Loading...
HomeMy Public PortalAbout02) 5A - Staff Report - County Eviction Moratorium discussion staff report 4812-9457-2485 v.1MANAGEMENT SERVICES DEPARTMENT MEMORANDUM DATE: July 29, 2020 TO: The Honorable City Council FROM: Gregory Murphy, City Attorney SUBJECT: DISCUSSION OF COUNTY EVICTION MORATORIUM AND POTENTIAL RESPONSE TO COUNTY REQUEST FOR COMMENTS RECOMMENDATION: It is recommended that the City Council: 1.Discuss the County of Los Angeles’ eviction moratorium and tenant protections and the County’s request for incorporated cities to provide feedback on the County’s proposed terms; and 2.Give direction regarding whether the City of Temple City wishes to provide a formal response or take a position on the County’s moratorium . BACKGROUND: 1.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. 2.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. 3.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. AGENDA ITEM 5.A. City Council July 7, 2020 Page 2 4. On March 31, 2020, the City adopted Urgency Ordinance No. 20-1041U providing certain eviction protection for residential and commercial tenants as a result of financial 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. 5. On July 7, 2020, the City Council adopted Urgency Ordinance No. 20-1045U, clarifying that “no fault” evictions under the City’s moratorium apply solely to situations in which COVID-19 financial effects have been proven by tenants and setting September 30 as the termination date for the moratorium, meaning that March 30, 2021 would be soonest that evictions arising from COVID-related financial effects could commence. 6. On July 21, the County Board of Supervisors voted to extend the County’s moratorium through September 30. The Supervisors also directed County Staff to study whether the County’s moratorium should serve as a “baseline” in incorporated cities, meaning that the County moratorium would supersede any city moratorium that gave lesser protections to tenants. 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 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. At the meeting of July 7, the City Council discussed the City’s eviction moratorium. The Council considered the socioeconomic makeup of Temple City, the effects of the existing moratorium within the City, and the balance between the immediate financial needs of tenants and the longer-term risk to landlords. After discussing the item, the City Council voted to adopt Urgency Ordinance No. 20-1045U with changes to reflect that balance as applied to the tenants and landlords of Temple City. On July 21, the County of Los Angeles was scheduled to hear a modification to its eviction moratorium and tenant protections. The modification would have done two things: (a) extend the life of the moratorium until S eptember 30, and (b) make the County’s eviction protections the “baseline” for tenants throughout the County, even in incorporated cities. The Supervisors voted to extend the life of the moratorium, but on the motion of Supervisor Barger directed staff to study the effects of making the County’s protections the “baseline” in incorporated cities. City Council July 7, 2020 Page 3 It should be noted that the County’s other protections, including a ban on rent increases, are not proposed to be applied in incorporated cities. It should also be noted that the various Supervisors spoke specifically about protecting commercial tenants, about having consistency for tenants throughout the County, about understanding the nature of different localities having different issues, and about studying whe ther setting a “baseline” would affect a great number of incorporated cities and if so, in what ways. On July 23, County staff reached out to the City “to understand how your city would feel if this particular provision were to be enacted” and get any City input or comments. As the eviction moratorium was the subject of substantial City Council discussion and represents a policy determination by the City Council, staff seeks direction from the City Council on whether to respond to County staff, and if so what the substance of the response should be. The City Council is asked to consider the various policy and legal issues involved in having the County’s moratorium serve as a “baseline” in the City and direct staff as to a response to the County, if any. CITY STRATEGIC GOALS: Review of this matter and direction to staff would align with the City’s strategic goal of good governance. FISCAL IMPACT: There is no fiscal impact arising from this matter. ATTACHMENTS: A. Urgency Ordinance No. 20-1045U B. County Eviction Moratorium, draft July 21, 2020 ATTACHMENT A ORDINANCE NO. 20-1045U AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY MODIFYING THE CITY’S TEMPORARY PROHIBITION ON EVICTIONS OF RESIDENTIAL AND COMMERCIAL TENANTS ARISING OUT OF FINANCIAL IMPACTS OF THE COVID-19 PANDEMIC WHEREAS, on March 4, 2020, Governor Gavin Newsom proclaimed a state of emergency within the State of California ("State") due to the