report, or to threaten to report, the lessee or individuals known to
the landlord to be associated with the lessee to immigration authorities is a
form of retaliatory conduct prohibited under subdivision (a). This subdivision
shall in no way limit the definition of retaliatory conduct prohibited under
this section.
(d) Notwithstanding subdivision (a), it is unlawful for a lessor to increase
rent, decrease services, cause a lessee to quit involuntarily, bring an action
to recover possession, or threaten to do any of those acts, for the purpose
of retaliating against the lessee because the lessee has lawfully organized
or participated in a lessees’ association or an organization advocating lessees’
rights or has lawfully and peaceably exercised any rights under the law. In
an action brought by or against the lessee pursuant to this subdivision, the
lessee shall bear the burden of producing evidence that the lessor’s conduct
was, in fact, retaliatory.
(e) To report, or to threaten to report, the lessee or individuals known to
the landlord to be associated with the lessee to immigration authorities is a
form of retaliatory conduct prohibited under subdivision (d). This subdivision
shall in no way limit the definition of retaliatory conduct prohibited under
this section.
(f) This section does not limit in any way the exercise by the lessor of
the lessor’s rights under any lease or agreement or any law pertaining to the
hiring of property or the lessor’s right to do any of the acts described in
subdivision (a) or (d) for any lawful cause. Any waiver by a lessee of the
lessee’s rights under this section is void as contrary to public policy.
(g) Notwithstanding subdivisions (a) to (f), inclusive, a lessor may recover
possession of a dwelling and do any of the other acts described in subdivision
(a) within the period or periods prescribed therein, or within subdivision
(d), if the notice of termination, rent increase, or other act, and any pleading
or statement of issues in an arbitration, if any, states the ground upon which
the lessor, in good faith, seeks to recover possession, increase rent, or do
any of the other acts described in subdivision (a) or (d). If the statement is
controverted, the lessor shall establish its truth at the trial or other hearing.
(h) Any lessor or agent of a lessor who violates this section shall be liable
to the lessee in a civil action for all of the following:
(1) The actual damages sustained by the lessee.
(2) Punitive damages in an amount of not less than one hundred dollars
($100) nor more than two thousand dollars ($2,000) for each retaliatory act
where the lessor or agent has been guilty of fraud, oppression, or malice
with respect to that act.
(i) In any action brought for damages for retaliatory eviction, the court
shall award reasonable attorney’s fees to the prevailing party if either party
requests attorney’s fees upon the initiation of the action.
(j) The remedies provided by this section shall be in addition to any other
remedies provided by statutory or decisional law.
(k) A lessor does not violate subdivision (c) or (e) by complying with
any legal obligation under any federal government program that provides
for rent limitations or rental assistance to a qualified tenant.
14 Sept. 15, 2020 Item #8 Page 28 of 71
(l) This section shall become operative on February 1, 2021.
SEC. 8. Section 1946.2 of the Civil Code is amended to read:
1946.2. (a) Notwithstanding any other law, after a tenant has
continuously and lawfully occupied a residential real property for 12 months,
the owner of the residential real property shall not terminate the tenancy
without just cause, which shall be stated in the written notice to terminate
tenancy. If any additional adult tenants are added to the lease before an
existing tenant has continuously and lawfully occupied the residential real
property for 24 months, then this subdivision shall only apply if either of
the following are satisfied:
(1) All of the tenants have continuously and lawfully occupied the
residential real property for 12 months or more.
(2) One or more tenants have continuously and lawfully occupied the
residential real property for 24 months or more.
(b) For purposes of this section, “just cause” includes either of the
following:
(1) At-fault just cause, which is any of the following:
(A) Default in the payment of rent.
(B) A breach of a material term of the lease, as described in paragraph
(3) of Section 1161 of the Code of Civil Procedure, including, but not limited
to, violation of a provision of the lease after being issued a written notice
to correct the violation.
(C) Maintaining, committing, or permitting the maintenance or
commission of a nuisance as described in paragraph (4) of Section 1161 of
the Code of Civil Procedure.
(D) Committing waste as described in paragraph (4) of Section 1161 of
the Code of Civil Procedure.
(E) The tenant had a written lease that terminated on or after January 1,
2020, and after a written request or demand from the owner, the tenant has
refused to execute a written extension or renewal of the lease for an
additional term of similar duration with similar provisions, provided that
those terms do not violate this section or any other provision of law.
(F) Criminal activity by the tenant on the residential real property,
including any common areas, or any criminal activity or criminal threat, as
defined in subdivision (a) of Section 422 of the Penal Code, on or off the
residential real property, that is directed at any owner or agent of the owner
of the residential real property.
(G) Assigning or subletting the premises in violation of the tenant’s lease,
as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(H) The tenant’s refusal to allow the owner to enter the residential real
property as authorized by Sections 1101.5 and 1954 of this code, and
Sections 13113.7 and 17926.1 of the Health and Safety Code.
(I) Using the premises for an unlawful purpose as described in paragraph
(4) of Section 1161 of the Code of Civil Procedure.
(J) The employee, agent, or licensee’s failure to vacate after their
termination as an employee, agent, or a licensee as described in paragraph
(1) of Section 1161 of the Code of Civil Procedure.
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Sept. 15, 2020 Item #8 Page 29 of 71
(K) When the tenant fails to deliver possession of the residential real
property after providing the owner written notice as provided in Section
1946 of the tenant’s intention to terminate the hiring of the real property,
or makes a written offer to surrender that is accepted in writing by the
landlord, but fails to deliver possession at the time specified in that written
notice as described in paragraph (5) of Section 1161 of the Code of Civil
Procedure.
(2) No-fault just cause, which includes any of the following:
(A) (i) Intent to occupy the residential real property by the owner or
their spouse, domestic partner, children, grandchildren, parents, or
grandparents.
(ii) For leases entered into on or after July 1, 2020, clause (i) shall apply
only if the tenant agrees, in writing, to the termination, or if a provision of
the lease allows the owner to terminate the lease if the owner, or their spouse,
domestic partner, children, grandchildren, parents, or grandparents,
unilaterally decides to occupy the residential real property. Addition of a
provision allowing the owner to terminate the lease as described in this
clause to a new or renewed rental agreement or fixed-term lease constitutes
a similar provision for the purposes of subparagraph (E) of paragraph (1).
(B) Withdrawal of the residential real property from the rental market.
(C) (i) The owner complying with any of the following:
(I) An order issued by a government agency or court relating to
habitability that necessitates vacating the residential real property.
(II) An order issued by a government agency or court to vacate the
residential real property.
(III) A local ordinance that necessitates vacating the residential real
property.
(ii) If it is determined by any government agency or court that the tenant
is at fault for the condition or conditions triggering the order or need to
vacate under clause (i), the tenant shall not be entitled to relocation assistance
as outlined in paragraph (3) of subdivision (d).
(D) (i) Intent to demolish or to substantially remodel the residential real
property.
(ii) For purposes of this subparagraph, “substantially remodel” means
the replacement or substantial modification of any structural, electrical,
plumbing, or mechanical system that requires a permit from a governmental
agency, or the abatement of hazardous materials, including lead-based paint,
mold, or asbestos, in accordance with applicable federal, state, and local
laws, that cannot be reasonably accomplished in a safe manner with the
tenant in place and that requires the tenant to vacate the residential real
property for at least 30 days. Cosmetic improvements alone, including
painting, decorating, and minor repairs, or other work that can be performed
safely without having the residential real property vacated, do not qualify
as substantial rehabilitation.
(c) Before an owner of residential real property issues a notice to
terminate a tenancy for just cause that is a curable lease violation, the owner
shall first give notice of the violation to the tenant with an opportunity to
16 Sept. 15, 2020 Item #8 Page 30 of 71
cure the violation pursuant to paragraph (3) of Section 1161 of the Code of
Civil Procedure. If the violation is not cured within the time period set forth
in the notice, a three-day notice to quit without an opportunity to cure may
thereafter be served to terminate the tenancy.
(d) (1) For a tenancy for which just cause is required to terminate the
tenancy under subdivision (a), if an owner of residential real property issues
a termination notice based on a no-fault just cause described in paragraph
(2) of subdivision (b), the owner shall, regardless of the tenant’s income,
at the owner’s option, do one of the following:
(A) Assist the tenant to relocate by providing a direct payment to the
tenant as described in paragraph (3).
(B) Waive in writing the payment of rent for the final month of the
tenancy, prior to the rent becoming due.
(2) If an owner issues a notice to terminate a tenancy for no-fault just
cause, the owner shall notify the tenant of the tenant’s right to relocation
assistance or rent waiver pursuant to this section. If the owner elects to
waive the rent for the final month of the tenancy as provided in subparagraph
(B) of paragraph (1), the notice shall state the amount of rent waived and
that no rent is due for the final month of the tenancy.
(3) (A) The amount of relocation assistance or rent waiver shall be equal
to one month of the tenant’s rent that was in effect when the owner issued
the notice to terminate the tenancy. Any relocation assistance shall be
provided within 15 calendar days of service of the notice.
(B) If a tenant fails to vacate after the expiration of the notice to terminate
the tenancy, the actual amount of any relocation assistance or rent waiver
provided pursuant to this subdivision shall be recoverable as damages in an
action to recover possession.
(C) The relocation assistance or rent waiver required by this subdivision
shall be credited against any other relocation assistance required by any
other law.
(4) An owner’s failure to strictly comply with this subdivision shall
render the notice of termination void.
(e) This section shall not apply to the following types of residential real
properties or residential circumstances:
(1) Transient and tourist hotel occupancy as defined in subdivision (b)
of Section 1940.
(2) Housing accommodations in a nonprofit hospital, religious facility,
extended care facility, licensed residential care facility for the elderly, as
defined in Section 1569.2 of the Health and Safety Code, or an adult
residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the
Manual of Policies and Procedures published by the State Department of
Social Services.
(3) Dormitories owned and operated by an institution of higher education
or a kindergarten and grades 1 to 12, inclusive, school.
(4) Housing accommodations in which the tenant shares bathroom or
kitchen facilities with the owner who maintains their principal residence at
the residential real property.
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Sept. 15, 2020 Item #8 Page 31 of 71
(5) Single-family owner-occupied residences, including a residence in
which the owner-occupant rents or leases no more than two units or
bedrooms, including, but not limited to, an accessory dwelling unit or a
junior accessory dwelling unit.
(6) A property containing two separate dwelling units within a single
structure in which the owner occupied one of the units as the owner’s
principal place of residence at the beginning of the tenancy, so long as the
owner continues in occupancy, and neither unit is an accessory dwelling
unit or a junior accessory dwelling unit.
(7) Housing that has been issued a certificate of occupancy within the
previous 15 years.
(8) Residential real property that is alienable separate from the title to
any other dwelling unit, provided that both of the following apply:
(A) The owner is not any of the following:
(i) A real estate investment trust, as defined in Section 856 of the Internal
Revenue Code.
(ii) A corporation.
(iii) A limited liability company in which at least one member is a
corporation.
(B) (i) The tenants have been provided written notice that the residential
property is exempt from this section using the following statement:
“This property is not subject to the rent limits imposed by Section 1947.12
of the Civil Code and is not subject to the just cause requirements of Section
1946.2 of the Civil Code. This property meets the requirements of Sections
1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any
of the following: (1) a real estate investment trust, as defined by Section
856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability
company in which at least one member is a corporation.”
(ii) For a tenancy existing before July 1, 2020, the notice required under
clause (i) may, but is not required to, be provided in the rental agreement.
(iii) For any tenancy commenced or renewed on or after July 1, 2020,
the notice required under clause (i) must be provided in the rental agreement.
(iv) Addition of a provision containing the notice required under clause
(i) to any new or renewed rental agreement or fixed-term lease constitutes
a similar provision for the purposes of subparagraph (E) of paragraph (1)
of subdivision (b).
(9) Housing restricted by deed, regulatory restriction contained in an
agreement with a government agency, or other recorded document as
affordable housing for persons and families of very low, low, or moderate
income, as defined in Section 50093 of the Health and Safety Code, or
subject to an agreement that provides housing subsidies for affordable
housing for persons and families of very low, low, or moderate income, as
defined in Section 50093 of the Health and Safety Code or comparable
federal statutes.
18 Sept. 15, 2020 Item #8 Page 32 of 71
(f) An owner of residential real property subject to this section shall
provide notice to the tenant as follows:
(1) For any tenancy commenced or renewed on or after July 1, 2020, as
an addendum to the lease or rental agreement, or as a written notice signed
by the tenant, with a copy provided to the tenant.
(2) For a tenancy existing prior to July 1, 2020, by written notice to the
tenant no later than August 1, 2020, or as an addendum to the lease or rental
agreement.
(3) The notification or lease provision shall be in no less than 12-point
type, and shall include the following:
“California law limits the amount your rent can be increased. See Section
1947.12 of the Civil Code for more information. California law also provides
that after all of the tenants have continuously and lawfully occupied the
property for 12 months or more or at least one of the tenants has continuously
and lawfully occupied the property for 24 months or more, a landlord must
provide a statement of cause in any notice to terminate a tenancy. See Section
1946.2 of the Civil Code for more information.”
The provision of the notice shall be subject to Section 1632.
(g) (1) This section does not apply to the following residential real
property:
(A) Residential real property subject to a local ordinance requiring just
cause for termination of a residential tenancy adopted on or before September
1, 2019, in which case the local ordinance shall apply.
(B) Residential real property subject to a local ordinance requiring just
cause for termination of a residential tenancy adopted or amended after
September 1, 2019, that is more protective than this section, in which case
the local ordinance shall apply. For purposes of this subparagraph, an
ordinance is “more protective” if it meets all of the following criteria:
(i) The just cause for termination of a residential tenancy under the local
ordinance is consistent with this section.
(ii) The ordinance further limits the reasons for termination of a residential
tenancy, provides for higher relocation assistance amounts, or provides
additional tenant protections that are not prohibited by any other provision
of law.
(iii) The local government has made a binding finding within their local
ordinance that the ordinance is more protective than the provisions of this
section.
(2) A residential real property shall not be subject to both a local
ordinance requiring just cause for termination of a residential tenancy and
this section.
(3) A local ordinance adopted after September 1, 2019, that is less
protective than this section shall not be enforced unless this section is
repealed.
(h) Any waiver of the rights under this section shall be void as contrary
to public policy.
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Sept. 15, 2020 Item #8 Page 33 of 71
(i) For the purposes of this section, the following definitions shall apply:
(1) “Owner” and “residential real property” have the same meaning as
those terms are defined in Section 1954.51.
(2) “Tenancy” means the lawful occupation of residential real property
and includes a lease or sublease.
(j) This section shall remain in effect only until January 1, 2030, and as
of that date is repealed.
SEC. 9. Section 1947.12 of the Civil Code is amended to read:
1947.12. (a) (1) Subject to subdivision (b), an owner of residential real
property shall not, over the course of any 12-month period, increase the
gross rental rate for a dwelling or a unit more than 5 percent plus the
percentage change in the cost of living, or 10 percent, whichever is lower,
of the lowest gross rental rate charged for that dwelling or unit at any time
during the 12 months prior to the effective date of the increase. In
determining the lowest gross rental amount pursuant to this section, any
rent discounts, incentives, concessions, or credits offered by the owner of
such unit of residential real property and accepted by the tenant shall be
excluded. The gross per-month rental rate and any owner-offered discounts,
incentives, concessions, or credits shall be separately listed and identified
in the lease or rental agreement or any amendments to an existing lease or
rental agreement.
(2) If the same tenant remains in occupancy of a unit of residential real
property over any 12-month period, the gross rental rate for the unit of
residential real property shall not be increased in more than two increments
over that 12-month period, subject to the other restrictions of this subdivision
governing gross rental rate increase.
(b) For a new tenancy in which no tenant from the prior tenancy remains
in lawful possession of the residential real property, the owner may establish
the initial rental rate not subject to subdivision (a). Subdivision (a) is only
applicable to subsequent increases after that initial rental rate has been
established.
(c) A tenant of residential real property subject to this section shall not
enter into a sublease that results in a total rent for the premises that exceeds
the allowable rental rate authorized by subdivision (a). Nothing in this
subdivision authorizes a tenant to sublet or assign the tenant’s interest where
otherwise prohibited.
(d) This section shall not apply to the following residential real properties:
(1) Housing restricted by deed, regulatory restriction contained in an
agreement with a government agency, or other recorded document as
affordable housing for persons and families of very low, low, or moderate
income, as defined in Section 50093 of the Health and Safety Code, or
subject to an agreement that provides housing subsidies for affordable
housing for persons and families of very low, low, or moderate income, as
defined in Section 50093 of the Health and Safety Code or comparable
federal statutes.
(2) Dormitories owned and operated by an institution of higher education
or a kindergarten and grades 1 to 12, inclusive, school.
