HomeMy WebLinkAboutORD NO. 21-1420U (URGENT TEMPORARY MORATORIUM ON COMMERCIAL EVICTIONS DURING THE COVID 19 PANDEMIC)
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ORDINANCE NO. 21-1420U
AN URGENCY ORDINANCE OF THE CITY OF HERMOSA BEACH CLARIFYING AND EXTENDING THE TEMPORARY COMMERCIAL
AND RESIDENTIAL MORATORIUM ON EVICTIONS DURING THE COVID-19 PANDEMIC AND SETTING FORTH THE FACTS CONSTITUTING SUCH URGENCY
THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Findings.
A. The findings set forth in Ordinance No. 20-1407U, 20-1409U, 20-1414U, 20-1417U, 20-
1420U, and 20-1422Uare still applicable and incorporated herein by reference.
B. The City Council desires to prevent the spread of COVID-19, prevent homelessness and avoid displacement during safer at home orders and during the COVID-19 pandemic and to provide clear and limited bases on which a landlord may endeavor to evict a tenant consistent
with state law.
C. On March 27, 2020 Governor Gavin Newsom issued Executive Order N-37-20, which provides a 60-day extension for tenants to respond to an eviction complaint based on nonpayment of rent. As another indicator of the critical need for residents to remain at home,
this order expressly preserves local authority to enact any public health measure that may
compel an individual to remain physically present in any particular residential property. D. On May 13, 2020, Los Angeles County Department of Public Health issued a new Safer at Home Order for Control of COVID-19, which extended the order for people to remain in
their residences except for essential business and requires all persons to practice physical
distancing of at least six feet apart and wear a cloth face covering whenever they may have contact with people outside their household. On July 4, 2020, given the surge in COVID-19 cases in Los Angeles County, the Department issued a revised order urging residents to remain in their homes as much as practicable. The status of county and state health orders
are still evolving daily. E. On June 30, 2020 Governor Newsom issued Executive Order N-71-20 extending the authorization for local governments to halt evictions of renters impacted by the COVID-19 pandemic through September 30, 2020.
F. On September 1, 2020 Governor Newsom signed Assembly Bill 3088 (AB 3088), which
enacted the COVID-19 Tenant Relief Act of 2020 (“the Act”). Among other things, this law supersedes portions of the City’s temporary moratorium on residential evictions for
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nonpayment of rent and adopts a moratorium through January 31, 2021 so long as tenants comply with the Act’s requirements. The Act provides specific provisions for cities with
existing moratorium ordinances. As a result, the City is restating its urgency ordinance for
the purpose of conforming to the new state law.
G. Effective November 30, 2020, the County Department of Public Health enacted a new Health Officer Order requesting individuals to remain in their homes as much as possible and to avoid crowding and mingling with non-household members. The Order came after many Americans gathered and traveled over the Thanksgiving holiday in the midst of a
winter surge of COVID-19 cases and deaths. According to the County Department of
Public Health, daily peaks are now more than double the County’s peak of daily cases during the summer surge. The region is currently experiencing a surge following the winter holiday season.
H. With Intensive Care Unit (“ICU”) bed capacity rapidly decreasing throughout California,
the Governor of the State of California issued a State Regional Stay at Home Order on
December 3, 2020, that would trigger greater restrictions on a region consisting of multiple counties depending on that region’s ICU hospital bed availability. Once a region has less than 15 percent ICU availability, all counties within the region are required to follow the State Regional Stay at Home Order within 24 hours for at least three weeks.
I. The Southern California Region, which the City of Hermosa Beach is a part of, was at
zero percent ICU capacity on January 15, 2021.
J. On January 5, 2021, the State Public Health Officer issued a new order directing counties
with 10 percent or less of ICU capacity under the Regional Stay at Home Order where the
regional ICU capacity is at 0 percent, to prioritize services to those who are the sickest and cancel or reschedule elective surgeries. The order is intended to reduce pressure on strained hospitals, and redistribute the responsibility of medical care across the state so patients can continue to receive lifesaving care.
K. The situation is unprecedented and evolving rapidly. Further economic impacts are
anticipated, leaving tenants vulnerable to eviction. News reports have cited a UCLA
study last year, which determined that as many as 449,000 people in L.A. County could face eviction due to the economic slump caused by the COVID-19 pandemic and tenants' inability to pay rent.
