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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. 3 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 5 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. 7 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. 11 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. 13 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. 15 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. 17 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. 19 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. 21 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. 23 Sept. 15, 2020 Item #8 Page 37 of 71 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. 25 Sept. 15, 2020 Item #8 Page 39 of 71 (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, 27 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, 29 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, 31 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. 33 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 VerDate Sep<11>2014 16:42 Sep 03, 2020 Jkt 250001 PO 00000 Frm 00042 Fmt 4703 Sfmt 4703 E:\FR\FM\04SEN1.SGM 04SEN1jbell on DSKJLSW7X2PROD with NOTICESSept. 15, 2020 Item #8 Page 67 of 71 55294 Federal Register /Vol. 85, No. 173/Friday, September 4, 2020/Notices 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 VerDate Sep<11>2014 16:42 Sep 03, 2020 Jkt 250001 PO 00000 Frm 00043 Fmt 4703 Sfmt 4703 E:\FR\FM\04SEN1.SGM 04SEN1jbell on DSKJLSW7X2PROD with NOTICESSept. 15, 2020 Item #8 Page 68 of 71 55295 Federal Register /Vol. 85, No. 173/Friday, September 4, 2020/Notices 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 VerDate Sep<11>2014 16:42 Sep 03, 2020 Jkt 250001 PO 00000 Frm 00044 Fmt 4703 Sfmt 4703 E:\FR\FM\04SEN1.SGM 04SEN1jbell on DSKJLSW7X2PROD with NOTICESSept. 15, 2020 Item #8 Page 69 of 71 55296 Federal Register /Vol. 85, No. 173/Friday, September 4, 2020/Notices 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 VerDate Sep<11>2014 16:42 Sep 03, 2020 Jkt 250001 PO 00000 Frm 00045 Fmt 4703 Sfmt 4703 E:\FR\FM\04SEN1.SGM 04SEN1jbell on DSKJLSW7X2PROD with NOTICESSept. 15, 2020 Item #8 Page 70 of 71 55297 Federal Register /Vol. 85, No. 173/Friday, September 4, 2020/Notices 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. lllll Signature of Declarant Date lllll 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 VerDate Sep<11>2014 16:42 Sep 03, 2020 Jkt 250001 PO 00000 Frm 00046 Fmt 4703 Sfmt 9990 E:\FR\FM\04SEN1.SGM 04SEN1jbell on DSKJLSW7X2PROD with NOTICESSept. 15, 2020 Item #8 Page 71 of 71 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?