20 Sept. 15, 2020 Item #8 Page 34 of 71
(3) Housing subject to rent or price control through a public entity’s valid
exercise of its police power consistent with Chapter 2.7 (commencing with
Section 1954.50) that restricts annual increases in the rental rate to an amount
less than that provided in subdivision (a).
(4) Housing that has been issued a certificate of occupancy within the
previous 15 years.
(5) Residential real property that is alienable separate from the title to
any other dwelling unit, provided that both of the following apply:
(A) The owner is not any of the following:
(i) A real estate investment trust, as defined in Section 856 of the Internal
Revenue Code.
(ii) A corporation.
(iii) A limited liability company in which at least one member is a
corporation.
(B) (i) The tenants have been provided written notice that the residential
real property is exempt from this section using the following statement:
“This property is not subject to the rent limits imposed by Section 1947.12
of the Civil Code and is not subject to the just cause requirements of Section
1946.2 of the Civil Code. This property meets the requirements of Sections
1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any
of the following: (1) a real estate investment trust, as defined by Section
856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability
company in which at least one member is a corporation.”
(ii) For a tenancy existing before July 1, 2020, the notice required under
clause (i) may, but is not required to, be provided in the rental agreement.
(iii) For a tenancy commenced or renewed on or after July 1, 2020, the
notice required under clause (i) must be provided in the rental agreement.
(iv) Addition of a provision containing the notice required under clause
(i) to any new or renewed rental agreement or fixed-term lease constitutes
a similar provision for the purposes of subparagraph (E) of paragraph (1)
of subdivision (b) of Section 1946.2.
(6) A property containing two separate dwelling units within a single
structure in which the owner occupied one of the units as the owner’s
principal place of residence at the beginning of the tenancy, so long as the
owner continues in occupancy, and neither unit is an accessory dwelling
unit or a junior accessory dwelling unit.
(e) An owner shall provide notice of any increase in the rental rate,
pursuant to subdivision (a), to each tenant in accordance with Section 827.
(f) (1) On or before January 1, 2030, the Legislative Analyst’s Office
shall report to the Legislature regarding the effectiveness of this section and
Section 1947.13. The report shall include, but not be limited to, the impact
of the rental rate cap pursuant to subdivision (a) on the housing market
within the state.
(2) The report required by paragraph (1) shall be submitted in compliance
with Section 9795 of the Government Code.
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Sept. 15, 2020 Item #8 Page 35 of 71
(g) For the purposes of this section, the following definitions shall apply:
(1) “Consumer Price Index for All Urban Consumers for All Items”
means the following:
(A) The Consumer Price Index for All Urban Consumers for All Items
(CPI-U) for the metropolitan area in which the property is located, as
published by the United States Bureau of Labor Statistics, which are as
follows:
(i) The CPI-U for the Los Angeles-Long Beach-Anaheim metropolitan
area covering the Counties of Los Angeles and Orange.
(ii) The CPI-U for the Riverside-San Bernardo-Ontario metropolitan area
covering the Counties of Riverside and San Bernardino.
(iii) The CPI-U for the San Diego-Carlsbad metropolitan area covering
the County of San Diego.
(iv) The CPI-U for the San Francisco-Oakland-Hayward metropolitan
area covering the Counties of Alameda, Contra Costa, Marin, San Francisco,
and San Mateo.
(v) Any successor metropolitan area index to any of the indexes listed
in clauses (i) to (iv), inclusive.
(B) If the United States Bureau of Labor Statistics does not publish a
CPI-U for the metropolitan area in which the property is located, the
California Consumer Price Index for All Urban Consumers for All Items
as published by the Department of Industrial Relations.
(C) On or after January 1, 2021, if the United States Bureau of Labor
Statistics publishes a CPI-U index for one or more metropolitan areas not
listed in subparagraph (A), that CPI-U index shall apply in those areas with
respect to rent increases that take effect on or after August 1 of the calendar
year in which the 12-month change in that CPI-U, as described in
subparagraph (B) of paragraph (3), is first published.
(2) “Owner” and “residential real property” shall have the same meaning
as those terms are defined in Section 1954.51.
(3) (A) “Percentage change in the cost of living” means the percentage
change, computed pursuant to subparagraph (B), in the applicable, as
determined pursuant to paragraph (1), Consumer Price Index for All Urban
Consumers for All Items.
(B) (i) For rent increases that take effect before August 1 of any calendar
year, the following shall apply:
(I) The percentage change shall be the percentage change in the amount
published for April of the immediately preceding calendar year and April
of the year before that.
(II) If there is not an amount published in April for the applicable
geographic area, the percentage change shall be the percentage change in
the amount published for March of the immediately preceding calendar year
and March of the year before that.
(ii) For rent increases that take effect on or after August 1 of any calendar
year, the following shall apply:
22 Sept. 15, 2020 Item #8 Page 36 of 71
(I) The percentage change shall be the percentage change in the amount
published for April of that calendar year and April of the immediately
preceding calendar year.
(II) If there is not an amount published in April for the applicable
geographic area, the percentage change shall be the percentage change in
the amount published for March of that calendar year and March of the
immediately preceding calendar year.
(iii) The percentage change shall be rounded to the nearest one-tenth of
1 percent.
(4) “Tenancy” means the lawful occupation of residential real property
and includes a lease or sublease.
(h) (1) This section shall apply to all rent increases subject to subdivision
(a) occurring on or after March 15, 2019.
(2) In the event that an owner has increased the rent by more than the
amount permissible under subdivision (a) between March 15, 2019, and
January 1, 2020, both of the following shall apply:
(A) The applicable rent on January 1, 2020, shall be the rent as of March
15, 2019, plus the maximum permissible increase under subdivision (a).
(B) An owner shall not be liable to the tenant for any corresponding rent
overpayment.
(3) An owner of residential real property subject to subdivision (a) who
increased the rental rate on that residential real property on or after March
15, 2019, but prior to January 1, 2020, by an amount less than the rental
rate increase permitted by subdivision (a) shall be allowed to increase the
rental rate twice, as provided in paragraph (2) of subdivision (a), within 12
months of March 15, 2019, but in no event shall that rental rate increase
exceed the maximum rental rate increase permitted by subdivision (a).
(i) Any waiver of the rights under this section shall be void as contrary
to public policy.
(j) This section shall remain in effect until January 1, 2030, and as of
that date is repealed.
(k) (1) The Legislature finds and declares that the unique circumstances
of the current housing crisis require a statewide response to address rent
gouging by establishing statewide limitations on gross rental rate increases.
(2) It is the intent of the Legislature that this section should apply only
for the limited time needed to address the current statewide housing crisis,
as described in paragraph (1). This section is not intended to expand or limit
the authority of local governments to establish local policies regulating rents
consistent with Chapter 2.7 (commencing with Section 1954.50), nor is it
a statement regarding the appropriate, allowable rental rate increase when
a local government adopts a policy regulating rent that is otherwise consistent
with Chapter 2.7 (commencing with Section 1954.50).
(3) Nothing in this section authorizes a local government to establish
limitations on any rental rate increases not otherwise permissible under
Chapter 2.7 (commencing with Section 1954.50), or affects the existing
authority of a local government to adopt or maintain rent controls or price
controls consistent with that chapter.
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SEC. 10. Section 1947.13 of the Civil Code is amended to read:
1947.13. (a) Notwithstanding subdivision (a) of Section 1947.12, upon
the expiration of rental restrictions, the following shall apply:
(1) The owner of an assisted housing development who demonstrates,
under penalty of perjury, compliance with all applicable provisions of
Sections 65863.10, 65863.11, and 65863.13 of the Government Code and
any other applicable federal, state, or local law or regulation may establish
the initial unassisted rental rate for units in the applicable housing
development. Any subsequent rent increase in the development shall be
subject to Section 1947.12.
(2) The owner of a deed-restricted affordable housing unit or an affordable
housing unit subject to a regulatory restriction contained in an agreement
with a government agency limiting rental rates that is not within an assisted
housing development may, subject to any applicable federal, state, or local
law or regulation, establish the initial rental rate for the unit upon the
expiration of the restriction. Any subsequent rent increase for the unit shall
be subject to Section 1947.12.
(b) For purposes of this section:
(1) “Assisted housing development” has the same meaning as defined
in paragraph (3) of subdivision (a) of Section 65863.10 of the Government
Code.
(2) “Expiration of rental restrictions” has the same meaning as defined
in paragraph (5) of subdivision (a) of Section 65863.10 of the Government
Code.
(c) This section shall remain in effect until January 1, 2030, and as of
that date is repealed.
(d) Any waiver of the rights under this section shall be void as contrary
to public policy.
(e) This section shall not be construed to preempt any local law.
SEC. 11. Section 2924.15 of the Civil Code is amended to read:
2924.15. (a) Unless otherwise provided, paragraph (5) of subdivision
(a) of Section 2924, and Sections 2923.5, 2923.55, 2923.6, 2923.7, 2924.9,
2924.10, 2924.11, and 2924.18 shall apply only to a first lien mortgage or
deed of trust that meets either of the following criteria:
(1) (A) The first lien mortgage or deed of trust is secured by
owner-occupied residential real property containing no more than four
dwelling units.
(B) For purposes of this paragraph, “owner-occupied” means that the
property is the principal residence of the borrower and is security for a loan
made for personal, family, or household purposes.
(2) The first lien mortgage or deed of trust is secured by residential real
property that is occupied by a tenant, contains no more than four dwelling
units, and meets all of the conditions described in subparagraph (B).
(A) For the purposes of this paragraph:
(i) “Applicable lease” means a lease entered pursuant to an arm’s length
transaction before, and in effect on, March 4, 2020.
24 Sept. 15, 2020 Item #8 Page 38 of 71
(ii) “Arm’s length transaction” means a lease entered into in good faith
and for valuable consideration that reflects the fair market value in the open
market between informed and willing parties.
(iii) “Occupied by a tenant” means that the property is the principal
residence of a tenant.
(B) To meet the conditions of this subdivision, a first lien mortgage or
deed of trust shall have all of the following characteristics:
(i) The property is owned by an individual who owns no more than three
residential real properties, or by one or more individuals who together own
no more than three residential real properties, each of which contains no
more than four dwelling units.
(ii) The property is occupied by a tenant pursuant to an applicable lease.
(iii) A tenant occupying the property is unable to pay rent due to a
reduction in income resulting from the novel coronavirus.
(C) Relief shall be available pursuant to subdivision (a) of Section 2924
and Sections 2923.5, 2923.55, 2923.6, 2923.7, 2924.9, 2924.10, 2924.11,
and 2924.18 for so long as the property remains occupied by a tenant
pursuant to a lease entered in an arm’s length transaction.
(b) This section shall remain in effect until January 1, 2023, and as of
that date is repealed.
SEC. 12. Section 2924.15 is added to the Civil Code, to read:
2924.15. (a) Unless otherwise provided, paragraph (5) of subdivision
(a) of Section 2924 and Sections 2923.5, 2923.55, 2923.6, 2923.7, 2924.9,
2924.10, 2924.11, and 2924.18 shall apply only to a first lien mortgage or
deed of trust that is secured by owner-occupied residential real property
containing no more than four dwelling units.
(b) As used in this section, “owner-occupied” means that the property is
the principal residence of the borrower and is security for a loan made for
personal, family, or household purposes.
(c) This section shall become operative on January 1, 2023.
SEC. 13. Title 19 (commencing with Section 3273.01) is added to Part
4 of Division 3 of the Civil Code, to read:
TITLE 19. COVID-19 SMALL LANDLORD AND HOMEOWNER
RELIEF ACT
Chapter 1. Title and Definitions
3273.01. This title is known, and may be cited, as the “COVID-19 Small
Landlord and Homeowner Relief Act of 2020.”
3273.1. For purposes of this title:
(a) (1) “Borrower” means any of the following:
(A) A natural person who is a mortgagor or trustor or a confirmed
successor in interest, as defined in Section 1024.31 of Title 12 of the Code
of Federal Regulations.
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(B) An entity other than a natural person only if the secured property
contains no more than four dwelling units and is currently occupied by one
or more residential tenants.
(2) “Borrower” shall not include an individual who has surrendered the
secured property as evidenced by either a letter confirming the surrender or
delivery of the keys to the property to the mortgagee, trustee, beneficiary,
or authorized agent.
(3) Unless the property securing the mortgage contains one or more
deed-restricted affordable housing units or one or more affordable housing
units subject to a regulatory restriction limiting rental rates that is contained
in an agreement with a government agency, the following mortgagors shall
not be considered a “borrower”:
(A) A real estate investment trust, as defined in Section 856 of the Internal
Revenue Code.
(B) A corporation.
(C) A limited liability company in which at least one member is a
corporation.
(4) “Borrower” shall also mean a person who holds a power of attorney
for a borrower described in paragraph (1).
(b) “Effective time period” means the time period between the operational
date of this title and April 1, 2021.
(c) (1) “Mortgage servicer” or “lienholder” means a person or entity
who directly services a loan or who is responsible for interacting with the
borrower, managing the loan account on a daily basis, including collecting
and crediting periodic loan payments, managing any escrow account, or
enforcing the note and security instrument, either as the current owner of
the promissory note or as the current owner’s authorized agent.
(2) “Mortgage servicer” or “lienholder” also means a subservicing agent
to a master servicer by contract.
(3) “Mortgage servicer” shall not include a trustee, or a trustee’s
authorized agent, acting under a power of sale pursuant to a deed of trust.
3273.2. (a) The provisions of this title apply to a mortgage or deed of
trust that is secured by residential property containing no more than four
dwelling units, including individual units of condominiums or cooperatives,
and that was outstanding as of the enactment date of this title.
(b) The provisions of this title shall apply to a depository institution
chartered under federal or state law, a person covered by the licensing
requirements of Division 9 (commencing with Section 22000) or Division
20 (commencing with Section 50000) of the Financial Code, or a person
licensed pursuant to Part 1 (commencing with Section 10000) of Division
4 of the Business and Professions Code.
Chapter 2. Mortgages
3273.10. (a) If a mortgage servicer denies a forbearance request made
during the effective time period, the mortgage servicer shall provide written
26 Sept. 15, 2020 Item #8 Page 40 of 71
notice to the borrower that sets forth the specific reason or reasons that
forbearance was not provided, if both of the following conditions are met:
(1) The borrower was current on payment as of February 1, 2020.
(2) The borrower is experiencing a financial hardship that prevents the
borrower from making timely payments on the mortgage obligation due,
directly or indirectly, to the COVID-19 emergency.
(b) If the written notice in subdivision (a) cites any defect in the
borrower’s request, including an incomplete application or missing
information, that is curable, the mortgage servicer shall do all of the
following:
(1) Specifically identify any curable defect in the written notice.
(2) Provide 21 days from the mailing date of the written notice for the
borrower to cure any identified defect.
(3) Accept receipt of the borrower’s revised request for forbearance
before the aforementioned 21-day period lapses.
(4) Respond to the borrower’s revised request within five business days
of receipt of the revised request.
(c) If a mortgage servicer denies a forbearance request, the declaration
required by subdivision (b) of Section 2923.5 shall include the written notice
together with a statement as to whether forbearance was or was not
subsequently provided.
(d) A mortgage servicer, mortgagee, or beneficiary of the deed of trust,
or an authorized agent thereof, who, with respect to a borrower of a federally
backed mortgage, complies with the relevant provisions regarding
forbearance in Section 4022 of the federal Coronavirus Aid, Relief, and
Economic Security Act (the CARES Act) (Public Law 116-136), including
any amendments or revisions to those provisions, shall be deemed to be in
compliance with this section. A mortgage servicer of a nonfederally backed
mortgage that provides forbearance that is consistent with the requirements
of the CARES Act for federally backed mortgages shall be deemed to be
in compliance with this section.
3273.11. (a) A mortgage servicer shall comply with applicable federal
guidance regarding borrower options following a COVID-19 related
forbearance.
(b) Any mortgage servicer, mortgagee, or beneficiary of the deed of trust,
or authorized agent thereof, who, with respect to a borrower of a federally
backed loan, complies with the guidance to mortgagees regarding borrower
options following a COVID-19-related forbearance provided by the Federal
National Mortgage Association (Fannie Mae), the Federal Home Loan
Mortgage Corporation (Freddie Mac), the Federal Housing Administration
of the United States Department of Housing and Urban Development, the
United States Department of Veterans Affairs, or the Rural Development
division of the United States Department of Agriculture, including any
amendments, updates, or revisions to that guidance, shall be deemed to be
in compliance with this section.