L. The intent of this Ordinance is to extend the existing deadlines for the existing local commercial and residential eviction moratorium through March 31, 2021 and longer dates
as may be permitted under state law.
M. This Ordinance is adopted pursuant to the City's police powers and powers afforded to the
City in the time of a national, state, county and local emergency during an unprecedented health pandemic, such powers being afforded by the State Constitution, State law and
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HBMC Chapter 2.56 to protect the peace, health, and safety of the public. The Hermosa Beach City Council finds that this ordinance is necessary for the preservation of the public
peace, health, and safety of residents living within the City and finds urgency to approve this
ordinance immediately based on the facts described herein and detailed in the staff report. Under Government Code Section 8634, this ordinance is necessary to provide for the protection of health, life and property.
SECTION 2. The Temporary Moratorium on Evictions for Non-Payment of Rent by Commercial
Tenants Impacted by the COVID-19 Crisis, as most recently amended in Urgency Ordinance No. 20-142OU, is amended and restated in full as follows: A. During the moratorium period declared in response to COVID-19, no commercial
landlord shall endeavor to evict a tenant for nonpayment of rent provided the tenant demonstrates
that (1) the tenant’s businesses is subject to the Orders referenced in Section 1 above or is otherwise limited or closed (voluntarily or by mandate) to prevent or reduce the spread of COVID-19, and (2) the tenant demonstrates lost income and inability to pay rent as a result of such limitation or closure or other demonstrated financial impact related to COVID-19. For purposes of this Section 2, the
moratorium period is March 16, 2020 through March 31, 2021.
B. A landlord knows of a tenant’s lost income and inability to pay rent within the meaning of this Section 2 if the tenant, within 30 days after the date rent is due, notifies the landlord in writing of the lost income and inability to pay rent due to a limitation or closure of the tenant’s business
related to COVID-19, and provides appropriate supporting documentation within 30 days of
providing the notice. Notice and documentation required under this ordinance shall be provided for each month that tenant is unable to pay rent. If a tenant suffers only a partial loss of net income, the tenant shall pay the pro-rated share of their rent that corresponds to the net income they generated during the period of loss. For purposes of this Section 2, “in writing” includes email or text
communications to a landlord or the landlord’s representative with whom the tenant has previously
corresponded by email or text. All financial information provided to the landlord shall be kept in confidence and only used for evaluating the tenant’s claim or enforcing this provision. C. This Section 2 grants a defense in the event that an unlawful detainer action is
commenced in violation of this ordinance. Violation of this ordinance shall be punishable as set
forth in Chapter 2.56 of the Hermosa Beach Municipal Code. D. Nothing in this Section 2 shall relieve the tenant of liability for the unpaid rent, which the landlord may seek after expiration of the moratorium period, and which tenant must pay within
six months of the expiration of the moratorium period (i.e. no later than September 31, 2021). A
landlord may not charge or collect a late fee or interest for rent that is delayed for the reasons stated in this Section 2; nor may a landlord seek rent that is delayed for the reasons stated in this Section 2, through the eviction process during or after the moratorium period. A landlord shall not commence an eviction during the six months after the end of the moratorium period for non-payment
of rent, so long as the tenant pays rent in a timely manner after the moratorium period and is repaying
the past due rent that accrued during the moratorium period. Nonpayment of rent in accordance with the terms of this Section shall not be grounds for eviction of a commercial tenant even after expiration of the moratorium period. Landlords are strongly encouraged to offer payment plans to
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tenants after the period of local emergency, which may go beyond the six-month repayment period upon mutual agreement of the parties. The security deposit may be used at any time, including
during the repayment period, to pay back rent and such security deposit shall be replenished by the
end of the repayment period or longer if mutually agreed upon in writing between the parties. E. During the moratorium period declared in response to COVID-19, no commercial landlord shall terminate a tenancy to demolish or substantially remodel the commercial real property
unless and until the landlord secures all permits necessary to perform the work. For purposes of this
Subsection, “substantially remodel” means to make a modification of the property that requires a permit from the City. This ordinance shall apply to tenancy termination notices, notices to quit and other eviction notices, and the unlawful detainer actions based on such notices, served or filed on or before the effective date of this ordinance; but, where the time to vacate the property has not
passed.