threat posed by Novel Coronavirus ("COVID-19"); WHEREAS, on March 4, 2020, the Los Angeles County Health Officer issued a Declaration of Local Health Emergency due to the introduction of COVID-19 cases to Los Angeles County; WHEREAS, on March 4, 2020, Los Angeles County Board of Supervisors ("Board") concurred and issued a Proclamation ("Proclamation") declaring a local emergency within the County of Los Angeles regarding the imminent spread of COVID-19; WHEREAS, on March 16, 2020, Governor Newsom issued an Executive Order that will aid 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; WHEREAS, on March 19, 2020 Governor Newsom issued an Executive Order that requires all persons to remain at home to the extent possible and requires all non-essential businesses to be closed; WHEREAS, 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; which order has twice been modified by the Board of Supervisors to extend its scope and its duration; WHEREAS, 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; WHEREAS, on March 27, 2020 Governor Newsome issued an Executive Order placing a Statewide moratorium on evictions of residential tenants arising from nonpayment of rent due to circumstances related to COVID-19, but that has been interpreted by the Governor to allow more restrictive orders by local governments; WHEREAS, businesses that are temporarily closed by the Safer at Home orders are not generating tax revenues needed for public services, and evictions and replacement of such tenants will further delay generation of tax revenues once the Safer at Home orders are lifted. Further, even businesses that continue in operation as “Essential Businesses” such as restaurants, are still subject to reductions in income as a result of the “Safer at Home” orders; WHEREAS, California Government Code section 8630 et seq. authorize the City to declare a local emergency, which the City Council did at an emergency meeting on March 13, 2020; WHEREAS, California Government Code sections 8634, 36934 and 36937 authorize the City Council to take action by ordinance to take effect immediately for the preservation of the public peace, health or safety when adopted by a four-fifths vote of the City Council; WHEREAS, as a result of the COVID-19 public health emergency and the precautions recommended by health authorities, many residential and commercial tenants in the City have experienced Ordinance No. 20-1045U Page 2 of 4 or expect to experience sudden and unexpected income loss; WHEREAS, further economic impacts are anticipated, leaving residential and commercial tenants potentially unable to pay rent and vulnerable to eviction; WHEREAS, 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, and prevent housed individuals from falling into homelessness; WHEREAS, during this local emergency, and in the interest of protecting the public health and welfare, it is essential to avoid unnecessary loss of commercial tenants that could create long-term vacancies in commercial areas leading to blight and a loss of important community amenities even after the emergency has ended; WHEREAS, on March 31, 2020 the City Council did take action to adopt Ordinance No. 20-1041U, a moratorium that prohibits evictions of residential and commercial tenants during the local emergency that was consistent with the original moratorium adopted by the County of Los Angeles; WHEREAS, the term of the moratorium is set to be through May 31, 2020 or until such time as the State of California and Los Angeles County public health orders are lifted, whichever is later; WHEREAS, those public health orders have been substantially modified to allow many businesses to resume operations (albeit in a modified fashion) but the orders do not currently appear to be approaching any end date such that termination date for the City’s moratorium cannot be predicted; WHEREAS, some jurisdictions that have adopted similar moratoria have clarified certain language in the moratoria to ensure that only tenants affected by COVID-19 are offered the protections thereof, as a means by which to balance the moratoria’s impacts on tenants with their impacts on landlords; WHEREAS, on June 2 the City Council considered the status of the moratorium and directed that clarifying language be drafted to balance the moratorium’s impacts on tenants and landlords and that an investigation into a suitable end date for the moratorium be carried out in order to provide certainty to tenants and landlords within the City. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMPLE CITY DOES ORDAIN AS FOLLOWS: SECTION 1. A temporary moratorium on eviction for non-payment of rent by residential or commercial tenants impacted by the COVID-19 crisis is imposed as set forth herein; Ordinance No. 20-1041U is hereby superseded and therefore rescinded and of no further force or effect. SECTION 2. From the date of this Ordinance through its expiration, as set forth herein, in response to COVID-19 no 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. SECTION 3. A landlord who knows or is deemed to know that a tenant cannot pay some or all of the rent temporarily for the reasons set forth above in Section 2 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. SECTION 4. A landlord shall be deemed to know of a tenant’s inability to pay rent within the meaning of this Ordinance if the tenant, within 7 days after the date that rent is due, notifies the landlord in writing and provides sufficient documentation that the tenant is unable to pay rent due to Financial Impacts related to COVID-19. For 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 Ordinance No. 20-1045U Page 3 of 4 text, as well as traditional written communication. Any medical or financial information provided to the landlord shall be held in confidence, and only be used for evaluating the tenant’s claim. SECTION 5. Nothing in this Ordinance shall relieve the tenant of liability for the unpaid rent, nor restrict a landlord’s ability to recover rent due nor alter any obligations or rights of a landlord or tenant except as expressly set forth herein. A tenant shall not be deemed in default of rent payment obligations unless the Tenant fails to tender rent payments which were unpaid due to Financial Impacts related to COVID-19, within 6 months of September 30, 2020. A landlord shall not impose, charge, or collect a late fee or equivalent surcharge for any rent payments which were unpaid due to Financial Impacts related to COVID- 19. Tenants and landlords are encouraged to agree to a payment plan during this six-month period, but nothing in this Ordinance shall be construed to prevent a tenant from paying a landlord any amount due incrementally during this six-month period. Any three-day notices to pay or quit or no-fault eviction notices served prior to the effective date of this ordinance, but not yet expired, are automatically deemed served upon the conclusion of the Moratorium Period if arising from Financial Impacts related to COVID-19. SECTION 6. For purposes of this Ordinance, “Financial Impacts related to COVID-19” (“Financial Impact”) include nonpayment of rent arising out of a substantial decrease in household or business income (including, but not limited to, a substantial decrease in household income caused by layoffs or a reduction in the number of compensable hours of work, or a substantial decrease in business income caused by a reduction in opening hours or consumer demand), or substantial out-of-pocket medical expenses, or a tenant’s lost household income as a result of caring for minor children affected by school, pre-school and/or childcare closures; provided that, the Financial Impact was caused by the COVID-19 pandemic, or by any local, state or federal government response to COVID-19, and is documented by the tenant. SECTION 7. This Ordinance applies only to terminations of tenancies for nonpayment of rent arising from Financial Impacts related to COVID-19, including eviction notices, no-fault eviction notices as defined herein, and unlawful detainer actions based on such notices, served or filed during the effective period of this Ordinance and for six months thereafter. For purposes of this Ordinance, “no-fault eviction notices” refer to any eviction for which the notice to terminate tenancy is not based on alleged fault by the tenant but for which a tenant can show Financial Impacts related to COVID-19 and can show that the landlord knew or was deemed to know about the Financial Impacts related to COVID-19 pursuant to this Ordinance prior to initiating termination proceedings. SECTION 8. In the event of a violation of this Ordinance, this Ordinance grants a defense to eviction where an unlawful detainer action is commenced in violation of this Ordinance. Additionally, an aggrieved tenant may institute a civil proceeding for injunctive relief, money damages of not less than three times actual damages, and whatever other relief the court deems appropriate. The prevailing party shall be entitled to reasonable attorney's fees and costs pursuant to ordinance of the court. The remedy available under this section shall be in addition to any other existing remedies which may be available to the tenant under local, state or federal law. SECTION 9. This Ordinance shall be in force and effect until September 30, 2020. Should the Governor, the State or Federal Legislature, or the President issue an order or regulation on the topic of this Ordinance which provides eviction protection that applies Statewide or nationwide, this Ordinance shall be of no further force or effect. SECTION 10. If any provision of this Ordinance is found to be unconstitutional or otherwise invalid by any court of competent jurisdiction, that invalidity shall not affect the remaining provisions of this chapter which can be implemented without the invalid provisions, and to this end, the provisions of this chapter are declared to be severable. The City Council hereby declares that it would have adopted this ordinance and each provision thereof irrespective