(c) With respect to a nonfederally backed loan, any mortgage servicer,
mortgagee, or beneficiary of the deed of trust, or authorized agent thereof,
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Sept. 15, 2020 Item #8 Page 41 of 71
who, regarding borrower options following a COVID-19 related forbearance,
reviews a customer for a solution that is consistent with the guidance to
servicers, mortgagees, or beneficiaries provided by Fannie Mae, Freddie
Mac, the Federal Housing Administration of the Department of Housing
and Urban Development, the Department of Veterans Affairs, or the Rural
Development division of the Department of Agriculture, including any
amendments, updates or revisions to such guidance, shall be deemed to be
in compliance with this section.
3273.12. It is the intent of the Legislature that a mortgage servicer offer
a borrower a postforbearance loss mitigation option that is consistent with
the mortgage servicer’s contractual or other authority.
3273.14. A mortgage servicer shall communicate about forbearance and
postforbearance options described in this article in the borrower’s preferred
language when the mortgage servicer regularly communicates with any
borrower in that language.
3273.15. (a) A borrower who is harmed by a material violation of this
title may bring an action to obtain injunctive relief, damages, restitution,
and any other remedy to redress the violation.
(b) A court may award a prevailing borrower reasonable attorney’s fees
and costs in any action based on any violation of this title in which injunctive
relief against a sale, including a temporary restraining order, is granted. A
court may award a prevailing borrower reasonable attorney’s fees and costs
in an action for a violation of this article in which relief is granted but
injunctive relief against a sale is not granted.
(c) The rights, remedies, and procedures provided to borrowers by this
section are in addition to and independent of any other rights, remedies, or
procedures under any other law. This section shall not be construed to alter,
limit, or negate any other rights, remedies, or procedures provided to
borrowers by law.
3273.16. Any waiver by a borrower of the provisions of this article is
contrary to public policy and shall be void.
SEC. 14. Section 116.223 is added to the Code of Civil Procedure, to
read:
116.223. (a) The Legislature hereby finds and declares as follows:
(1) There is anticipated to be an unprecedented number of claims arising
out of nonpayment of residential rent that occurred between March 1, 2020,
and January 31, 2021, related to the COVID-19 pandemic.
(2) These disputes are of special importance to the parties and of
significant social and economic consequence collectively as the people of
the State of California grapple with the health, economic, and social impacts
of the COVID-19 pandemic.
(3) It is essential that the parties have access to a judicial forum to resolve
these disputes expeditiously, inexpensively, and fairly.
(4) It is the intent of the Legislature that landlords of residential real
property and their tenants have the option to litigate disputes regarding rent
which is unpaid for the time period between March 1, 2020, and January
31, 2021, in the small claims court. It is the intent of the Legislature that
28 Sept. 15, 2020 Item #8 Page 42 of 71
the jurisdictional limits of the small claims court not apply to these disputes
over COVID-19 rental debt.
(b) (1) Notwithstanding paragraph (1) of subdivision (a) Section 116.220,
Section 116.221, or any other law, the small claims court has jurisdiction
in any action for recovery of COVID-19 rental debt, as defined in Section
1179.02, and any defenses thereto, regardless of the amount demanded.
(2) In an action described in paragraph (1), the court shall reduce the
damages awarded for any amount of COVID-19 rental debt sought by
payments made to the landlord to satisfy the COVID-19 rental debt,
including payments by the tenant, rental assistance programs, or another
third party pursuant to paragraph (3) of subdivision (a) of Section 1947.3
of the Civil Code.
(3) An action to recover COVID-19 rental debt, as defined in Section
1179.02, brought pursuant to this subdivision shall not be commenced before
March 1, 2021.
(c) Any claim for recovery of COVID-19 rental debt, as defined in Section
1179.02, shall not be subject to Section 116.231, notwithstanding the fact
that a landlord of residential rental property may have brought two or more
small claims actions in which the amount demanded exceeded two thousand
five hundred dollars ($2,500) in any calendar year.
(d) This section shall remain in effect until February 1, 2025, and as of
that date is repealed.
SEC. 15. Section 1161 of the Code of Civil Procedure is amended to
read:
1161. A tenant of real property, for a term less than life, or the executor
or administrator of the tenant’s estate heretofore qualified and now acting
or hereafter to be qualified and act, is guilty of unlawful detainer:
1. When the tenant continues in possession, in person or by subtenant,
of the property, or any part thereof, after the expiration of the term for which
it is let to the tenant; provided the expiration is of a nondefault nature
however brought about without the permission of the landlord, or the
successor in estate of the landlord, if applicable; including the case where
the person to be removed became the occupant of the premises as a servant,
employee, agent, or licensee and the relation of master and servant, or
employer and employee, or principal and agent, or licensor and licensee,
has been lawfully terminated or the time fixed for occupancy by the
agreement between the parties has expired; but nothing in this subdivision
shall be construed as preventing the removal of the occupant in any other
lawful manner; but in case of a tenancy at will, it shall first be terminated
by notice, as prescribed in the Civil Code.
2. When the tenant continues in possession, in person or by subtenant,
without the permission of the landlord, or the successor in estate of the
landlord, if applicable, after default in the payment of rent, pursuant to the
lease or agreement under which the property is held, and three days’ notice,
excluding Saturdays and Sundays and other judicial holidays, in writing,
requiring its payment, stating the amount that is due, the name, telephone
number, and address of the person to whom the rent payment shall be made,
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Sept. 15, 2020 Item #8 Page 43 of 71
and, if payment may be made personally, the usual days and hours that
person will be available to receive the payment (provided that, if the address
does not allow for personal delivery, then it shall be conclusively presumed
that upon the mailing of any rent or notice to the owner by the tenant to the
name and address provided, the notice or rent is deemed received by the
owner on the date posted, if the tenant can show proof of mailing to the
name and address provided by the owner), or the number of an account in
a financial institution into which the rental payment may be made, and the
name and street address of the institution (provided that the institution is
located within five miles of the rental property), or if an electronic funds
transfer procedure has been previously established, that payment may be
made pursuant to that procedure, or possession of the property, shall have
been served upon the tenant and if there is a subtenant in actual occupation
of the premises, also upon the subtenant.
The notice may be served at any time within one year after the rent
becomes due. In all cases of tenancy upon agricultural lands, if the tenant
has held over and retained possession for more than 60 days after the
expiration of the term without any demand of possession or notice to quit
by the landlord or the successor in estate of the landlord, if applicable, the
tenant shall be deemed to be holding by permission of the landlord or
successor in estate of the landlord, if applicable, and shall be entitled to hold
under the terms of the lease for another full year, and shall not be guilty of
an unlawful detainer during that year, and the holding over for that period
shall be taken and construed as a consent on the part of a tenant to hold for
another year.
An unlawful detainer action under this paragraph shall be subject to the
COVID-19 Tenant Relief Act of 2020 (Chapter 5 (commencing with Section
1179.01)) if the default in the payment of rent is based upon the COVID-19
rental debt.
3. When the tenant continues in possession, in person or by subtenant,
after a neglect or failure to perform other conditions or covenants of the
lease or agreement under which the property is held, including any covenant
not to assign or sublet, than the one for the payment of rent, and three days’
notice, excluding Saturdays and Sundays and other judicial holidays, in
writing, requiring the performance of those conditions or covenants, or the
possession of the property, shall have been served upon the tenant, and if
there is a subtenant in actual occupation of the premises, also, upon the
subtenant. Within three days, excluding Saturdays and Sundays and other
judicial holidays, after the service of the notice, the tenant, or any subtenant
in actual occupation of the premises, or any mortgagee of the term, or other
person interested in its continuance, may perform the conditions or covenants
of the lease or pay the stipulated rent, as the case may be, and thereby save
the lease from forfeiture; provided, if the conditions and covenants of the
lease, violated by the lessee, cannot afterward be performed, then no notice,
as last prescribed herein, need be given to the lessee or the subtenant,
demanding the performance of the violated conditions or covenants of the
lease.
30 Sept. 15, 2020 Item #8 Page 44 of 71
A tenant may take proceedings, similar to those prescribed in this chapter,
to obtain possession of the premises let to a subtenant or held by a servant,
employee, agent, or licensee, in case of that person’s unlawful detention of
the premises underlet to or held by that person.
An unlawful detainer action under this paragraph shall be subject to the
COVID-19 Tenant Relief Act of 2020 (Chapter 5 (commencing with Section
1179.01)) if the neglect or failure to perform other conditions or covenants
of the lease or agreement is based upon the COVID-19 rental debt.
4. Any tenant, subtenant, or executor or administrator of that person’s
estate heretofore qualified and now acting, or hereafter to be qualified and
act, assigning or subletting or committing waste upon the demised premises,
contrary to the conditions or covenants of the lease, or maintaining,
committing, or permitting the maintenance or commission of a nuisance
upon the demised premises or using the premises for an unlawful purpose,
thereby terminates the lease, and the landlord, or the landlord’s successor
in estate, shall upon service of three days’ notice to quit upon the person or
persons in possession, be entitled to restitution of possession of the demised
premises under this chapter. For purposes of this subdivision, a person who
commits or maintains a public nuisance as described in Section 3482.8 of
the Civil Code, or who commits an offense described in subdivision (c) of
Section 3485 of the Civil Code, or subdivision (c) of Section 3486 of the
Civil Code, or uses the premises to further the purpose of that offense shall
be deemed to have committed a nuisance upon the premises.
5. When the tenant gives written notice as provided in Section 1946 of
the Civil Code of the tenant’s intention to terminate the hiring of the real
property, or makes a written offer to surrender which is accepted in writing
by the landlord, but fails to deliver possession at the time specified in that
written notice, without the permission of the landlord, or the successor in
estate of the landlord, if applicable.
6. As used in this section:
“COVID-19 rental debt” has the same meaning as defined in Section
1179.02.
“Tenant” includes any person who hires real property except those persons
whose occupancy is described in subdivision (b) of Section 1940 of the
Civil Code.
7. This section shall remain in effect until February 1, 2025, and as of
that date is repealed.
SEC. 16. Section 1161 is added to the Code of Civil Procedure, to read:
1161. A tenant of real property, for a term less than life, or the executor
or administrator of the tenant’s estate heretofore qualified and now acting
or hereafter to be qualified and act, is guilty of unlawful detainer:
1. When the tenant continues in possession, in person or by subtenant,
of the property, or any part thereof, after the expiration of the term for which
it is let to the tenant; provided the expiration is of a nondefault nature
however brought about without the permission of the landlord, or the
successor in estate of the landlord, if applicable; including the case where
the person to be removed became the occupant of the premises as a servant,
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Sept. 15, 2020 Item #8 Page 45 of 71
employee, agent, or licensee and the relation of master and servant, or
employer and employee, or principal and agent, or licensor and licensee,
has been lawfully terminated or the time fixed for occupancy by the
agreement between the parties has expired; but nothing in this subdivision
shall be construed as preventing the removal of the occupant in any other
lawful manner; but in case of a tenancy at will, it shall first be terminated
by notice, as prescribed in the Civil Code.
2. When the tenant continues in possession, in person or by subtenant,
without the permission of the landlord, or the successor in estate of the
landlord, if applicable, after default in the payment of rent, pursuant to the
lease or agreement under which the property is held, and three days’ notice,
excluding Saturdays and Sundays and other judicial holidays, in writing,
requiring its payment, stating the amount that is due, the name, telephone
number, and address of the person to whom the rent payment shall be made,
and, if payment may be made personally, the usual days and hours that
person will be available to receive the payment (provided that, if the address
does not allow for personal delivery, then it shall be conclusively presumed
that upon the mailing of any rent or notice to the owner by the tenant to the
name and address provided, the notice or rent is deemed received by the
owner on the date posted, if the tenant can show proof of mailing to the
name and address provided by the owner), or the number of an account in
a financial institution into which the rental payment may be made, and the
name and street address of the institution (provided that the institution is
located within five miles of the rental property), or if an electronic funds
transfer procedure has been previously established, that payment may be
made pursuant to that procedure, or possession of the property, shall have
been served upon the tenant and if there is a subtenant in actual occupation
of the premises, also upon the subtenant.
The notice may be served at any time within one year after the rent
becomes due. In all cases of tenancy upon agricultural lands, if the tenant
has held over and retained possession for more than 60 days after the
expiration of the term without any demand of possession or notice to quit
by the landlord or the successor in estate of the landlord, if applicable, the
tenant shall be deemed to be holding by permission of the landlord or
successor in estate of the landlord, if applicable, and shall be entitled to hold
under the terms of the lease for another full year, and shall not be guilty of
an unlawful detainer during that year, and the holding over for that period
shall be taken and construed as a consent on the part of a tenant to hold for
another year.
3. When the tenant continues in possession, in person or by subtenant,
after a neglect or failure to perform other conditions or covenants of the
lease or agreement under which the property is held, including any covenant
not to assign or sublet, than the one for the payment of rent, and three days’
notice, excluding Saturdays and Sundays and other judicial holidays, in
writing, requiring the performance of those conditions or covenants, or the
possession of the property, shall have been served upon the tenant, and if
there is a subtenant in actual occupation of the premises, also, upon the
32 Sept. 15, 2020 Item #8 Page 46 of 71
subtenant. Within three days, excluding Saturdays and Sundays and other
judicial holidays, after the service of the notice, the tenant, or any subtenant
in actual occupation of the premises, or any mortgagee of the term, or other
person interested in its continuance, may perform the conditions or covenants
of the lease or pay the stipulated rent, as the case may be, and thereby save
the lease from forfeiture; provided, if the conditions and covenants of the
lease, violated by the lessee, cannot afterward be performed, then no notice,
as last prescribed herein, need be given to the lessee or the subtenant,
demanding the performance of the violated conditions or covenants of the
lease.
A tenant may take proceedings, similar to those prescribed in this chapter,
to obtain possession of the premises let to a subtenant or held by a servant,
employee, agent, or licensee, in case of that person’s unlawful detention of
the premises underlet to or held by that person.
4. Any tenant, subtenant, or executor or administrator of that person’s
estate heretofore qualified and now acting, or hereafter to be qualified and
act, assigning or subletting or committing waste upon the demised premises,
contrary to the conditions or covenants of the lease, or maintaining,
committing, or permitting the maintenance or commission of a nuisance
upon the demised premises or using the premises for an unlawful purpose,
thereby terminates the lease, and the landlord, or the landlord’s successor
in estate, shall upon service of three days’ notice to quit upon the person or
persons in possession, be entitled to restitution of possession of the demised
premises under this chapter. For purposes of this subdivision, a person who
commits or maintains a public nuisance as described in Section 3482.8 of
the Civil Code, or who commits an offense described in subdivision (c) of
Section 3485 of the Civil Code, or subdivision (c) of Section 3486 of the
Civil Code, or uses the premises to further the purpose of that offense shall
be deemed to have committed a nuisance upon the premises.
5. When the tenant gives written notice as provided in Section 1946 of
the Civil Code of the tenant’s intention to terminate the hiring of the real
property, or makes a written offer to surrender which is accepted in writing
by the landlord, but fails to deliver possession at the time specified in that
written notice, without the permission of the landlord, or the successor in
estate of the landlord, if applicable.
6. As used in this section, “tenant” includes any person who hires real
property except those persons whose occupancy is described in subdivision
(b) of Section 1940 of the Civil Code.
7. This section shall become operative on February 1, 2025.
SEC. 17. Section 1161.2 of the Code of Civil Procedure is amended to
read:
1161.2. (a) (1) The clerk shall allow access to limited civil case records
filed under this chapter, including the court file, index, and register of
actions, only as follows:
(A) To a party to the action, including a party’s attorney.
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Sept. 15, 2020 Item #8 Page 47 of 71
(B) To a person who provides the clerk with the names of at least one
plaintiff and one defendant and the address of the premises, including the
apartment or unit number, if any.
(C) To a resident of the premises who provides the clerk with the name
of one of the parties or the case number and shows proof of residency.
(D) To a person by order of the court, which may be granted ex parte,
on a showing of good cause.
(E) Except as provided in subparagraph (G), to any person by order of
the court if judgment is entered for the plaintiff after trial more than 60 days
since the filing of the complaint. The court shall issue the order upon issuing
judgment for the plaintiff.
(F) Except as provided in subparagraph (G), to any other person 60 days
after the complaint has been filed if the plaintiff prevails in the action within
60 days of the filing of the complaint, in which case the clerk shall allow
access to any court records in the action. If a default or default judgment is
set aside more than 60 days after the complaint has been filed, this section
shall apply as if the complaint had been filed on the date the default or
default judgment is set aside.
(G) (i) In the case of a complaint involving residential property based
on Section 1161a as indicated in the caption of the complaint, as required
in subdivision (c) of Section 1166, to any other person, if 60 days have
elapsed since the complaint was filed with the court, and, as of that date,
judgment against all defendants has been entered for the plaintiff, after a
trial.
(ii) Subparagraphs (E) and (F) shall not apply if the plaintiff filed the
action between March 4, 2020, and January 31, 2021, and the action is based
on an alleged default in the payment of rent.