F No other legal remedies available to a commercial landlord are affected by this ordinance.
SECTION 3. The Temporary Moratorium on Evictions for Non-Payment of Rent by Residential
Tenants Impacted by the COVID-19 Crisis, as most recently amended in Urgency Ordinance No. 20-1422U, is clarified as needed to comport with state law and restated in full as follows: A. With respect to residential evictions for non-payment of rent due to financial impacts
from COVID-19, the following applies:
1. The “repayment period” for deferred rent that came or will come due between March 1, 2020 through January 31, 2021, or any later date as may be determined by applicable state law (defined under the Act as “COVID-19 rental debt”), inclusive, is October 1, 2020 through March
31, 2021.
2. For the period of time of March 16, 2020 through September 30, 2020 (the “local moratorium period”), no residential landlord shall endeavor to evict a tenant for nonpayment of rent, if the tenant demonstrates that the tenant is unable to pay rent due to financial impacts related to
COVID-19, subject to subparagraphs (a) and (b) below. A landlord shall not commence an eviction
during the six months after the end of the local moratorium period, so long as the tenant pays rent in a timely manner after the local moratorium period and is repaying the past due rent that accrued during the moratorium period. A landlord may not charge or collect a late fee or interest for rent that is delayed for the reasons stated in this Paragraph 2. The parties may agree in writing to a
longer repayment plan or reduced rental obligation in accordance with the Act.
(a) A landlord who knows that a tenant cannot pay some or all of the rent temporarily due to financial impacts related to COVID-19 shall not serve a notice pursuant to CCP 1161(2), file or prosecute an unlawful detainer action based on a 3-day pay or quit notice, or otherwise seek to
evict for nonpayment of rent. A landlord knows of a tenant’s inability to pay rent within the meaning
of this ordinance if the tenant, within 30 days after the date that rent is due, notifies the landlord in writing of lost income and inability to pay full rent due to financial impacts related to COVID-19, and provides documentation or an explanation within 30 days of the notice to support the claim. For
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purposes of this ordinance, “in writing” includes email or text communications to a landlord or the landlord’s representative with whom the tenant has previously corresponded by email or text. Any
medical or financial information provided to the landlord shall be held in confidence, and only used
for evaluating the tenant’s claim. (b) For purposes of this Paragraph 2, “financial impacts related to COVID-19” include, but are not limited to, tenant lost household income as a result of any of the following: (1) being
sick with COVID-19, or caring for a household or family member who is sick with COVID-19; (2)
lay-off, loss of hours, or other income reduction resulting from business closure or other economic or employer impacts of COVID-19; (3) compliance with a recommendation from a government health authority to stay home, self-quarantine, or avoid congregating with others during the state of emergency; (4) extraordinary out-of-pocket medical expenses; or (5) child care needs arising from
school closures related to COVID-19.
(c) Other legal remedies available to landlords are not affected by this Paragraph 2. 3. For the period of time of October 1, 2020 through January 31, 2021, or any later date as
may be determined by applicable state law, tenants shall follow the preconditions for eviction
protection under the Act to receive eviction protection, which include providing a declaration of hardship to their landlord within 15 days of receipt of an eviction notice and payment of partial rent (25% of all rent that came due from October 1, 2020 through January 31, 2021, or any later date as may be determined by applicable state law). Tenants shall repay the remaining rent due by the end
of the repayment period.
4. Landlords are encouraged to offer payment plans to tenants, and any agreement between landlord and tenant to allow longer repayment periods or reduced rental obligations shall be in compliance with the Act.
5. Tenants may draw down on a security deposit at any time to pay back rent and such security deposit shall be replenished by the end of the repayment period on March 31, 2021 upon mutual agreement of the parties.