of whether any one or more provisions are found invalid, unconstitutional or otherwise unenforceable. SECTION 11. The City Clerk shall certify the adoption of this ordinance and shall cause this ordinance to be published by title and summary in the manner required by law. Ordinance No. 20-1045U Page 4 of 4 SECTION 12. For the reasons set forth above in the recitals, this Ordinance is an urgency ordinance and shall take effect immediately upon adoption by a 4/5 vote of the City Council, due to the immediate need to protect the public health, safety and welfare. Signed and approved this 7th day of July, 2020. Thomas Chavez, Mayor ATTEST: Peggy Kuo, City Clerk Gregory Murphy, City Attorney I HEREBY CERTIFY that the foregoing ordinance was adopted by the City Council of the City of Temple City at its meeting held on the 7th day of July, 2020 by the following vote: AYES: Councilmember: Man, Vizcarra, Yu, Chavez NOES: Councilmember: None RECUSED: Councilmember: Sternquist ABSTAIN: Councilmember: None Peggy Kuo, City Clerk MOTION SOLIS __________________________ RIDLEY-THOMAS __________________________ KUEHL __________________________ HAHN __________________________ BARGER __________________________ AGN. NO.____ MOTION BY SUPERVISORS SHEILA KUEHL AND HILDA SOLIS July 21, 2020 Extending Eviction Moratorium Through September 30, 2020 and Establishing County’s Eviction Protections as Baseline in Incorporated Cities The County of Los Angeles continues to face an unprecedented public health and economic crisis due to the novel coronavirus (COVID-19) pandemic. The Board has responded with a series of emergency orders to provide timely and necessary relief to tenants facing socio-economic and health impacts due to the COVID-19 pandemic. On March 19, 2020, the Chair of the Board of Supervisors (Board) issued an Executive Order imposing a temporary moratorium on evictions for non-payment of rent by residential or commercial tenants impacted by COVID-19 in the unincorporated areas, commencing March 4, 2020, through May 31, 2020, and further extended through July 31, 2020 (Eviction Moratorium). This Board has determined to reevaluate the exte nsion of the Eviction Moratorium every thirty (30) days. Further, on June 30, 2020, Governor Newsom extended the timeframe for the protections set forth in Executive Order N-28-20, that authorized local governments to halt evictions for renters impacted by the COVID-19 pandemic, through September 30, 2020. ATTACHMENT B However, as emergency protections are reinstated and businesses closed, many tenants may find themselves in deeper financial debt, resulting in a likely surge of evictions for nonpayment of rent. Further complicating matters is the uncertainty about the length and depth of the pandemic. These unpredictable conditions continue to impact the regional and economic recovery efforts centered on fluctuating public health stay-at-home orders. Many workers remain unemployed and underemployed, while businesses on the brink of re-opening are once again forced to close due to recent spikes in the number of coronavirus cases in the County and rolling back on reopening of businesses statewide. Consequently, it is estimated that over 360,000 tenant households in Los Angeles are in imminent danger of eviction displacement with the lifting of eviction moratoria. The Board will not be able reevaluate the County's Eviction Moratorium until the September 15, 2020 Board meeting, as such, it is determined that an emergency continues to exist within the County, threatening the lives, property and welfare of its constituents, thereby creating the need to extend the Moratorium Period through September 30, 2020. Additionally, the County's Eviction Moratorium differs from some of the local moratoria adopted by incorporated cities. In some instances, the County's Eviction Moratorium is more comprehensive and offers greater tenant protections to help tenants remain housed while the applicable stay-at-home order and other public health orders are in place. To help ensure greater consistency among the jurisdictions, while maximizing tenant protections during this public health crisis, the County's eviction protections should be established as the baseline for all incorporated cities within Los Angeles County even in cities that have local eviction moratoria, if they do not include the same or greater tenant protections as the County's Eviction Moratorium. For the foregoing reasons, the Board of Supervisors finds it is in the public's interest to prevent the displacement of tenants in the County due to the COVID -19 pandemic to the extent permitted by law. WE THEREFORE MOVE that the Board of Supervisors adopt the attached Resolution further amending and restating the Executive Order to extend the County's Eviction Moratorium through September 30, 2020, unless further extended or repealed by the Board, and establishing the County's eviction protections as the baseline for all incorporated cities within Los Angeles County to the extent that