(2) This section shall not be construed to prohibit the court from issuing
an order that bars access to the court record in an action filed under this
chapter if the parties to the action so stipulate.
(b) (1) For purposes of this section, “good cause” includes, but is not
limited to, both of the following:
(A) The gathering of newsworthy facts by a person described in Section
1070 of the Evidence Code.
(B) The gathering of evidence by a party to an unlawful detainer action
solely for the purpose of making a request for judicial notice pursuant to
subdivision (d) of Section 452 of the Evidence Code.
(2) It is the intent of the Legislature that a simple procedure be established
to request the ex parte order described in subparagraph (D) of paragraph
(1) of subdivision (a).
(c) Upon the filing of a case so restricted, the court clerk shall mail notice
to each defendant named in the action. The notice shall be mailed to the
address provided in the complaint. The notice shall contain a statement that
an unlawful detainer complaint (eviction action) has been filed naming that
party as a defendant, and that access to the court file will be delayed for 60
days except to a party, an attorney for one of the parties, or any other person
who (1) provides to the clerk the names of at least one plaintiff and one
34 Sept. 15, 2020 Item #8 Page 48 of 71
defendant in the action and provides to the clerk the address, including any
applicable apartment, unit, or space number, of the subject premises, or (2)
provides to the clerk the name of one of the parties in the action or the case
number and can establish through proper identification that the person lives
at the subject premises. The notice shall also contain a statement that access
to the court index, register of actions, or other records is not permitted until
60 days after the complaint is filed, except pursuant to an order upon a
showing of good cause for access. The notice shall contain on its face the
following information:
(1) The name and telephone number of the county bar association.
(2) The name and telephone number of any entity that requests inclusion
on the notice and demonstrates to the satisfaction of the court that it has
been certified by the State Bar of California as a lawyer referral service and
maintains a panel of attorneys qualified in the practice of landlord-tenant
law pursuant to the minimum standards for a lawyer referral service
established by the State Bar of California and Section 6155 of the Business
and Professions Code.
(3) The following statement:
“The State Bar of California certifies lawyer referral services in California
and publishes a list of certified lawyer referral services organized by county.
To locate a lawyer referral service in your county, go to the State Bar’s
internet website at www.calbar.ca.gov or call 1-866-442-2529.”
(4) The name and telephone number of an office or offices funded by
the federal Legal Services Corporation or qualified legal services projects
that receive funds distributed pursuant to Section 6216 of the Business and
Professions Code that provide legal services to low-income persons in the
county in which the action is filed. The notice shall state that these telephone
numbers may be called for legal advice regarding the case. The notice shall
be issued between 24 and 48 hours of the filing of the complaint, excluding
weekends and holidays. One copy of the notice shall be addressed to “all
occupants” and mailed separately to the subject premises. The notice shall
not constitute service of the summons and complaint.
(d) Notwithstanding any other law, the court shall charge an additional
fee of fifteen dollars ($15) for filing a first appearance by the plaintiff. This
fee shall be added to the uniform filing fee for actions filed under this
chapter.
(e) This section does not apply to a case that seeks to terminate a
mobilehome park tenancy if the statement of the character of the proceeding
in the caption of the complaint clearly indicates that the complaint seeks
termination of a mobilehome park tenancy.
(f) This section does not alter any provision of the Evidence Code.
(g) This section shall remain in effect until February 1, 2021, and as of
that date is repealed.
SEC. 18. Section 1161.2 is added to the Code of Civil Procedure, to
read:
35
Sept. 15, 2020 Item #8 Page 49 of 71
1161.2. (a) (1) The clerk shall allow access to limited civil case records
filed under this chapter, including the court file, index, and register of
actions, only as follows:
(A) To a party to the action, including a party’s attorney.
(B) To a person who provides the clerk with the names of at least one
plaintiff and one defendant and the address of the premises, including the
apartment or unit number, if any.
(C) To a resident of the premises who provides the clerk with the name
of one of the parties or the case number and shows proof of residency.
(D) To a person by order of the court, which may be granted ex parte,
on a showing of good cause.
(E) To any person by order of the court if judgment is entered for the
plaintiff after trial more than 60 days since the filing of the complaint. The
court shall issue the order upon issuing judgment for the plaintiff.
(F) Except as provided in subparagraph (G), to any other person 60 days
after the complaint has been filed if the plaintiff prevails in the action within
60 days of the filing of the complaint, in which case the clerk shall allow
access to any court records in the action. If a default or default judgment is
set aside more than 60 days after the complaint has been filed, this section
shall apply as if the complaint had been filed on the date the default or
default judgment is set aside.
(G) In the case of a complaint involving residential property based on
Section 1161a as indicated in the caption of the complaint, as required in
subdivision (c) of Section 1166, to any other person, if 60 days have elapsed
since the complaint was filed with the court, and, as of that date, judgment
against all defendants has been entered for the plaintiff, after a trial.
(2) This section shall not be construed to prohibit the court from issuing
an order that bars access to the court record in an action filed under this
chapter if the parties to the action so stipulate.
(b) (1) For purposes of this section, “good cause” includes, but is not
limited to, both of the following:
(A) The gathering of newsworthy facts by a person described in Section
1070 of the Evidence Code.
(B) The gathering of evidence by a party to an unlawful detainer action
solely for the purpose of making a request for judicial notice pursuant to
subdivision (d) of Section 452 of the Evidence Code.
(2) It is the intent of the Legislature that a simple procedure be established
to request the ex parte order described in subparagraph (D) of paragraph
(1) of subdivision (a).
(c) Upon the filing of a case so restricted, the court clerk shall mail notice
to each defendant named in the action. The notice shall be mailed to the
address provided in the complaint. The notice shall contain a statement that
an unlawful detainer complaint (eviction action) has been filed naming that
party as a defendant, and that access to the court file will be delayed for 60
days except to a party, an attorney for one of the parties, or any other person
who (1) provides to the clerk the names of at least one plaintiff and one
defendant in the action and provides to the clerk the address, including any
36 Sept. 15, 2020 Item #8 Page 50 of 71
applicable apartment, unit, or space number, of the subject premises, or (2)
provides to the clerk the name of one of the parties in the action or the case
number and can establish through proper identification that the person lives
at the subject premises. The notice shall also contain a statement that access
to the court index, register of actions, or other records is not permitted until
60 days after the complaint is filed, except pursuant to an order upon a
showing of good cause for access. The notice shall contain on its face the
following information:
(1) The name and telephone number of the county bar association.
(2) The name and telephone number of any entity that requests inclusion
on the notice and demonstrates to the satisfaction of the court that it has
been certified by the State Bar of California as a lawyer referral service and
maintains a panel of attorneys qualified in the practice of landlord-tenant
law pursuant to the minimum standards for a lawyer referral service
established by the State Bar of California and Section 6155 of the Business
and Professions Code.
(3) The following statement:
“The State Bar of California certifies lawyer referral services in California
and publishes a list of certified lawyer referral services organized by county.
To locate a lawyer referral service in your county, go to the State Bar’s
internet website at www.calbar.ca.gov or call 1-866-442-2529.”
(4) The name and telephone number of an office or offices funded by
the federal Legal Services Corporation or qualified legal services projects
that receive funds distributed pursuant to Section 6216 of the Business and
Professions Code that provide legal services to low-income persons in the
county in which the action is filed. The notice shall state that these telephone
numbers may be called for legal advice regarding the case. The notice shall
be issued between 24 and 48 hours of the filing of the complaint, excluding
weekends and holidays. One copy of the notice shall be addressed to “all
occupants” and mailed separately to the subject premises. The notice shall
not constitute service of the summons and complaint.
(d) Notwithstanding any other law, the court shall charge an additional
fee of fifteen dollars ($15) for filing a first appearance by the plaintiff. This
fee shall be added to the uniform filing fee for actions filed under this
chapter.
(e) This section does not apply to a case that seeks to terminate a
mobilehome park tenancy if the statement of the character of the proceeding
in the caption of the complaint clearly indicates that the complaint seeks
termination of a mobilehome park tenancy.
(f) This section does not alter any provision of the Evidence Code.
(g) This section shall become operative on February 1, 2021.
SEC. 19. Section 1161.2.5 is added to the Code of Civil Procedure, to
read:
1161.2.5. (a) (1) Except as provided in Section 1161.2, the clerk shall
allow access to civil case records for actions seeking recovery of COVID-19
rental debt, as defined in Section 1179.02, including the court file, index,
and register of actions, only as follows:
37
Sept. 15, 2020 Item #8 Page 51 of 71
(A) To a party to the action, including a party’s attorney.
(B) To a person who provides the clerk with the names of at least one
plaintiff and one defendant.
(C) To a resident of the premises for which the COVID-19 rental debt
is owed who provides the clerk with the name of one of the parties or the
case number and shows proof of residency.
(D) To a person by order of the court, which may be granted ex parte,
on a showing of good cause.
(2) To give the court notice that access to the records in an action is
limited, any complaint or responsive pleading in a case subject to this section
shall include on either the first page of the pleading or a cover page, the
phrase “ACTION FOR RECOVERY OF COVID-19 RENTAL DEBT AS
DEFINED UNDER SECTION 1179.02” in bold, capital letters, in 12 point
or larger font.
(b) (1) For purposes of this section, “good cause” includes, but is not
limited to, both of the following:
(A) The gathering of newsworthy facts by a person described in Section
1070 of the Evidence Code.
(B) The gathering of evidence by a party to a civil action solely for the
purpose of making a request for judicial notice pursuant to subdivision (d)
of Section 452 of the Evidence Code.
(2) It is the intent of the Legislature that a simple procedure be established
to request the ex parte order described in subparagraph (D) of paragraph
(1) of subdivision (a).
(c) This section does not alter any provision of the Evidence Code.
(d) This section shall remain in effect until February 1, 2021, and as of
that date is repealed.
SEC. 20. Chapter 5 (commencing with Section 1179.01) is added to
Title 3 of Part 3 of the Code of Civil Procedure, to read:
Chapter 5. COVID-19 Tenant Relief Act of 2020
1179.01. This chapter is known, and may be cited, as the COVID-19
Tenant Relief Act of 2020.
1179.01.5. (a) It is the intent of the Legislature that the Judicial Council
and the courts have adequate time to prepare to implement the new
procedures resulting from this chapter, including educating and training
judicial officers and staff.
(b) Notwithstanding any other law, before October 5, 2020, a court shall
not do any of the following:
(1) Issue a summons on a complaint for unlawful detainer in any action
that seeks possession of residential real property and that is based, in whole
or in part, on nonpayment of rent or other charges.
(2) Enter a default or a default judgment for restitution in an unlawful
detainer action that seeks possession of residential real property and that is
based, in whole or in part, on nonpayment of rent or other charges.
38 Sept. 15, 2020 Item #8 Page 52 of 71
(c) (1) A plaintiff in an unlawful detainer action shall file a cover sheet
in the form specified in paragraph (2) that indicates both of the following:
(A) Whether the action seeks possession of residential real property.
(B) If the action seeks possession of residential real property, whether
the action is based, in whole or part, on an alleged default in payment of
rent or other charges.
(2) The cover sheet specified in paragraph (1) shall be in the following
form:
“UNLAWFUL DETAINER SUPPLEMENTAL COVER SHEET
1. This action seeks possession of real property that is:
a. [ ] Residential
b. [ ] Commercial
2. (Complete only if paragraph 1(a) is checked) This action is based, in
whole or in part, on an alleged default in payment of rent or other charges.
a. [ ] Yes
b. [ ] No
Date:__________________
_____________________________
_______________________________
Type Or Print Name Signature Of Party Or Attorney For Party”
(3) The cover sheet required by this subdivision shall be in addition to
any civil case cover sheet or other form required by law, the California
Rules of Court, or a local court rule.
(4) The Judicial Council may develop a form for mandatory use that
includes the information in paragraph (2).
(d) This section does not prevent a court from issuing a summons or
entering default in an unlawful detainer action that seeks possession of
residential real property and that is not based, in whole or in part, on
nonpayment of rent or other charges.
1179.02. For purposes of this chapter:
(a) “Covered time period” means the time period between March 1, 2020,
and January 31, 2021.
(b) “COVID-19-related financial distress” means any of the following:
(1) Loss of income caused by the COVID-19 pandemic.
(2) Increased out-of-pocket expenses directly related to performing
essential work during the COVID-19 pandemic.
(3) Increased expenses directly related to the health impact of the
COVID-19 pandemic.
(4) Childcare responsibilities or responsibilities to care for an elderly,
disabled, or sick family member directly related to the COVID-19 pandemic
that limit a tenant’s ability to earn income.
(5) Increased costs for childcare or attending to an elderly, disabled, or
sick family member directly related to the COVID-19 pandemic.
(6) Other circumstances related to the COVID-19 pandemic that have
reduced a tenant’s income or increased a tenant’s expenses.
39
Sept. 15, 2020 Item #8 Page 53 of 71
(c) “COVID-19 rental debt” means unpaid rent or any other unpaid
financial obligation of a tenant under the tenancy that came due during the
covered time period.
(d) “Declaration of COVID-19-related financial distress” means the
following written statement:
I am currently unable to pay my rent or other financial obligations under
the lease in full because of one or more of the following:
1. Loss of income caused by the COVID-19 pandemic.
2. Increased out-of-pocket expenses directly related to performing essential
work during the COVID-19 pandemic.
3. Increased expenses directly related to health impacts of the COVID-19
pandemic.
4. Childcare responsibilities or responsibilities to care for an elderly,
disabled, or sick family member directly related to the COVID-19 pandemic
that limit my ability to earn income.
5. Increased costs for childcare or attending to an elderly, disabled, or
sick family member directly related to the COVID-19 pandemic.
6. Other circumstances related to the COVID-19 pandemic that have
reduced my income or increased my expenses.
Any public assistance, including unemployment insurance, pandemic
unemployment assistance, state disability insurance (SDI), or paid family
leave, that I have received since the start of the COVID-19 pandemic does
not fully make up for my loss of income and/or increased expenses.
Signed under penalty of perjury:
Dated:
(e) “Landlord” includes all of the following or the agent of any of the
following:
(1) An owner of residential real property.
(2) An owner of a residential rental unit.
(3) An owner of a mobilehome park.
(4) An owner of a mobilehome park space or lot.
(f) “Protected time period” means the time period between March 1,
2020, and August 31, 2020.
(g) “Rental payment” means rent or any other financial obligation of a
tenant under the tenancy.
(h) “Tenant” means any natural person who hires real property except
any of the following:
(1) Tenants of commercial property, as defined in subdivision (c) of
Section 1162 of the Civil Code.
(2) Those persons whose occupancy is described in subdivision (b) of
Section 1940 of the Civil Code.
(i) “Transition time period” means the time period between September
1, 2020, and January 31, 2021.
1179.02.5. (a) For purposes of this section:
(1) (A) “High-income tenant” means a tenant with an annual household
income of 130 percent of the median income, as published by the Department
of Housing and Community Development in the Official State Income
40 Sept. 15, 2020 Item #8 Page 54 of 71
Limits for 2020, for the county in which the residential rental property is
located.
(B) For purposes of this paragraph, all lawful occupants of the residential
rental unit, including minor children, shall be considered in determining
household size.
(C) “High-income tenant” shall not include a tenant with a household
income of less than one hundred thousand dollars ($100,000).
(2) “Proof of income” means any of the following:
(A) A tax return.
(B) A W-2.
(C) A written statement from a tenant’s employer that specifies the
tenant’s income.
(D) Pay stubs.
(E) Documentation showing regular distributions from a trust, annuity,
401k, pension, or other financial instrument.
(F) Documentation of court-ordered payments, including, but not limited
to, spousal support or child support.
(G) Documentation from a government agency showing receipt of public
assistance benefits, including, but not limited to, social security,
unemployment insurance, disability insurance, or paid family leave.
(H) A written statement signed by the tenant that states the tenant’s
income, including, but not limited to, a rental application.
(b) (1) This section shall apply only if the landlord has proof of income
in the landlord’s possession before the service of the notice showing that
the tenant is a high-income tenant.
(2) This section does not do any of the following:
(A) Authorize a landlord to demand proof of income from the tenant.
(B) Require the tenant to provide proof of income for the purposes of
determining whether the tenant is a high-income tenant.
(C) (i) Entitle a landlord to obtain, or authorize a landlord to attempt to
obtain, confidential financial records from a tenant’s employer, a government
agency, financial institution, or any other source.
(ii) Confidential information described in clause (i) shall not constitute
valid proof of income unless it was lawfully obtained by the landlord with
the tenant’s consent during the tenant screening process.
(3) Paragraph (2) does not alter a party’s rights under Title 4 (commencing
with Section 2016.010), Chapter 4 (commencing with Section 708.010) of
Title 9, or any other law.