6. In accordance with the Act, tenants that comply with the terms of this ordinance have a
defense from eviction and the corresponding rental obligations will not be deemed past due until the close of the repayment period set out above. 7. Forthe period of December 8, 2020 through March 31, 2021, no residential landlord shall
terminate a tenancy to demolish or substantially remodel the residential real property unless and
until the landlord secures all permits necessary to perform the work. For purposes of this Section, “substantially remodel” means to make a modification of the property that requires a permit from the City. This ordinance shall apply to tenancy termination notices, notices to quit and other eviction notices, and the unlawful detainer actions based on such notices, served or filed on or before
December 8, 2020; but, where the time to vacate the property has not passed.
(a) To the extent applicable, landlords must provide relocation assistance and satisfy other requirements in accordance with the Tenant Protection Act of 2019 (Cal. Civil Code § 1496.2) for a no-fault just cause eviction.
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(b) No other legal remedies available to landlords are affected by this Paragraph 7.
. SECTION 4. In order to prevent inconsistencies, the Director of Emergency Services may suspend the effectiveness of any provision in this ordinance in the event that the President of the United States, Congress, Governor of the State of California or California State Legislature or other body with jurisdiction adopts an order or legislation that similarly prohibits evictions and foreclosures for
failure to pay rent by individuals impacted by the COVID-19 crisis.
SECTION 5. Severability. If any section, subsection, sentence, clause, phrase or word of this ordinance is found to be
unconstitutional or otherwise invalid by any court of competent jurisdiction, such decision shall not
affect the remaining provisions of this Ordinance. SECTION 6. Environmental Review.
The City Council finds that adoption and implementation of this ordinance is not a “project” for
purposes of the California Environmental Quality Act (CEQA), as that term is defined by CEQA guidelines (Guidelines) sections 15061(b)(3), and 15378(b)(5). The effect of the proposed amendment will be to maintain the status quo and extend the existing urgency ordinance for an additional period of time. No new development will result from the proposed action. No impact to
the physical environment will result. The City Council also alternatively finds that the adoption and
implementation of this ordinance is exempt from the provisions of CEQA as an administrative activity by the City of Hermosa Beach, in furtherance of its police power, that will not result in any direct or indirect physical change in the environment, per sections 15061(b)(3), and 15378(b)(5) of the CEQA Guidelines, as well as CEQA Guidelines section 15064(e) (economic regulations).
SECTION 7. Urgency Declaration; Effective Date. The City Council finds and declares that the adoption and implementation of this ordinance is necessary for the immediate preservation and protection of the public peace, health and safety as
detailed above and as the City and public would suffer potentially irreversible displacement of
commercial and residential tenants resulting from evictions for failure to pay rent during the COVID-19 crisis. During this local emergency, and in the interest of protecting the public health and preventing transmission of COVID-19, it is essential to avoid unnecessary housing displacement, to protect the City’s affordable housing stock, and to prevent housed individuals from
falling into homelessness, especially given state and county directives to stay at home. Promoting
stability amongst commercial tenancies is also conducive to public health, allowing businesses to follow the advice and directives of public health officials to close and allowing employees to avoid public contact during times of a public health crisis without fear of imminent eviction or foreclosure. Loss of income as a result of COVID-19 may inhibit City residents and businesses from fulfilling
their financial obligations, including payment of rent. This ordinance reflects the statewide
approach to residential eviction protection, while maintaining important and impactful local provisions. The City’s existing commercial and portions of the residential moratorium period expire on January 31, 2021. This urgency ordinance is needed during the emergency in the interest of
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protecting the public health and preventing transmission of COVID-19, to avoid unnecessary housing displacement, to protect the City’s affordable housing stock, and to prevent housed
individuals from falling into homelessness, especially given state and county directives to stay at
home. Under Government Code Section 8634 and HBMC Chapter 2.56, this ordinance is necessary to provide for the protection of life and property for the reasons set out herein. The Council therefore finds and determines that the immediate preservation of the public peace, health and safety, and protection of life and property, require that this Ordinance be enacted as an urgency ordinance
pursuant to Government Code section 36937 and take effect immediately upon adoption by four-
fifths of the City Council. SECTION 8. Certification.
The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same,
or the summary thereof, to be published or posted in the manner required by law. PASSED, APPROVED and ADOPTED this 26th day of January, 2021 by the following vote:
_________________________________________________________________________
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM: ____________________________________ ____________________________________ Eduardo Sarmiento, City Clerk Michael Jenkins, City Attorney