HomeMy Public PortalAbout06) 9A - Staff Report - Eviction Moratorium Discussion_staff reportAGENDA
ITEM 9.A.
ADMINISTRATIVE SERVICES DEPARTMENT
MEMORANDUM
DATE: June 2, 2020
TO: The Honorable City Council
FROM: Gregory Murphy, City Attorney
SUBJECT: DISCUSSION OF OPTIONS FOR ORDINANCE NO. 20-1041U, AN
URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TEMPLE CITY TEMPORARILY PROHIBITING EVICTIONS OF
RESIDENTIAL AND COMMERCIAL TENANTS ARISING OUT OF
FINANCIAL IMPACTS OF THE COVID-19 PANDEMIC
RECOMMENDATION:
It is recommended that the City Council:
1. Discuss the effects of the existing moratorium on tenants and landlords in the
City, receive additional information from City staff and the City Attorney; and
2. Give direction regarding actions related to the moratorium, if any, that the City
Council would like brought back for further consideration.
BACKGROUND:
1. On March 4, 2020, the Health Officer of Los Angeles County declared a local health
emergency regarding Novel Coronavirus 2019 (COVID-19) and the Los Angeles
County Board of Supervisors concurrently proclaimed the existence of a loc al
emergency for the County of Los Angeles.
2. On March 4, 2020, Governor Newsom of the State of California declared a State of
Emergency in response to the COVID-19.
3. On March 13, 2020, the President of the United States declared a national state of
emergency regarding COVID-19. On this same day, the City Council adopted
Resolution No. 20-5457, declaring a local state of emergency which gave authority
to the City Manager in his role as Director of Emergency Services to implement
City Council
June 2, 2020
Page 2 of 4
measures in line with state and county health officials’ recommendations to slow the
spread of COVID-19 while not impacting critical services.
4. On March 16, 2020, Governor Newsom issued Executive Order N-28-20 that aided
Californians affected by COVID-19 by authorizing local governments to halt evictions
for renters, encouraging financial institutions to slow foreclosures, and protecting
renters and homeowners against utility shutoffs, with the authority to do so elapsing
on May 31, 2020.
5. On March 19, 2020, Kathryn Barger, Chair of the Los Angeles County Board of
Supervisors issued an Executive Order prohibiting residential and commercial
evictions in the unincorporated portions of the County under certain circumstances
related to COVID-19.
6. On March 21, 2020 the Los Angeles County Department of Public Health issued a
clarifying Safer at Home order, requiring all persons to remain at home to the extent
possible, unless engaged in essential businesses.
7. On March 27, 2020 Governor Newsome issued Executive Order N-37-20 placing a
Statewide moratorium on evictions of residential tenants arising from nonpayment of
rent due to circumstances related to COVID-19; this order and N-28-20 have been
interpreted by the Governor to allow more restrictive orders by local governments.
8. On March 31, 2020 the City adopted an urgency ordinance providing certain eviction
protection for residential and commercial tenants as a result of fi nancial impacts
resulting from the COVID-19 pandemic. The City’s ordinance mirrored the County of
Los Angeles order providing similar protection for tenants in the unincorporated
portions of the County to ensure that residents of the City would have the same level
of protection as that provided in the County.
9. On April 14, 2020, the Los Angeles County Board of Supervisors adopted a revised
eviction protection moratorium order, providing additional protections not set forth in
the existing County order including protection of tenants in any incorporated city
lacking its own moratorium.
10. As of the date of this staff report, the Governor has not extended the authority of
local governments to halt evictions for renters, encouraging financial institutions to
slow foreclosures, and protecting renters and homeowners against utility shutoffs.
ANALYSIS:
As a result of the COVID-19 public health emergency, the initial precautions
recommended by health authorities, and the State and County Safer at Home orders
requiring residents to stay at home and requiring “non -essential” businesses to close
and essential businesses to curtail operations, many residential and commercial tenants
City Council
June 2, 2020
Page 3 of 4
in the City have experienced sudden income loss. Continued economic impacts are
anticipated even with the gradual reopening of some sectors of the economy, leaving
some tenants unable to pay rent and therefore vulnerable to eviction.