(c) A landlord may require a high-income tenant that is served a notice
pursuant to subdivision (b) or (c) of Section 1179.03 to submit, in addition
to and together with a declaration of COVID-19-related financial distress,
documentation supporting the claim that the tenant has suffered
COVID-19-related financial distress. Any form of objectively verifiable
documentation that demonstrates the COVID-19-related financial distress
the tenant has experienced is sufficient to satisfy the requirements of this
subdivision, including the proof of income, as defined in subparagraphs (A)
41
Sept. 15, 2020 Item #8 Page 55 of 71
to (G), inclusive, of paragraph (2) of subdivision (a), a letter from an
employer, or an unemployment insurance record.
(d) A high-income tenant is required to comply with the requirements
of subdivision (c) only if the landlord has included the following language
on the notice served pursuant to subdivision (b) or (c) of Section 1179.03
in at least 12-point font:
“Proof of income on file with your landlord indicates that your household
makes at least 130 percent of the median income for the county where the
rental property is located, as published by the Department of Housing and
Community Development in the Official State Income Limits for 2020. As
a result, if you claim that you are unable to pay the amount demanded by
this notice because you have suffered COVID-19-related financial distress,
you are required to submit to your landlord documentation supporting your
claim together with the completed declaration of COVID-19-related financial
distress provided with this notice. If you fail to submit this documentation
together with your declaration of COVID-19-related financial distress, and
you do not either pay the amount demanded in this notice or deliver
possession of the premises back to your landlord as required by this notice,
you will not be covered by the eviction protections enacted by the California
Legislature as a result of the COVID-19 pandemic, and your landlord can
begin eviction proceedings against you as soon as this 15-day notice expires.”
(e) A high-income tenant that fails to comply with subdivision (c) shall
not be subject to the protections of subdivision (g) of Section 1179.03.
(f) (1) A landlord shall be required to plead compliance with this section
in any unlawful detainer action based upon a notice that alleges that the
tenant is a high-income tenant. If that allegation is contested, the landlord
shall be required to submit to the court the proof of income upon which the
landlord relied at the trial or other hearing, and the tenant shall be entitled
to submit rebuttal evidence.
(2) If the court in an unlawful detainer action based upon a notice that
alleges that the tenant is a high-income tenant determines that at the time
the notice was served the landlord did not have proof of income establishing
that the tenant is a high-income tenant, the court shall award attorney’s fees
to the prevailing tenant.
1179.03. (a) (1) Any notice that demands payment of COVID-19 rental
debt served pursuant to subdivision (e) of Section 798.56 of the Civil Code
or paragraph (2) or (3) of Section 1161 shall be modified as required by this
section. A notice which does not meet the requirements of this section,
regardless of when the notice was issued, shall not be sufficient to establish
a cause of action for unlawful detainer or a basis for default judgment.
(2) Any case based solely on a notice that demands payment of
COVID-19 rental debt served pursuant to subdivision (e) of Section 798.56
of the Civil Code or paragraph (2) or (3) of Section 1161 may be dismissed
if the notice does not meet the requirements of this section, regardless of
when the notice was issued.
(3) Notwithstanding paragraphs (1) and (2), this section shall have no
effect if the landlord lawfully regained possession of the property or obtained
42 Sept. 15, 2020 Item #8 Page 56 of 71
a judgment for possession of the property before the operative date of this
section.
(b) If the notice demands payment of rent that came due during the
protected time period, as defined in Section 1179.02, the notice shall comply
with all of the following:
(1) The time period in which the tenant may pay the amount due or deliver
possession of the property shall be no shorter than 15 days, excluding
Saturdays, Sundays, and other judicial holidays.
(2) The notice shall set forth the amount of rent demanded and the date
each amount became due.
(3) The notice shall advise the tenant that the tenant cannot be evicted
for failure to comply with the notice if the tenant delivers a signed declaration
of COVID-19-related financial distress to the landlord on or before the date
that the notice to pay rent or quit or notice to perform covenants or quit
expires, by any of the methods specified in subdivision (f).
(4) The notice shall include the following text in at least 12-point font:
“NOTICE FROM THE STATE OF CALIFORNIA: If you are unable to
pay the amount demanded in this notice, and have decreased income or
increased expenses due to COVID-19, your landlord will not be able to
evict you for this missed payment if you sign and deliver the declaration
form included with your notice to your landlord within 15 days, excluding
Saturdays, Sundays, and other judicial holidays, but you will still owe this
money to your landlord. If you do not sign and deliver the declaration within
this time period, you may lose the eviction protections available to you.
You must return this form to be protected. You should keep a copy or picture
of the signed form for your records.
You will still owe this money to your landlord and can be sued for the
money, but you cannot be evicted from your home if you comply with these
requirements. You should keep careful track of what you have paid and any
amount you still owe to protect your rights and avoid future disputes. Failure
to respond to this notice may result in an unlawful detainer action (eviction)
being filed against you.
For information about legal resources that may be available to you, visit
lawhelpca.org.”
(c) If the notice demands payment of rent that came due during the
transition time period, as defined in Section 1179.02, the notice shall comply
with all of the following:
(1) The time period in which the tenant may pay the amount due or deliver
possession of the property shall be no shorter than 15 days, excluding
Saturdays, Sundays, and other judicial holidays.
(2) The notice shall set forth the amount of rent demanded and the date
each amount became due.
(3) The notice shall advise the tenant that the tenant will not be evicted
for failure to comply with the notice, except as allowed by this chapter, if
the tenant delivers a signed declaration of COVID-19-related financial
distress to the landlord on or before the date the notice to pay rent or quit
43
Sept. 15, 2020 Item #8 Page 57 of 71
or notice to perform covenants or quit expires, by any of the methods
specified in subdivision (f).
(4) The notice shall include the following text in at least 12-point font:
“NOTICE FROM THE STATE OF CALIFORNIA: If you are unable to
pay the amount demanded in this notice, and have decreased income or
increased expenses due to COVID-19, you may sign and deliver the
declaration form included with your notice to your landlord within 15 days,
excluding Saturdays, Sundays, and other judicial holidays, and your landlord
will not be able to evict you for this missed payment so long as you make
the minimum payment (see below). You will still owe this money to your
landlord. You should keep a copy or picture of the signed form for your
records.
If you provide the declaration form to your landlord as described above
AND, on or before January 31, 2021, you pay an amount that equals at least
25 percent of each rental payment that came due or will come due during
the period between September 1, 2020, and January 31, 2021, that you were
unable to pay as a result of decreased income or increased expenses due to
COVID-19, your landlord cannot evict you. Your landlord may require you
to submit a new declaration form for each rental payment that you do not
pay that comes due between September 1, 2020, and January 31, 2021.
For example, if you provided a declaration form to your landlord regarding
your decreased income or increased expenses due to COVID-19 that
prevented you from making your rental payment in September and October
of 2020, your landlord could not evict you if, on or before January 31, 2021,
you made a payment equal to 25 percent of September’s and October’s
rental payment (i.e., half a month’s rent). If you were unable to pay any of
the rental payments that came due between September 1, 2020, and January
31, 2021, and you provided your landlord with the declarations in response
to each 15-day notice your landlord sent to you during that time period,
your landlord could not evict you if, on or before January 31, 2021, you
paid your landlord an amount equal to 25 percent of all the rental payments
due from September through January (i.e., one and a quarter month’s rent).
You will still owe the full amount of the rent to your landlord, but you
cannot be evicted from your home if you comply with these requirements.
You should keep careful track of what you have paid and any amount you
still owe to protect your rights and avoid future disputes. Failure to respond
to this notice may result in an unlawful detainer action (eviction) being filed
against you.
For information about legal resources that may be available to you, visit
lawhelpca.org.”
(d) An unsigned copy of a declaration of COVID-19-related financial
distress shall accompany each notice delivered to a tenant to which
subdivision (b) or (c) is applicable. If the landlord was required, pursuant
to Section 1632 of the Civil Code, to provide a translation of the rental
contract or agreement in the language in which the contract or agreement
was negotiated, the landlord shall also provide the unsigned copy of a
declaration of COVID-19-related financial distress to the tenant in the
44 Sept. 15, 2020 Item #8 Page 58 of 71
language in which the contract or agreement was negotiated. The Department
of Real Estate shall make available an official translation of the text required
by paragraph (4) of subdivision (b) and paragraph (4) of subdivision (c) in
the languages specified in Section 1632 of the Civil Code by no later than
September 15, 2020.
(e) If a tenant owes a COVID-19 rental debt to which both subdivisions
(b) and (c) apply, the landlord shall serve two separate notices that comply
with subdivisions (b) and (c), respectively.
(f) A tenant may deliver the declaration of COVID-19-related financial
distress to the landlord by any of the following methods:
(1) In person, if the landlord indicates in the notice an address at which
the declaration may be delivered in person.
(2) By electronic transmission, if the landlord indicates an email address
in the notice to which the declaration may be delivered.
(3) Through United States mail to the address indicated by the landlord
in the notice. If the landlord does not provide an address pursuant to
subparagraph (1), then it shall be conclusively presumed that upon the
mailing of the declaration by the tenant to the address provided by the
landlord, the declaration is deemed received by the landlord on the date
posted, if the tenant can show proof of mailing to the address provided by
the landlord.
(4) Through any of the same methods that the tenant can use to deliver
the payment pursuant to the notice if delivery of the declaration by that
method is possible.
(g) Except as provided in Section 1179.02.5, the following shall apply
to a tenant who, within 15 days of service of the notice specified in
subdivision (b) or (c), excluding Saturdays, Sundays, and other judicial
holidays, demanding payment of COVID-19 rental debt delivers a declaration
of COVID-19-related financial distress to the landlord by any of the methods
provided in subdivision (f):
(1) With respect to a notice served pursuant to subdivision (b), the tenant
shall not then or thereafter be deemed to be in default with regard to that
COVID-19 rental debt for purposes of subdivision (e) of Section 798.56 of
the Civil Code or paragraphs (2) and (3) of Section 1161.
(2) With respect to a notice served pursuant to subdivision (c), the
following shall apply:
(A) Except as provided by subparagraph (B), the landlord may not initiate
an unlawful detainer action before February 1, 2021.
(B) A tenant shall not be guilty of unlawful detainer, now or in the future,
based upon nonpayment of COVID-19 rental debt that came due during the
transition period if, on or before January 31, 2021, the tenant tenders one
or more payments that, when taken together, are of an amount equal to or
not less than 25 percent of each transition period rental payment demanded
in one or more notices served pursuant to subsection (c) and for which the
tenant complied with this subdivision by timely delivering a declaration of
COVID-19-related financial distress to the landlord.
45
Sept. 15, 2020 Item #8 Page 59 of 71
(h) (1) (A) Within the time prescribed in Section 1167, a tenant shall
be permitted to file a signed declaration of COVID-19-related financial
distress with the court.
(B) If the tenant files a signed declaration of COVID-19-related financial
distress with the court pursuant to this subdivision, the court shall dismiss
the case, pursuant to paragraph (2), if the court finds, after a noticed hearing
on the matter, that the tenant’s failure to return a declaration of
COVID-19-related financial distress within the time required by subdivision
(g) was the result of mistake, inadvertence, surprise, or excusable neglect,
as those terms have been interpreted under subdivision (b) of Section 473.
(C) The noticed hearing required by this paragraph shall be held with
not less than five days’ notice and not more than 10 days’ notice, to be given
by the court, and may be held separately or in conjunction with any regularly
noticed hearing in the case, other than a trial.
(2) If the court dismisses the case pursuant to paragraph (1), that dismissal
shall be without prejudice as follows:
(A) If the case was based in whole or in part upon a notice served pursuant
to subdivision (b), the court shall dismiss any cause of action based on the
notice served pursuant to subdivision (b).
(B) Before February 1, 2021, if the case is based in whole or in part on
a notice served pursuant to subdivision (c), the court shall dismiss any cause
of action based on the notice served pursuant to subdivision (c).
(C) On or after February 1, 2021, if the case is based in whole or in part
on a notice served pursuant to subdivision (c), the court shall dismiss any
cause of action based upon the notice served pursuant to subdivision (c) if
the tenant, within five days of the court’s order to do so, makes the payment
required by subparagraph (B) of paragraph (1) of subdivision (g), provided
that if the fifth day falls on a Saturday, Sunday, or judicial holiday the last
day to pay shall be extended to the next court day.
(3) If the court dismisses the case pursuant to this subdivision, the tenant
shall not be considered the prevailing party for purposes of Section 1032,
any attorney’s fee provision appearing in contract or statute, or any other
law.
(i) Notwithstanding any other law, a notice which is served pursuant to
subdivision (b) or (c) that complies with the requirements of this chapter
and subdivision (e) of Section 798.56 of the Civil Code or paragraphs (2)
and (3) of Section 1161, as applicable, need not include specific language
required by any ordinance, resolution, regulation, or administrative action
adopted by a city, county, or city and county.
1179.03.5. (a) Before February 1, 2021, a court may not find a tenant
guilty of an unlawful detainer unless it finds that one of the following applies:
(1) The tenant was guilty of the unlawful detainer before March 1, 2020.
(2) In response to service of a notice demanding payment of COVID-19
rental debt pursuant to subdivision (e) of Section 798.56 of the Civil Code
or paragraph (2) or (3) of Section 1161, the tenant failed to comply with the
requirements of Section 1179.03.
46 Sept. 15, 2020 Item #8 Page 60 of 71
(3) (A) The unlawful detainer arises because of a termination of tenancy
for any of the following:
(i) An at-fault just cause, as defined in paragraph (1) of subdivision (b)
of Section 1946.2 of the Civil Code.
(ii) (I) A no-fault just cause, as defined in paragraph (2) of subdivision
(b) of Section 1946.2 of the Civil Code, other than intent to demolish or to
substantially remodel the residential real property, as defined in subparagraph
(D) of paragraph (2) of subdivision (b) of Section 1946.2.
(II) Notwithstanding subclause (I), termination of a tenancy based on
intent to demolish or to substantially remodel the residential real property
shall be permitted if necessary to maintain compliance with the requirements
of Section 1941.1 of the Civil Code, Section 17920.3 or 17920.10 of the
Health and Safety Code, or any other applicable law governing the
habitability of residential rental units.
(iii) The owner of the property has entered into a contract for the sale of
that property with a buyer who intends to occupy the property, and all the
requirements of paragraph (8) of subdivision (e) of Section 1946.2 of the
Civil Code have been satisfied.
(B) In an action under this paragraph, other than an action to which
paragraph (2) also applies, the landlord shall be precluded from recovering
COVID-19 rental debt in connection with any award of damages.
(b) (1) This section does not require a landlord to assist the tenant to
relocate through the payment of relocation costs if the landlord would not
otherwise be required to do so pursuant to Section 1946.2 of the Civil Code
or any other law.
(2) A landlord who is required to assist the tenant to relocate pursuant
to Section 1946.2 of the Civil Code or any other law, may offset the tenant’s
COVID-19 rental debt against their obligation to assist the tenant to relocate.
1179.04. (a) On or before September 30, 2020, a landlord shall provide,
in at least 12-point font, the following notice to tenants who, as of September
1, 2020, have not paid one or more rental payments that came due during
the protected time period:
“NOTICE FROM THE STATE OF CALIFORNIA: The California
Legislature has enacted the COVID-19 Tenant Relief Act of 2020 which
protects renters who have experienced COVID-19-related financial distress
from being evicted for failing to make rental payments due between March
1, 2020, and January 31, 2021.
“COVID-19-related financial distress” means any of the following:
1. Loss of income caused by the COVID-19 pandemic.
2. Increased out-of-pocket expenses directly related to performing essential
work during the COVID-19 pandemic.
3. Increased expenses directly related to the health impact of the
COVID-19 pandemic.
4. Childcare responsibilities or responsibilities to care for an elderly,
disabled, or sick family member directly related to the COVID-19 pandemic
that limit your ability to earn income.
47
Sept. 15, 2020 Item #8 Page 61 of 71
5. Increased costs for childcare or attending to an elderly, disabled, or
sick family member directly related to the COVID-19 pandemic.
6. Other circumstances related to the COVID-19 pandemic that have
reduced your income or increased your expenses.
This law gives you the following protections:
1. If you failed to make rental payments due between March 1, 2020, and
August 31, 2020, because you had decreased income or increased expenses
due to the COVID-19 pandemic, as described above, you cannot be evicted
based on this nonpayment.
2. If you are unable to pay rental payments that come due between
September 1, 2020, and January 31, 2021, because of decreased income or
increased expenses due to the COVID-19 pandemic, as described above,
you cannot be evicted if you pay 25 percent of the rental payments missed
during that time period on or before January 31, 2021.