the cities' eviction moratoria do not include the same or greater tenant protections as the provisions of the County's Eviction Moratorium. S:MR/ExtendingEvictionMoratoriumThroughSeptember30,2020AndEstablishingCounty’sEvictionProtectionsAsBaselineInIncorporate dCities HOA 102929855_4 1 RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES FURTHER AMENDING AND RESTATING THE EXECUTIVE ORDER FOR AN EVICTION MORATORIUM DURING EXISTENCE OF A LOCAL HEALTH EMERGENCY REGARDING NOVEL CORONAVIRUS (COVID -19) WHEREAS, on March 4, 2020, the Chair of the Los Angeles County Board of Supervisors ("Board") proclaimed, pursuant to Chapter 2.68 of the Los Angeles County Code, and the Board ratified that same day, the existence of a local emergency because the County of Los Angeles ("County") is affected by a public calamity due to conditions of disaster or extreme peril to the safety of persons and property arising as a result of the introduction of the novel coronavirus ("COVID-19") in Los Angeles County; WHEREAS, also on March 4, 2020, the County Health Officer determined that there is an imminent and proximate threat to the public health from the introduction of COVID-19 in Los Angeles County, and concurrently declared a Local Health Emergency; WHEREAS, ensuring that all people in the County continue to have access to running water during this public health crisis will enable compliance with public health guidelines advising people to regularly wash their hands, maintain access to clean drinking water, help prevent the spread of COVID -19, and prevent or alleviate illness or death due to the virus; WHEREAS, ensuring that all customers in the County that receive power services from Southern California Edison and Southern California Gas Company (collectively, "Public Utilities") continue to have access to electricity so they are able to receive important COVID-19 information, keep critical medical equipment functioning, and utilize power, as needed, will help to prevent the spread of COVID -19 and prevent or alleviate illness or death due to the virus; WHEREAS, on March 13, 2020, the Public Utilities announced that they will be suspending service disconnections for nonpayment and waiving late fees, effective immediately, for residential and business customers impacted by the COVID -19 emergency; WHEREAS, on March 16, 2020, Governor Newsom issued Executive Order N-28- 20 that authorizes local governments to halt evictions of renters, encourages financial institutions to slow foreclosures, and protects renters and homeowners against utility shutoffs for Californians affected by COVID-19; WHEREAS, on March 19, 2020, the Chair of the Board issued an Executive Order ("Executive Order") that imposed a temporary moratorium on evictions for non -payment of rent by residential or commercial tenants impacted by COVID-19 ("Moratorium"), commencing March 4, 2020 through May 31, 2020 ("Moratorium Period"); WHEREAS, on March 21, 2020, due to the continued rapid spread of COVID -19 and the need to protect the community, the County Health Officer issued a revised Safer HOA 102929855_4 2 at Home Order for Control of COVID-19 ("Safer at Home Order") prohibiting all events and gatherings and closing non-essential businesses and areas until April 19, 2020; WHEREAS, on March 27, 2020, Governor Newsom issued Executive Order N-37- 20 extending the period for response by tenants to unlawful detainer actions and prohibiting evictions of tenants who satisfy the requirements of Executive Order N-37-20; WHEREAS, on March 31, 2020, the Board ratified the Chair's Executive Order and amended the ratified Executive Order to include a ban on rent increases in the unincorporated County to the extent permitted by State law and consistent with Chapter 8.52 of the County Code; WHEREAS, on April 6, 2020, the California Judicial Council, the policymaking body of the California courts, issued eleven temporary emergency measures, of which Rules 1 and 2 effectively provide for a moratorium on all evictions and judicial foreclosures; WHEREAS, on April 14, 2020, the Board further amended the Executive Order to: expand the County's Executive Order to include all incorporated cities with the County; include a temporary moratorium on eviction for non -payment of space rent on mobilehome owners who rent space in mobilehome parks; include a ban on rent increases in the unincorporated County to the extent permitted by State law and consistent with Chapters 8.52 and 8.57 of the County Code; and enact additional policies and make additional modifications to the Executive Order; WHEREAS, COVID-19 is causing, and is expected to continue to cause, serious financial impacts to Los Angeles County residents and businesses, including the substantial loss of income due to illness, business closures, loss of employment, or reduced hours, impeding their ability to pay rent; WHEREAS, displacing residential and commercial tenants who are unable to pay rent due to such financial impacts will worsen the present crisis by making