Businesses that were temporarily closed by the Safer at Home orders have not been
generating tax revenues needed for public services, and evictions and replacement of
such tenants would delay generation of tax revenues once the Safer at Home orders
are lifted. Further, even businesses that continued in operation as “Essential
Businesses” or that have begun to reopen under modified conditions are still subject to
reductions in income as a result of the Safer at Home orders.
On March 31, the City Council adopted an urgency ordinance pursuant to the authority
granted to local governments by the Governor in Executive Order N-28-20 to prohibit
evictions of residential and commercial tenants due to non -payment of rent during the
period of the moratorium ordinance. Executive Order N-28-20 only authorized local
governments to act until May 31, 2020. The city’s moratorium as adopted is
substantially similar to the March 19 Los Angeles County order as well as moratoria
adopted by cities such as Pasadena, Glendale, Alhambra, and Duarte. A key purpose
of adopting the ordinance in the form the City did was to give its residents and
businesses the same protections that were being granted to tenants in unincorporated
County areas and in other cities in the region. The first protection is simple protection
from losing one’s home or place of business during the pandemic. The second is the
right to negotiate with one’s landlord for a payment plan that will last for up to 6 months
after the end of the moratorium period so that the tenant is not evicted in short order
immediately after the period ends.
From a legal perspective, the ordinance applies to situations in which a tenant cannot
pay rent due to COVID-19 related financial issues. In covered circumstances, the initial
responsibility falls on the tenant to explain to the landlord that the inability to pay stems
from COVID-19 issues. The ordinance provides a tenant with a defense in an eviction
proceeding, which makes such proceedings difficult or fruitless to file as against
covered tenants. The ordinance did not affect evictions unrelated to non-payment of
rent or for which non-payment is not a result of COVID-19 related financial issues.
However, the City Attorney’s office has learned that some landlord’s-rights attorneys
believe that certain language in the ordinance is broad enough to cover such evictions
and they are hesitant to file legal proceedings of any kind on behalf of landlords.
On April 14, 2020, the Los Angeles County Board of Supervisors adopted a revised
eviction protection moratorium order, providing some protections not set forth in the
previous County order on which the City’s moratorium is based. For example, the new
County regulation provides tenants up to 12 mont hs to repay rent not paid during the
moratorium period (the prior order and City ordinance provide 6 months). More
importantly, the new County regulation applies in all areas of the County that do not
otherwise have an eviction protection moratorium , including incorporated cities.
As of the date of this Staff Report, the Governor has not extended Executive Order N -
City Council
June 2, 2020
Page 4 of 4
28-20, nor has he modified Executive Order N-37-20, which prohibited judges and
sheriffs from carrying on eviction proceedings. Therefore, it is presumed that the
Governor’s office finds current protections sufficient. This presumption may change by
the time this matter comes to the City Council, and if it does a verbal report will be given
to explain any changes. In addition, the State Legislature is currently considering
Senate Bill 939, which would legislatively prohibit evictions of commercial tenants for a n
extended period of time, as well as a number of bills seeking to prohibit residential
evictions. If the Legislature acts between the completion of this Staff Report and the
Council hearing this matter, a verbal report of such action will be given.
In reviewing Ordinance No. 20-1041U, the City Attorney’s office has focused on the
following options for the City Council:
If the State has acted to extend the May 31 termination of the City’s authority
over this area, leave the moratorium in place with no changes; or
If the State has so acted, affirmatively revoke the moratorium to allow the
County’s moratorium to govern City residents and businesses; or
If the State has so acted, modify the City’s eviction moratorium; or
If the State has not acted to allow modifications , allow the moratorium to
lapse on its own terms with the understanding that its protections will provide no
further protection for tenants as of November 30, 2020.
CONCLUSION
The City Council is asked to consider the various policy and legal issues raised in this
Staff Report and by members of the public, and to provide City staff and the City
Attorney with direction on whether any further actions should be taken.
CITY STRATEGIC GOALS:
Adoption of the proposed ordinance would align with the City’s strategic goal of good
governance.
FISCAL IMPACT:
There is no fiscal impact arising from the ordinance.