You must provide, to your landlord, a declaration under penalty of perjury
of your COVID-19-related financial distress attesting to the decreased
income or increased expenses due to the COVID-19 pandemic to be protected
by the eviction limitations described above. Before your landlord can seek
to evict you for failing to make a payment that came due between March 1,
2020, and January 31, 2021, your landlord will be required to give you a
15-day notice that informs you of the amounts owed and includes a blank
declaration form you can use to comply with this requirement.
If your landlord has proof of income on file which indicates that your
household makes at least 130 percent of the median income for the county
where the rental property is located, as published by the Department of
Housing and Community Development in the Official State Income Limits
for 2020, your landlord may also require you to provide documentation
which shows that you have experienced a decrease in income or increase
in expenses due to the COVID-19 pandemic. Your landlord must tell you
in the 15-day notice whether your landlord is requiring that documentation.
Any form of objectively verifiable documentation that demonstrates the
financial impact you have experienced is sufficient, including a letter from
your employer, an unemployment insurance record, or medical bills, and
may be provided to satisfy the documentation requirement.
It is very important you do not ignore a 15-day notice to pay rent or quit
or a notice to perform covenants or quit from your landlord. If you are served
with a 15-day notice and do not provide the declaration form to your landlord
before the 15-day notice expires, you could be evicted. You could also be
evicted beginning February 1, 2021, if you owe rental payments due between
September 1, 2020, and January 31, 2021, and you do not pay an amount
equal to at least 25 percent of the payments missed for that time period.
For information about legal resources that may be available to you, visit
lawhelpca.org.”
(b) The landlord may provide the notice required by subdivision (a) in
the manner prescribed by Section 1162 or by mail.
48 Sept. 15, 2020 Item #8 Page 62 of 71
(c) (1) A landlord may not serve a notice pursuant to subdivision (b) or
(c) of Section 1179.03 before the landlord has provided the notice required
by subdivision (a).
(2) The notice required by subdivision (a) may be provided to a tenant
concurrently with a notice pursuant to subdivision (b) or (c) of Section
1179.03 that is served on or before September 30, 2020.
1179.05. (a) Any ordinance, resolution, regulation, or administrative
action adopted by a city, county, or city and county in response to the
COVID-19 pandemic to protect tenants from eviction is subject to all of the
following:
(1) Any extension, expansion, renewal, reenactment, or new adoption of
a measure, however delineated, that occurs between August 19, 2020, and
January 31, 2021, shall have no effect before February 1, 2021.
(2) Any provision which allows a tenant a specified period of time in
which to repay COVID-19 rental debt shall be subject to all of the following:
(A) If the provision in effect on August 19, 2020, required the repayment
period to commence on a specific date on or before March 1, 2021, any
extension of that date made after August 19, 2020, shall have no effect.
(B) If the provision in effect on August 19, 2020, required the repayment
period to commence on a specific date after March 1, 2021, or conditioned
commencement of the repayment period on the termination of a proclamation
of state of emergency or local emergency, the repayment period is deemed
to begin on March 1, 2021.
(C) The specified period of time during which a tenant is permitted to
repay COVID-19 rental debt may not extend beyond the period that was in
effect on August 19, 2020. In addition, a provision may not permit a tenant
a period of time that extends beyond March 31, 2022, to repay COVID-19
rental debt.
(b) This section does not alter a city, county, or city and county’s authority
to extend, expand, renew, reenact, or newly adopt an ordinance that requires
just cause for termination of a residential tenancy or amend existing
ordinances that require just cause for termination of a residential tenancy,
consistent with subdivision (g) of Section 1946.2, provided that a provision
enacted or amended after August 19, 2020, shall not apply to rental payments
that came due between March 1, 2020, and January 31, 2021.
(c) The one-year limitation provided in subdivision (2) of Section 1161
is tolled during any time period that a landlord is or was prohibited by any
ordinance, resolution, regulation, or administrative action adopted by a city,
county, or city and county in response to the COVID-19 pandemic to protect
tenants from eviction based on nonpayment of rental payments from serving
a notice that demands payment of COVID-19 rental debt pursuant to
subdivision (e) of Section 798.56 of the Civil Code or paragraph (2) of
Section 1161.
(d) It is the intent of the Legislature that this section be applied
retroactively to August 19, 2020.
(e) The Legislature finds and declares that this section addresses a matter
of statewide concern rather than a municipal affair as that term is used in
49
Sept. 15, 2020 Item #8 Page 63 of 71
Section 5 of Article XI of the California Constitution. Therefore, this section
applies to all cities, including charter cities.
(f) It is the intent of the Legislature that the purpose of this section is to
protect individuals negatively impacted by the COVID-19 pandemic, and
that this section does not provide the Legislature’s understanding of the
legal validity on any specific ordinance, resolution, regulation, or
administrative action adopted by a city, county, or city and county in
response to the COVID-19 pandemic to protect tenants from eviction.
1179.06. Any provision of a stipulation, settlement agreement, or other
agreement entered into on or after the effective date of this chapter, including
a lease agreement, that purports to waive the provisions of this chapter is
prohibited and is void as contrary to public policy.
1179.07. This chapter shall remain in effect until February 1, 2025, and
as of that date is repealed.
SEC. 21. (a) The Business, Consumer Services and Housing Agency
shall, in consultation with the Department of Finance, engage with residential
tenants, landlords, property owners, deed restricted affordable housing
providers, and financial sector stakeholders about strategies and approaches
to direct potential future federal stimulus funding to most effectively and
efficiently provide relief to distressed tenants, landlords, and property
owners, including exploring strategies to create access to liquidity in
partnership with financial institutions or other financial assistance. Subject
to availability of funds and other budget considerations, and only upon
appropriation by the Legislature, these strategies should inform
implementation of the funds. In creating these strategies, special focus shall
be given to low-income tenants, small property owners, and affordable
housing providers who have suffered direct financial hardship as a result
of the COVID-19 pandemic.
(b) For the purposes of this section, “future federal stimulus funding”
does not include funding identified in the 2020 Budget Act.
SEC. 22. The provisions of this act are severable. If any provision of
this act or its application is held invalid, that invalidity shall not affect other
provisions or applications that can be given effect without the invalid
provision or application.
SEC. 23. No reimbursement is required by this act pursuant to Section
6 of Article XIIIB of the California Constitution because the only costs that
may be incurred by a local agency or school district will be incurred because
this act creates a new crime or infraction, eliminates a crime or infraction,
or changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a crime
within the meaning of Section 6 of Article XIIIB of the California
Constitution.
SEC. 24. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the meaning of
Article IV of the California Constitution and shall go into immediate effect.
The facts constituting the necessity are:
50 Sept. 15, 2020 Item #8 Page 64 of 71
To avert economic and social harm by providing a structure for temporary
relief to financially distressed tenants, homeowners, and small landlords
during the public health emergency, and to ensure that landlords and tenants
are able to calculate the maximum allowable rental rate increase within a
12-month period at the earliest possible time, it is necessary that this act
take effect immediately.
O
51
Sept. 15, 2020 Item #8 Page 65 of 71
55292 Federal Register /Vol. 85, No. 173/Friday, September 4, 2020/Notices
1CDC, People with Certain Medical Conditions,
https://www.cdc.gov/coronavirus/2019-ncov/need-
extra-precautions/people-with-medical-
conditions.html (accessed August 26, 2020).
2Faust JS, Lin Z, del Rio C. Comparison of
Estimated Excess Deaths in New York City During
the COVID–19 and 1918 Influenza Pandemics.
JAMA New Open. 2020;3(8):e2017527. doi:10.1001/
jamanetworkopen.2020.17527.
3For purposes of this Order, ‘‘person’’ includes
corporations, companies, associations, firms,
partnerships, societies, and joint stock companies,
as well as individuals.
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Centers for Disease Control and
Prevention
Temporary Halt in Residential
Evictions To Prevent the Further
Spread of COVID–19
AGENCY: Centers for Disease Control and
Prevention (CDC), Department of Health
and Human Services (HHS).
ACTION: Agency Order.
SUMMARY: The Centers for Disease
Control and Prevention (CDC), located
within the Department of Health and
Human Services (HHS) announces the
issuance of an Order under Section 361
of the Public Health Service Act to
temporarily halt residential evictions to
prevent the further spread of COVID–19.
DATES: This Order is effective
September 4, 2020 through December
31, 2020.
FOR FURTHER INFORMATION CONTACT:
Nina Witkofsky, Acting Chief of Staff,
Centers for Disease Control and
Prevention, 1600 Clifton Road NE, MS
H21–10, Atlanta, GA 30329; Telephone:
404–639–7000; Email: cdcregulations@
cdc.gov.
SUPPLEMENTARY INFORMATION:
Background
There is currently a pandemic of a
respiratory disease (‘‘COVID–19’’)
caused by a novel coronavirus (SARS–
COV–2) that has now spread globally,
including cases reported in all fifty
states within the United States plus the
District of Columbia and U.S. territories
(excepting American Samoa). As of
August 24, 2020, there were over
23,000,000 cases of COVID–19 globally
resulting in over 800,000 deaths; over
5,500,000 cases have been identified in
the United States, with new cases being
reported daily and over 174,000 deaths
due to the disease.
The virus that causes COVID–19
spreads very easily and sustainably
between people who are in close contact
with one another (within about 6 feet),
mainly through respiratory droplets
produced when an infected person
coughs, sneezes, or talks. Some people
without symptoms may be able to
spread the virus. Among adults, the risk
for severe illness from COVID–19
increases with age, with older adults at
highest risk. Severe illness means that
persons with COVID–19 may require
hospitalization, intensive care, or a
ventilator to help them breathe, and
may be fatal. People of any age with
certain underlying medical conditions,
such as cancer, an
immunocompromised state, obesity,
serious heart conditions, and diabetes,
are at increased risk for severe illness
from COVID–19.1
COVID–19 presents a historic threat to
public health. According to one recent
study, the mortality associated with
COVID–19 during the early phase of the
outbreak in New York City was
comparable to the peak mortality
observed during the 1918 H1N1
influenza pandemic.2 During the 1918
H1N1 influenza pandemic, there were
approximately 50 million influenza-
related deaths worldwide, including
675,000 in the United States. To
respond to this public health threat, the
Federal, State, and local governments
have taken unprecedented or
exceedingly rare actions, including
border closures, restrictions on travel,
stay-at-home orders, mask requirements,
and eviction moratoria. Despite these
best efforts, COVID–19 continues to
spread and further action is needed.
In the context of a pandemic, eviction
moratoria—like quarantine, isolation,
and social distancing—can be an
effective public health measure utilized
to prevent the spread of communicable
disease. Eviction moratoria facilitate
self-isolation by people who become ill
or who are at risk for severe illness from
COVID–19 due to an underlying
medical condition. They also allow
State and local authorities to more
easily implement stay-at-home and
social distancing directives to mitigate
the community spread of COVID–19.
Furthermore, housing stability helps
protect public health because
homelessness increases the likelihood of
individuals moving into congregate
settings, such as homeless shelters,
which then puts individuals at higher
risk to COVID–19. The ability of these
settings to adhere to best practices, such
as social distancing and other infection
control measures, decreases as
populations increase. Unsheltered
homelessness also increases the risk that
individuals will experience severe
illness from COVID–19.
Applicability
Under this Order, a landlord, owner
of a residential property, or other
person 3 with a legal right to pursue
eviction or possessory action, shall not
evict any covered person from any
residential property in any jurisdiction
to which this Order applies during the
effective period of the Order. This Order
does not apply in any State, local,
territorial, or tribal area with a
moratorium on residential evictions that
provides the same or greater level of
public-health protection than the
requirements listed in this Order. Nor
does this order apply to American
Samoa, which has reported no cases of
COVID–19, until such time as cases are
reported.
In accordance with 42 U.S.C. 264(e),
this Order does not preclude State,
local, territorial, and tribal authorities
from imposing additional requirements
that provide greater public-health
protection and are more restrictive than
the requirements in this Order.
This Order is a temporary eviction
moratorium to prevent the further
spread of COVID–19. This Order does
not relieve any individual of any
obligation to pay rent, make a housing
payment, or comply with any other
obligation that the individual may have
under a tenancy, lease, or similar
contract. Nothing in this Order
precludes the charging or collecting of
fees, penalties, or interest as a result of
the failure to pay rent or other housing
payment on a timely basis, under the
terms of any applicable contract.
Renter’s or Homeowner’s Declaration
Attachment A is a Declaration form
that tenants, lessees, or residents of
residential properties who are covered
by the CDC’s order temporarily halting
residential evictions to prevent the
further spread of COVID–19 may use. To
invoke the CDC’s order these persons
must provide an executed copy of the
Declaration form (or a similar
declaration under penalty of perjury) to
their landlord, owner of the residential
property where they live, or other
person who has a right to have them
evicted or removed from where they
live. Each adult listed on the lease,
rental agreement, or housing contract
should likewise complete and provide a
declaration. Unless the CDC order is
extended, changed, or ended, the order
prevents these persons from being
evicted or removed from where they are
living through December 31, 2020.
These persons are still required to pay
rent and follow all the other terms of
their lease and rules of the place where
they live. These persons may also still
be evicted for reasons other than not
paying rent or making a housing
VerDate Sep<11>2014 16:42 Sep 03, 2020 Jkt 250001 PO 00000 Frm 00041 Fmt 4703 Sfmt 4703 E:\FR\FM\04SEN1.SGM 04SEN1jbell on DSKJLSW7X2PROD with NOTICESEXHIBIT 4
Sept. 15, 2020 Item #8 Page 66 of 71
55293 Federal Register /Vol. 85, No. 173/Friday, September 4, 2020/Notices
4For purposes of this Order, ‘‘person’’ includes
corporations, companies, associations, firms,
partnerships, societies, and joint stock companies,
as well as individuals.
5This definition is based on factors that are
known to contribute to evictions and thus increase
the need for individuals to move into close quarters
in new congregate or shared living arrangements or
experience homelessness. Individuals who suffer
job loss, have limited financial resources, are low
income, or have high out-of-pocket medical
expenses are more likely to be evicted for
nonpayment of rent than others not experiencing
these factors. See Desmond, M., Gershenson, C.,
Who gets evicted? Assessing individual,
neighborhood, and network factors, Social Science
Research 62 (2017), 366–377, http://dx.doi.org/
10.1016/j.ssresearch.2016.08.017, (identifying job
loss as a possible predictor of eviction because
renters who lose their jobs experience not only a
sudden loss of income but also the loss of
predictable future income). According to one
survey, over one quarter (26%) of respondents also
identified job loss as the primary cause of
homelessness. See 2019 San Francisco Homeless
Point-in-Time Count & Survey, page 22, available
at: https://hsh.sfgov.org/wp-content/uploads/2020/
01/2019HIRDReport_SanFrancisco_FinalDraft-
1.pdf.
6According to one study, the national two-
bedroom housing wage in 2020 was $23.96 per hour
(approximately, $49,837 annually), meaning that an
hourly wage of $23.96 was needed to afford a
modest two bedroom house without spending more
than 30% of one’s income on rent. The hourly wage
needed in Hawaii (the highest cost U.S. State for
rent) was $38.76 (approximately $80,621 annually).
See National Low-Income Housing Coalition, Out of
Reach: The High Cost of Housing 2020, available at:
https://reports.nlihc.org/oor. As further explained
herein, because this Order is intended to serve the
critical public health goal of preventing evicted
individuals from potentially contributing to the
interstate spread of COVID–19 through movement
into close quarters in new congregate, shared
housing settings, or though homelessness, the
higher income thresholds listed here have been
determined to better serve this goal.
7An extraordinary medical expense is any
unreimbursed medical expense likely to exceed
7.5% of one’s adjusted gross income for the year.
payment. Executed declarations should
not be returned to the Federal
Government.
Centers for Disease Control and
Prevention, Department of Health and
Human Services
Order Under Section 361 of the Public
Health Service Act (42 U.S.C. 264) and
42 CFR 70.2
Temporary Halt in Residential
Evictions To Prevent the Further
Spread of COVID–19
Summary
Notice and Order; and subject to the
limitations under ‘‘Applicability’’:
Under 42 CFR 70.2, a landlord, owner
of a residential property, or other
person 4 with a legal right to pursue
eviction or possessory action, shall not
evict any covered person from any
residential property in any jurisdiction
to which this Order applies during the
effective period of the Order.
Definitions
‘‘Available government assistance’’
means any governmental rental or
housing payment benefits available to
the individual or any household
member.
‘‘Available housing’’ means any
available, unoccupied residential
property, or other space for occupancy
in any seasonal or temporary housing,
that would not violate Federal, State, or
local occupancy standards and that
would not result in an overall increase
of housing cost to such individual.