it difficult for them to comply with the Safer at Home Order, thereby placing tenants and many others at great risk; WHEREAS, while it is the County's public policy and intent to close certain businesses to protect public health, safety and welfare, the County recognizes that the interruption of any business will cause loss of, and damage to, the business. Therefore, the County finds and declares that the closure of these businesses is mandated for the public health, safety and welfare; the physical loss of, and damage to, businesses is resulting from the shutdown; and these businesses have lost the use of their property and are not functioning as intended; WHEREAS, because homelessness and instability can exacerbate vulnerability to, and the spread of, COVID-19, the County must take measures to preserve and HOA 102929855_4 3 increase housing security and stability for Los Angeles County residents to protect public health; WHEREAS, a County-wide approach to restricting displacement is necessary to accomplish the public health goals of limiting the spread of the COVID -19 virus as set forth in the Safer at Home Order; WHEREAS, based on the County's authority during a state of emergency pursuant to Government Code section 8630 et seq. and Chapter 2.68 of the County Code, the County may issue orders to all incorporated cities within the County to provide for the protection of life and property, where necessary to preserve the public order and safety; WHEREAS, due to the continued, rapid spread of COVID-19 and the need to preserve life and property, the County has determined that continued evictions in the County and all of its incorporated cities during this COVID-19 crisis would severely impact the health, safety and welfare of County residents; WHEREAS, loss of income as a result of COVID-19 may hinder County residents and businesses from fulfilling their financial obligations, including paying rent and making public utility payments, such as water and sewer charges; WHEREAS, on May 12, 2020, the Board approved, and delegated authority to the Chair to execute, an Amended and Restated Executive Order that extends the Moratorium Period through June 30, 2020, unless further extended or repealed by the Board, and incorporates additional provisions, subject to approval as to form by County Counsel; WHEREAS, on May 12, 2020, the Board determined to reevaluate the Executive Order every thirty (30) days to consider further extensions; WHEREAS, on June 23, 2020, the Board extended the Moratorium Period through July 31, 2020; WHEREAS, on June 30, 2020, Governor Newsom issued Executive Order N-71- 20, extending the timeframe for the protections set forth in Executive Order N-28-20, that authorized local governments to halt evictions for renters impacted by the COVID -19 pandemic, through September 30, 2020; WHEREAS, in the interest of public health and safety, as affected by the emergency caused by the spread of COVID-19, it is necessary for the Board to adopt this Resolution Further Amending and Restating the Executive Order for an Eviction Moratorium ("Resolution") related to the protection of life and property; WHEREAS, the Board determined that an emergency continues to exist within the County threatening the lives, property and welfare of the County and its constituents ; and HOA 102929855_4 4 WHEREAS, to help ensure greater consistency among the jurisdictions, while maximizing tenant protections during this public health crisis, the County's eviction protections should be established as the baseline for all incorporated cities within Los Angeles County even in cities that have their own local eviction moratoria, if they do not include the same or greater tenant protections as the County's Moratorium. NOW, THEREFORE, THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES DOES HEREBY PROCLAIM, RESOLVE, DETERMINE AND ORDER AS FOLLOWS: I. This Amended and Restated Executive Order incorporates all aspects, restrictions, and requirements of the Moratorium adopted by the Board , as ratified and amended on March 31, 2020, April 14, 2020, May 12, 2020 , June 23, 2020, and July 21, 2020. II. The Moratorium Period is extended until September 30, 2020, unless further extended or repealed by the Board. The Board will reevaluate the need for further extensions every thirty (30) days. III. A temporary moratorium on evictions for non-payment of rent by residential or commercial tenants, or space rent by mobilehome owners, impacted by the COVID-19 crisis is imposed as follows: a. Commencing March 4, 2020 through September 30, 2020, unless further extended or repealed by the Board, no residential or commercial property owner or mobilehome park owner (individually as "Landlord" and collectively as "Landlords") shall evict a residential or commercial tenant or mobilehome space renter (individually as "Tenant" and collectively as "Tenants") in the unincorporated County, and all incorporated cities within the County, for: (1) nonpayment of rent, late charges, interest, or any