‘‘Covered person’’5 means any tenant,
lessee, or resident of a residential
property who provides to their landlord,
the owner of the residential property, or
other person with a legal right to pursue
eviction or a possessory action, a
declaration under penalty of perjury
indicating that:
(1) The individual has used best
efforts to obtain all available
government assistance for rent or
housing;
(2) The individual either (i) expects to
earn no more than $99,000 in annual
income for Calendar Year 2020 (or no
more than $198,000 if filing a joint tax
return),6 (ii) was not required to report
any income in 2019 to the U.S. Internal
Revenue Service, or (iii) received an
Economic Impact Payment (stimulus
check) pursuant to Section 2201 of the
CARES Act;
(3) the individual is unable to pay the
full rent or make a full housing payment
due to substantial loss of household
income, loss of compensable hours of
work or wages, a lay-off, or
extraordinary7 out-of-pocket medical
expenses;
(4) the individual is using best efforts
to make timely partial payments that are
as close to the full payment as the
individual’s circumstances may permit,
taking into account other
nondiscretionary expenses; and
(5) eviction would likely render the
individual homeless—or force the
individual to move into and live in
close quarters in a new congregate or
shared living setting—because the
individual has no other available
housing options.
‘‘Evict’’ and ‘‘Eviction’’ means any
action by a landlord, owner of a
residential property, or other person
with a legal right to pursue eviction or
a possessory action, to remove or cause
the removal of a covered person from a
residential property. This does not
include foreclosure on a home mortgage.
‘‘Residential property’’ means any
property leased for residential purposes,
including any house, building, mobile
home or land in a mobile home park, or
similar dwelling leased for residential
purposes, but shall not include any
hotel, motel, or other guest house rented
to a temporary guest or seasonal tenant
as defined under the laws of the State,
territorial, tribal, or local jurisdiction.
‘‘State’’ shall have the same definition
as under 42 CFR 70.1, meaning ‘‘any of
the 50 states, plus the District of
Columbia.’’
‘‘U.S. territory’’ shall have the same
definition as under 42 CFR 70.1,
meaning ‘‘any territory (also known as
possessions) of the United States,
including American Samoa, Guam, the
Northern Mariana Islands, the
Commonwealth of Puerto Rico, and the
U.S. Virgin Islands.’’
Statement of Intent
This Order shall be interpreted and
implemented in a manner as to achieve
the following objectives: •Mitigating the spread of COVID–19
within congregate or shared living
settings, or through unsheltered
homelessness; •mitigating the further spread of
COVID–19 from one U.S. State or U.S.
territory into any other U.S. State or
U.S. territory; and •supporting response efforts to
COVID–19 at the Federal, State, local,
territorial, and tribal levels.
Background
There is currently a pandemic of a
respiratory disease (‘‘COVID–19’’)
caused by a novel coronavirus (SARS–
COV–2) that has now spread globally,
including cases reported in all fifty
states within the United States plus the
District of Columbia and U.S. territories
(excepting American Samoa). As of
August 24, 2020, there were over
23,000,000 cases of COVID–19 globally
resulting in over 800,000 deaths; over
5,500,000 cases have been identified in
the United States, with new cases being
reported daily and over 174,000 deaths
due to the disease.
The virus that causes COVID–19
spreads very easily and sustainably
between people who are in close contact
with one another (within about 6 feet),
mainly through respiratory droplets
produced when an infected person
coughs, sneezes, or talks. Some people
without symptoms may be able to
spread the virus. Among adults, the risk
for severe illness from COVID–19
increases with age, with older adults at
highest risk. Severe illness means that
persons with COVID–19 may require
hospitalization, intensive care, or a
ventilator to help them breathe, and
may be fatal. People of any age with
certain underlying medical conditions,
such as cancer, an
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8CDC, People with Certain Medical Conditions,
https://www.cdc.gov/coronavirus/2019-ncov/need-
extra-precautions/people-with-medical-
conditions.html (accessed August 26, 2020).
9Faust JS, Lin Z, del Rio C. Comparison of
Estimated Excess Deaths in New York City During
the COVID–19 and 1918 Influenza Pandemics.
JAMA New Open. 2020;3(8):e2017527. doi:10.1001/
jamanetworkopen.2020.17527.
10Individuals who might have COVID–19 are
advised to stay home except to get medical care.
Accordingly, individuals who might have COVID–
19 and take reasonable precautions to not spread
the disease should not be evicted on the ground that
they may pose a health or safety threat to other
residents. See What to Do if You are Sick, available
at https://www.cdc.gov/coronavirus/2019-ncov/if-
you-are-sick/steps-when-sick.html.
11United States Census Bureau. American
Housing Survey, 2017. https://www.census.gov/
programs-surveys/ahs.html.
12Bi Q, Wu Y, Mei S, et al. Epidemiology and
transmission of COVID–19 in 391 cases and 1286
of their close contacts in Shenzhen, China: a
retrospective cohort study. Lancet Infect Dis 2020,
https://doi.org/10.1016/S1473-3099(20)30287-5.
13See CDC COVID–19 Guidance for Shared or
Congregate Housing, available at: https://
www.cdc.gov/coronavirus/2019-ncov/community/
shared-congregate-house/guidance-shared-
congregate-housing.html.
14Because evictions generally require 30-days’
notice, the effects of housing displacement due to
the expiration of the CARES act are not expected
to manifest until August 27, 2020.
15See Congressional Research Service, CARES
Act Eviction Moratorium, (April 7, 2020) available
at: https://crsreports.congress.gov/product/pdf/IN/
IN11320.
immunocompromised state, obesity,
serious heart conditions, and diabetes,
are at increased risk for severe illness
from COVID–19.8
COVID–19 presents a historic threat to
public health. According to one recent
study, the mortality associated with
COVID–19 during the early phase of the
outbreak in New York City was
comparable to the peak mortality
observed during the 1918 H1N1
influenza pandemic.9 During the 1918
H1N1 influenza pandemic, there were
approximately 50 million influenza-
related deaths worldwide, including
675,000 in the United States. To
respond to this public health threat, the
Federal, State, and local governments
have taken unprecedented or
exceedingly rare actions, including
border closures, restrictions on travel,
stay-at-home orders, mask requirements,
and eviction moratoria. Despite these
significant efforts, COVID–19 continues
to spread and further action is needed.
In the context of a pandemic, eviction
moratoria—like quarantine, isolation,
and social distancing—can be an
effective public health measure utilized
to prevent the spread of communicable
disease. Eviction moratoria facilitate
self-isolation by people who become ill
or who are at risk for severe illness from
COVID–19 due to an underlying
medical condition. They also allow
State and local authorities to more
easily implement stay-at-home and
social distancing directives to mitigate
the community spread of COVID–19.
Furthermore, housing stability helps
protect public health because
homelessness increases the likelihood of
individuals moving into close quarters
in congregate settings, such as homeless
shelters, which then puts individuals at
higher risk to COVID–19.
Applicability
This Order does not apply in any
State, local, territorial, or tribal area
with a moratorium on residential
evictions that provides the same or
greater level of public-health protection
than the requirements listed in this
Order. In accordance with 42 U.S.C.
264(e), this Order does not preclude
State, local, territorial, and tribal
authorities from imposing additional
requirements that provide greater
public-health protection and are more
restrictive than the requirements in this
Order.
Additionally, this Order shall not
apply to American Samoa, which has
reported no cases of COVID–19, until
such time as cases are reported.
This Order is a temporary eviction
moratorium to prevent the further
spread of COVID–19. This Order does
not relieve any individual of any
obligation to pay rent, make a housing
payment, or comply with any other
obligation that the individual may have
under a tenancy, lease, or similar
contract. Nothing in this Order
precludes the charging or collecting of
fees, penalties, or interest as a result of
the failure to pay rent or other housing
payment on a timely basis, under the
terms of any applicable contract.
Nothing in this Order precludes
evictions based on a tenant, lessee, or
resident: (1) Engaging in criminal
activity while on the premises; (2)
threatening the health or safety of other
residents;10 (3) damaging or posing an
immediate and significant risk of
damage to property; (4) violating any
applicable building code, health
ordinance, or similar regulation relating
to health and safety; or (5) violating any
other contractual obligation, other than
the timely payment of rent or similar
housing-related payment (including
non-payment or late payment of fees,
penalties, or interest).
Eviction and Risk of COVID–19
Transmission
Evicted renters must move, which
leads to multiple outcomes that increase
the risk of COVID–19 spread.
Specifically, many evicted renters move
into close quarters in shared housing or
other congregate settings. According to
the Census Bureau American Housing
Survey, 32% of renters reported that
they would move in with friends or
family members upon eviction, which
would introduce new household
members and potentially increase
household crowding.11 Studies show
that COVID–19 transmission occurs
readily within households; household
contacts are estimated to be 6 times
more likely to become infected by an
index case of COVID–19 than other
close contacts.12
Shared housing is not limited to
friends and family. It includes a broad
range of settings, including transitional
housing, and domestic violence and
abuse shelters. Special considerations
exist for such housing because of the
challenges of maintaining social
distance. Residents often gather closely
or use shared equipment, such as
kitchen appliances, laundry facilities,
stairwells, and elevators. Residents may
have unique needs, such as disabilities,
cognitive decline, or no access to
technology, and thus may find it more
difficult to take actions to protect
themselves from COVID–19. CDC
recommends that shelters provide new
residents with a clean mask, keep them
isolated from others, screen for
symptoms at entry, or arrange for
medical evaluations as needed
depending on symptoms.13
Accordingly, an influx of new residents
at facilities that offer support services
could potentially overwhelm staff and,
if recommendations are not followed,
lead to exposures.
Congress passed the Coronavirus Aid,
Relief, and Economic Security (CARES)
Act (Pub. L. 116–136) to aid individuals
and businesses adversely affected by
COVID–19. Section 4024 of the CARES
Act provided a 120-day moratorium on
eviction filings as well as other
protections for tenants in certain rental
properties with Federal assistance or
federally related financing. These
protections helped alleviate the public
health consequences of tenant
displacement during the COVID–19
pandemic. The CARES Act eviction
moratorium expired on July 24, 2020.14
The protections in the CARES Act
supplemented temporary eviction
moratoria and rent freezes implemented
by governors and local officials using
emergency powers.
Researchers estimated that this
temporary Federal moratorium provided
relief to a material portion of the
nation’s roughly 43 million renters.15
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16See HUD, A Picture of Subsidized Households
General Description of the Data and Bibliography,
available at: https://www.huduser.gov/portal/
datasets/assthsg/statedata98/descript.html.
17See Emily Benfer, et al., The COVID–19
Eviction Crisis: An Estimated 30–40 Million People
in America are at Risk, available at: https://
www.aspeninstitute.org/blog-posts/the-covid-19-
eviction-crisis-an-estimated-30-40-million-people-
in-america-are-at-risk/.
18As a baseline, approximately 900,000 renters
are evicted every year in the United States.
Princeton University Eviction Lab. National
Estimates: Eviction in America. https://
evictionlab.org/national-estimates/.
19See U.S. Census Bureau, CPS Historical
Migration/Geographic Mobility Tables, available at:
https://www.census.gov/data/tables/time-series/
demo/geographic-mobility/historic.html.
20Id.
21See CDC, Coronavirus Disease 2019 (COVID–
19), People Who Are at Increased Risk for Severe
Illness, available at https://www.cdc.gov/
coronavirus/2019-ncov/need-extra-precautions/
people-at-increased-risk.html (accessed August 26,
2020).
22Seattle-King County. Point in Time Count.
https://regionalhomelesssystem.org/wp-content/
uploads/2020/07/Count-Us-In-2020-Final_
7.29.2020.pdf
23United States Department of Housing and
Urban Development. The 2017 Annual Homeless
Assessment Report (AHAR) to Congress: Part 2.
Available at: https://files.hudexchange.info/
resources/documents/2017-AHAR-Part-2.pdf
24Mosites E, et al, Assessment of SARS-CoV–2
Infection Prevalence in Homeless Shelters—Four
U.S. Cities, March 27–April 15, 2020. MMWR 2020
May 1;69(17):521–522.
25Tobolowsky FA, et al. COVID–19 Outbreak
Among Three Affiliated Homeless Service Sites—
King County, Washington, 2020. MMWR 2020 May
1;69(17):523–526.
26Baggett TP, Keyes H, Sporn N, Gaeta JM.
Prevalence of SARS-CoV–2 Infection in Residents of
a Large Homeless Shelter in Boston. JAMA. 2020
Apr 27;323(21):2191–2. Online ahead of print.
27Imbert E, et al. Coronavirus Disease 2019
(COVID–19) Outbreak in a San Francisco Homeless
Shelter. Clin Infect Dis. 2020 Aug 3.
28National Health Care for the Homeless Council
and Centers for Disease Control and Prevention.
Universal Testing Data Dashboard. Available at:
https://nhchc.org/cdc-covid-dashboard/.
29Centers for Disease Control and Prevention.
Interim Guidance for Homeless Service Providers to
Plan and Respond to COVID–19. https://
www.cdc.gov/coronavirus/2019-ncov/community/
homeless-shelters/plan-prepare-respond.html.
30In January 2018, 552,830 people were counted
as homeless in the United States. Of those, 194,467
(35 percent) were unsheltered, and 358,363 (65
percent) were sheltered. See, Council of Economic
Advisors, The State of Homelessness in America
(September 2019), available at https://
www.whitehouse.gov/wp-content/uploads/2019/09/
The-State-of-Homelessness-in-America.pdf.
31Hugo Vasquez-Vera, et al. The threat of home
eviction and its effects on health through the equity
Continued
Approximately 12.3 million rental units
have federally backed financing,
representing 28% of renters. Other data
show more than 2 million housing
vouchers along with approximately 2
million other federally assisted rental
units.16
The Federal moratorium, however,
did not reach all renters. Many renters
who fell outside the scope of the Federal
moratorium were protected under State
and local moratoria. In the absence of
State and local protections, as many as
30–40 million people in America could
be at risk of eviction.17 A wave of
evictions on that scale would be
unprecedented in modern times.18 A
large portion of those who are evicted
may move into close quarters in shared
housing or, as discussed below, become
homeless, thus contributing to the
spread of COVID–19.
The statistics on interstate moves
show that mass evictions would likely
increase the interstate spread of COVID–
19. Over 35 million Americans,
representing approximately 10% of the
U.S. population, move each year.19
Approximately 15% of moves are
interstate.20
Eviction, Homelessness, and Risk of
Severe Disease From COVID–19
Evicted individuals without access to
housing or assistance options may also
contribute to the homeless population,
including older adults or those with
underlying medical conditions, who are
more at risk for severe illness from
COVID–19 than the general
population.21 In Seattle-King County, 5–
15% of people experiencing
homelessness between 2018 and 2020
cited eviction as the primary reason for
becoming homeless.22 Additionally,
some individuals and families who are
evicted may originally stay with family
or friends, but subsequently seek
homeless services. Among people who
entered shelters throughout the United
States in 2017, 27% were staying with
family or friends beforehand.23
People experiencing homelessness are
a high-risk population. It may be more
difficult for these persons to
consistently access the necessary
resources in order to adhere to public
health recommendations to prevent
COVID–19. For instance, it may not be
possible to avoid certain congregate
settings such as homeless shelters, or
easily access facilities to engage in
handwashing with soap and water.
Extensive outbreaks of COVID–19
have been identified in homeless
shelters.24 In Seattle, Washington, a
network of three related homeless
shelters experienced an outbreak that
led to 43 cases among residents and staff
members.25 In Boston, Massachusetts,
universal COVID–19 testing at a single
shelter revealed 147 cases, representing
36% of shelter residents.26 COVID–19
testing in a single shelter in San
Francisco led to the identification of 101
cases (67% of those tested).27
Throughout the United States, among
208 shelters reporting universal
diagnostic testing data, 9% of shelter
clients have tested positive.28
CDC guidance recommends increasing
physical distance between beds in
homeless shelters.29 To adhere to this
guidance, shelters have limited the
number of people served throughout the
United States. In many places,
considerably fewer beds are available to
individuals who become homeless.
Shelters that do not adhere to the
guidance, and operate at ordinary or
increased occupancy, are at greater risk
for the types of outbreaks described
above. The challenge of mitigating
disease transmission in homeless
shelters has been compounded because
some organizations have chosen to stop
or limit volunteer access and
participation.
In the context of the current
pandemic, large increases in evictions
could have at least two potential
negative consequences. One is if
homeless shelters increase occupancy in
ways that increase the exposure risk to
COVID–19. The other is if homeless
shelters turn away the recently
homeless, who could become
unsheltered, and further contribute to
the spread of COVID–19. Neither
consequence is in the interest of the
public health.
The risk of COVID–19 spread
associated with unsheltered
homelessness (those who are sleeping
outside or in places not meant for
human habitation) is of great concern to
CDC. Over 35% of homeless persons are
typically unsheltered.30 The
unsheltered homeless are at higher risk
for infection when there is community
spread of COVID–19. The risks
associated with sleeping and living
outdoors or in an encampment setting
are different than from staying indoors
in a congregate setting, such as an
emergency shelter or other congregate
living facility. While outdoor settings
may allow people to increase physical
distance between themselves and
others, they may also involve exposure
to the elements and inadequate access to
hygiene, sanitation facilities, health
care, and therapeutics. The latter factors
contribute to the further spread of
COVID–19.
Additionally, research suggests that
the population of persons who would be
evicted and become homeless would
include many who are predisposed to
developing severe disease from COVID–
19. Five studies have shown an
association between eviction and
hypertension, which has been
associated with more severe outcomes
from COVID–19.31 Also, the homeless
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lens: A systematic review. Social Science and
Medicine. 175 (2017) 199e208.
32Fazel S, Geddes JR, Kushel M. The health of
homeless people in high-income countries:
descriptive epidemiology, health consequences, and
clinical and policy recommendations. Lancet.
2014;384(9953):1529–1540.
33Hsu HE, et al. Race/Ethnicity, Underlying
Medical Conditions, Homelessness, and
Hospitalization Status of Adult Patients with
COVID–19 at an Urban Safety-Net Medical Center—
Boston, Massachusetts, 2020. MMWR 2020 Jul
10;69(27):864–869. Historically, African Americans
and Hispanic Americans are disproportionately
represented in evictions compared to other races.
They are more likely to experience severe outcomes
of COVID–19. Id.
34See, generally, the Annual Homeless
Assessment Report to Congress (2007), available at:
https://www.huduser.gov/Publications/pdf/ahar.pdf
(acknowledging the seasonality of shelter bed use).
35Ly TDA, Edouard S, Badiaga S, et al.
Epidemiology of respiratory pathogen carriage in
the homeless population within two shelters in
Marseille, France, 2015–2017: Cross sectional 1-day
surveys. Clin Microbiol Infect. 2019; 25(2):249.e1–
249.e6.
36In the United States, public health measures are
implemented at all levels of government, including
the Federal, State, local, and tribal levels. Publicly-
available compilations of pending measures
indicate that eviction moratoria and other
protections from eviction have expired or are set to
expire in many jurisdictions. Eviction Lab, COVID–
19 Housing Policy Scorecard, available at: https://
evictionlab.org/covid-policy-scorecard/.
often have underlying conditions that
increase their risk of severe outcomes of
COVID–19.32 Among patients with
COVID–19, homelessness has been
associated with increased likelihood of
hospitalization.33
These public health risks may
increase seasonally. Each year, as winter
approaches and the temperature drops,
many homeless move into shelters to
escape the cold and the occupancy of
shelters increases.34 At the same time,
there is evidence to suggest that the
homeless are more susceptible to
respiratory tract infections,35 which
may include seasonal influenza. While
there are differences in the
epidemiology of COVID–19 and
seasonal influenza, the potential co-
circulation of viruses during periods of
increased occupancy in shelters could
increase the risk to occupants in those
shelters.
In short, evictions threaten to increase
the spread of COVID–19 as they force
people to move, often into close quarters
in new shared housing settings with
friends or family, or congregate settings
such as homeless shelters. The ability of
these settings to adhere to best practices,
such as social distancing and other
infection control measures, decreases as
populations increase. Unsheltered
homelessness also increases the risk that
individuals will experience severe
illness from COVID–19.
Findings and Action
Therefore, I have determined the
temporary halt in evictions in this Order
constitutes a reasonably necessary
measure under 42 CFR 70.2 to prevent
the further spread of COVID–19
throughout the United States. I have
further determined that measures by
states, localities, or U.S. territories that
do not meet or exceed these minimum
protections are insufficient to prevent
the interstate spread of COVID–19.36
Based on the convergence of COVID–
19, seasonal influenza, and the
increased risk of individuals sheltering
in close quarters in congregate settings
such as homeless shelters, which may
be unable to provide adequate social
distancing as populations increase, all
of which may be exacerbated as fall and
winter approach, I have determined that
a temporary halt on evictions through
December 31, 2020, subject to further
extension, modification, or rescission, is
appropriate.
Therefore, under 42 CFR 70.2, subject
to the limitations under the
‘‘Applicability’’ section, a landlord,
owner of a residential property, or other
person with a legal right to pursue
eviction or possessory action shall not
evict any covered person from any
residential property in any State or U.S.
territory in which there are documented
cases of COVID–19 that provides a level
of public-health protections below the
requirements listed in this Order.
This Order is not a rule within the
meaning of the Administrative
Procedure Act (‘‘APA’’) but rather an
emergency action taken under the
existing authority of 42 CFR 70.2. In the
event that this Order qualifies as a rule
under the APA, notice and comment
and a delay in effective date are not
required because there is good cause to
dispense with prior public notice and
comment and the opportunity to
comment on this Order and the delay in
effective date. See 5 U.S.C. 553(b)(3)(B).
Considering the public-health
emergency caused by COVID–19, it
would be impracticable and contrary to
the public health, and by extension the
public interest, to delay the issuance
and effective date of this Order.
A delay in the effective date of the
Order would permit the occurrence of
evictions—potentially on a mass scale—
that could have potentially significant
consequences. As discussed above, one
potential consequence would be that
evicted individuals would move into
close quarters in congregate or shared
living settings, including homeless
shelters, which would put the
individuals at higher risk to COVID–19.
Another potential consequence would
be if evicted individuals become
homeless and unsheltered, and further
contribute to the spread of COVID–19. A
delay in the effective date of the Order
that leads to such consequences would
defeat the purpose of the Order and
endanger the public health. Immediate
action is necessary.
Similarly, if this Order qualifies as a
rule under the APA, the Office of
Information and Regulatory Affairs has
determined that it would be a major rule
under the Congressional Review Act
(CRA). But there would not be a delay
in its effective date. The agency has
determined that for the same reasons,
there would be good cause under the
CRA to make the requirements herein
effective immediately.
If any provision of this Order, or the
application of any provision to any
persons, entities, or circumstances, shall
be held invalid, the remainder of the
provisions, or the application of such
provisions to any persons, entities, or
circumstances other than those to which
it is held invalid, shall remain valid and
in effect.
This Order shall be enforced by
Federal authorities and cooperating
State and local authorities through the
provisions of 18 U.S.C. 3559, 3571; 42
U.S.C. 243, 268, 271; and 42 CFR 70.18.
However, this Order has no effect on the
contractual obligations of renters to pay
rent and shall not preclude charging or
collecting fees, penalties, or interest as
a result of the failure to pay rent or other
housing payment on a timely basis,
under the terms of any applicable
contract.
Criminal Penalties
Under 18 U.S.C. 3559, 3571; 42 U.S.C.
271; and 42 CFR 70.18, a person
violating this Order may be subject to a
fine of no more than $100,000 if the
violation does not result in a death or
one year in jail, or both, or a fine of no
more than $250,000 if the violation
results in a death or one year in jail, or
both, or as otherwise provided by law.
An organization violating this Order
may be subject to a fine of no more than
$200,000 per event if the violation does
not result in a death or $500,000 per
event if the violation results in a death
or as otherwise provided by law. The
U.S. Department of Justice may initiate
court proceedings as appropriate
seeking imposition of these criminal
penalties.
Notice to Cooperating State and Local
Officials
Under 42 U.S.C. 243, the U.S.
Department of Health and Human
Services is authorized to cooperate with
and aid State and local authorities in the
enforcement of their quarantine and
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37‘‘Available government assistance’’ means any
governmental rental or housing payment benefits
available to the individual or any household
member.
38An ‘‘extraordinary’’ medical expense is any
unreimbursed medical expense likely to exceed
7.5% of one’s adjusted gross income for the year.
39‘‘Available housing’’ means any available,
unoccupied residential property, or other space for
occupancy in any seasonal or temporary housing,
that would not violate Federal, State, or local
occupancy standards and that would not result in
an overall increase of housing cost to you.
other health regulations and to accept
State and local assistance in the
enforcement of Federal quarantine rules
and regulations, including in the
enforcement of this Order.
Notice of Available Federal Resources
While this order to prevent eviction is
effectuated to protect the public health,
the States and units of local government
are reminded that the Federal
Government has deployed
unprecedented resources to address the
pandemic, including housing assistance.
The Department of Housing and
Urban Development (HUD) has
informed CDC that all HUD grantees—
states, cities, communities, and
nonprofits—who received Emergency
Solutions Grants (ESG) or Community
Development Block Grant (CDBG) funds
under the CARES Act may use these
funds to provide temporary rental
assistance, homelessness prevention, or
other aid to individuals who are
experiencing financial hardship because
of the pandemic and are at risk of being
evicted, consistent with applicable laws,
regulations, and guidance.
HUD has further informed CDC that:
HUD’s grantees and partners play a critical
role in prioritizing efforts to support this
goal. As grantees decide how to deploy
CDBG–CV and ESG–CV funds provided by
the CARES Act, all communities should
assess what resources have already been
allocated to prevent evictions and
homelessness through temporary rental
assistance and homelessness prevention,
particularly to the most vulnerable
households.
HUD stands at the ready to support
American communities take these steps to
reduce the spread of COVID–19 and maintain
economic prosperity. Where gaps are
identified, grantees should coordinate across
available Federal, non-Federal, and
philanthropic funds to ensure these critical
needs are sufficiently addressed, and utilize
HUD’s technical assistance to design and
implement programs to support a
coordinated response to eviction prevention
needs. For program support, including
technical assistance, please visit
www.hudexchange.info/program-support.
For further information on HUD resources,
tools, and guidance available to respond to
the COVID–19 pandemic, State and local
officials are directed to visit https://
www.hud.gov/coronavirus. These tools
include toolkits for Public Housing
Authorities and Housing Choice Voucher
landlords related to housing stability and
eviction prevention, as well as similar
guidance for owners and renters in HUD-
assisted multifamily properties.
Similarly, the Department of the
Treasury has informed CDC that the
funds allocated through the Coronavirus
Relief Fund may be used to fund rental
assistance programs to prevent eviction.
Visit https://home.treasury.gov/policy-
issues/cares/state-and-local-
governments for more information.
Effective Date
This Order is effective upon
publication in the Federal Register and
will remain in effect, unless extended,
modified, or rescinded, through
December 31, 2020.
Attachment
Declaration Under Penalty of Perjury
for the Centers for Disease Control and
Prevention’s Temporary Halt in
Evictions to Prevent Further Spread of
COVID–19
This declaration is for tenants,
lessees, or residents of residential
properties who are covered by the CDC’s
order temporarily halting residential
evictions (not including foreclosures on
home mortgages) to prevent the further
spread of COVID–19. Under the CDC’s
order you must provide a copy of this
declaration to your landlord, owner of
the residential property where you live,
or other person who has a right to have
you evicted or removed from where you
live. Each adult listed on the lease,
rental agreement, or housing contract
should complete this declaration.
Unless the CDC order is extended,
changed, or ended, the order prevents
you from being evicted or removed from
where you are living through December
31, 2020. You are still required to pay
rent and follow all the other terms of
your lease and rules of the place where
you live. You may also still be evicted
for reasons other than not paying rent or
making a housing payment. This
declaration is sworn testimony, meaning
that you can be prosecuted, go to jail, or
pay a fine if you lie, mislead, or omit
important information.
I certify under penalty of perjury,
pursuant to 28 U.S.C. 1746, that the
foregoing are true and correct: •I have used best efforts to obtain all
available government assistance for rent
or housing;37 •I either expect to earn no more than
$99,000 in annual income for Calendar
Year 2020 (or no more than $198,000 if
filing a joint tax return), was not
required to report any income in 2019
to the U.S. Internal Revenue Service, or
received an Economic Impact Payment
(stimulus check) pursuant to Section
2201 of the CARES Act; •I am unable to pay my full rent or
make a full housing payment due to
substantial loss of household income,
loss of compensable hours of work or
wages, lay-offs, or extraordinary38 out-
of-pocket medical expenses;
•I am using best efforts to make
timely partial payments that are as close
to the full payment as the individual’s
circumstances may permit, taking into
account other nondiscretionary
expenses;
•If evicted I would likely become
homeless, need to move into a homeless
shelter, or need to move into a new
residence shared by other people who
live in close quarters because I have no
other available housing options.39
•I understand that I must still pay
rent or make a housing payment, and
comply with other obligations that I
may have under my tenancy, lease
agreement, or similar contract. I further
understand that fees, penalties, or
interest for not paying rent or making a
housing payment on time as required by
my tenancy, lease agreement, or similar
contract may still be charged or
collected.
•I further understand that at the end
of this temporary halt on evictions on
December 31, 2020, my housing
provider may require payment in full for
all payments not made prior to and
during the temporary halt and failure to
pay may make me subject to eviction
pursuant to State and local laws.
I understand that any false or misleading
statements or omissions may result in
criminal and civil actions for fines, penalties,
damages, or imprisonment.
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Signature of Declarant Date
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Authority
The authority for this Order is Section
361 of the Public Health Service Act (42
U.S.C. 264) and 42 CFR 70.2.
Dated: September 1, 2020.
Nina B. Witkofsky,
Acting Chief of Staff, Centers for Disease
Control and Prevention.
[FR Doc. 2020–19654 Filed 9–1–20; 4:15 pm]
BILLING CODE 4163–18–P
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Update on Commercial Eviction
Moratorium and Residential Eviction
Relief Developments
David Graham, Chief Innovation Officer
Cindie McMahon, Assistant City Attorney
Sept. 15, 2020
Commercial Eviction Moratorium
•Authorized by Governor’s EO N-28-20
•Adopted April 7, 2020
•Expires the earlier of:
–Withdrawal of EO N-28-20
–End of local emergency
•EO N-28-20 set to expire Sept. 30, 2020
2
Moratorium Provisions
•Temporarily suspends evictions of
–Qualifying commercial tenants
–For nonpayment of rent
–Because of COVID-19 connected business
income decreases
3
Qualifying Commercial Tenants
•Current on rent prior to state of emergency
•Notifies landlord
–Before or within 10 business days of due date
–Unable to pay rent
–For COVID-19 connected reasons
•Provides verifying documentation
4
Financial Obligations
•Tenants remain liable for unpaid rent and
late fees
•Payable within 3 months after the local
emergency ends
•If tenant vacates the leased premises, all
rent owed is due at the time of vacancy
5
Moratorium After N-28-20 Expiration
•May use emergency police power for
moratorium if:
–Not in conflict with federal or state law
–Substantially related to a COVID-19
connected public health/safety purpose
–Not arbitrary
6
Moratorium After N-28-20 Expiration
–Not beyond what is necessary to
accomplish the COVID-19 connected
public health/safety purpose
–Not plainly invasive of constitutional
rights
7
Business Community Engagement
•Nonpayment of rent, rent relief,
landlord/tenant disputes and other lease related issues are topics for webinars and other business community discussions
•Approximately two-dozen contacts
regarding moratorium and/or mediation referrals
8
Other Local Business Relief Efforts
•Economic Recovery and Revitalization Initiative
–$5,000,000
–Business loan program
–Joint marketing strategy
–Shop local gift card program
–Temporary suspension of development standards and fees
–One-on-one support for PPP, CHO, and relief
9
Residential Eviction Relief –AB 3088
•No eviction if:
–Unable to pay rent between March 1 and Aug. 31, 2020
–Provide declaration of COVID-19 related
financial distress
–Higher income tenants may also have to
supply proof of financial distress
10
AB 3088 -Residential Eviction Relief
•No eviction if:
–Unable to pay rent between Sept. 1, 2020 and Jan. 31, 2021
–Pay at least 25% of rent by Jan. 31, 2021
–Provide declaration of COVID-19 related financial distress
–Higher income tenants may also have to supply proof of financial distress
11
AB 3088 -Residential Eviction Relief
•A tenant still owes any unpaid rental debt incurred between March 1, 2020 and Jan. 31, 2021
•Beginning March 1, 2021, the landlord may
recover unpaid rental debt in small claims court
•No provision for a repayment period; limits on
locally established repayment periods
12
AB 3088 -Residential Eviction Relief
•Existing local residential relief ordinances may remain in effect until they expire.
•New, extended, or expanded local residential relief ordinances may not undermine AB 3088’s framework and will have no effect before Feb. 1, 2021.
•Evictions for nonfinancial reasons may resume October 5, 2020.
13
Residential Eviction Relief –CDC Order
•Moratorium on residential evictions for
nonpayment of rent through Dec. 31, 2020
for tenants who declare they
–Sought all available government rental
assistance
–Meet income qualifications
14
Residential Eviction Relief –CDC Order
–Cannot pay full rent because of income
loss or increased medical expenses
–Paid as much as they could afford to pay
–Would not have a home or would have to
move into close quarters if evicted
15
Residential Eviction Relief –CDC Order
•CDC Order does not
–Relieve a tenant of the obligation to pay
rent
–Preclude eviction for other reasons
–Apply in state or localities with more
protective moratoriums
16
Questions?