other fees accrued if the Tenant demonstrates an inability to pay rent and/or such related charges due to financial impacts related to COVID-19, the state of emergency regarding COVID-19, or following government-recommended COVID-19 precautions, and the Tenant has provided notice to the Landlord within seven (7) days after the date that rent and/or such related charges were due, unless extenuating circumstances exist, that the Tenant is unable to pay; or (2) reasons amounting to a no-fault eviction under the County Code, unless necessary for health and safety reasons. Cities that have local eviction moratoria in place are exempt from this Moratorium, except that this Moratorium shall apply to residential tenants, mobilehome space renters, and commercial tenants, respectively, in incorporated cities within the County whose local eviction moratoria does not address residential tenants, mobilehome space renters, or commercial evictions, and effective July 21, 2020, does not include the same or greater tenant protections as the provisions of this Moratorium. HOA 102929855_4 5 1. "Financial impacts" means substantial loss of household income or loss of revenue or business for Tenants due to business closure, increased costs, reduced revenues, or other similar reasons impacting a business's ability to pay rent due, loss of compensable hours of work or wages, layoffs, or extraordinary out-of-pocket medical expenses. 2. A financial impact is "related to COVID-19" if it was a result of any of the following: (a) a suspected or confirmed case of COVID-19, or caring for a household or family member who has a suspected or confirmed case of COVID-19; (b) lay-off, loss of compensable work hours, or other reduction or loss of income or revenue resulting from business closure or other economic or employer impacts of COVID-19; (c) compliance with a recommendation from the County's Health Officer to stay at home, self-quarantine, or avoid congregating with others during the state of emergency; (d) extraordinary out-of-pocket medical expenses related to diagnosis and testing for and/or treatment of COVID-19; or (e) child care needs arising from school closures related to COVID-19. b. No Landlord shall initiate an eviction proceeding during the Moratorium Period for nuisance or for unauthorized occupants or pets whose presence is necessitated by or related to the COVID-19 emergency. A commercial tenant includes, but is not limited to, a Tenant using a property as a storage facility for commercial purposes. c. “No-fault eviction” refers to any eviction for which the grounds for terminating tenancy is not based on any alleged fault by the Tenant, including, but not limited to, those stated in Code of Civil Procedure section 1161 et seq., and Chapters 8.52 and 8.57 of the County Code. d. Consistent with the provisions of this Paragraph III, this Moratorium applies to nonpayment eviction notices, no-fault eviction notices, rent increase notices, and unlawful detainer actions, served and/or filed, on or after March 4, 2020. e. Commercial tenants with nine (9) employees or fewer, residential tenants, and mobilehome space renters shall have twelve (12) months to repay their Landlords for any amounts due and owing. Commercial tenants with ten (10) or more, but fewer than 100, employees shall have six (6) months to repay their Landlords for any amounts due and owing, in equal installments, unless the commercial tenant and Landlord agree to an alternate payment arrangement. This repayment shall begin at the conclusion of the Moratorium Period, as it may be further extended or repealed by the Board. Tenants and Landlords are encouraged to agree on a payment plan during this Moratorium Period, and nothing herein shall be construed to prevent a HOA 102929855_4 6 Landlord from requesting and accepting partial rent payments, or a Tenant from making such payments, if the Tenant is financially able to do so. f. Commercial tenants with nine (9) employees or fewer, residential tenants, and mobilehome space renters may provide, and Landlords must accept, a self-certification of inability to pay rent, and are required to provide notice to the Landlord to this effect within the time-frame specified in this Paragraph III. g. Landlords, and those acting on their behalf, are prohibited from harassing or intimidating Tenants for acts or omissions by Tenants permitted under this Moratorium. h. This Moratorium addresses the County's public policy and intent to close certain businesses to protect public health, safety and welfare, and the County recognizes that the interruption of any business will cause loss of , and damage to, the business. Therefore, the County finds and declares that the closure of these businesses is mandated for the public health, safety and welfare, the physical loss of, and damage to, businesses is resulting from the shutdown, and these businesses have lost the use of their property and are not functioning as intended. i. Commencing June 1, 2020, commercial tenants that are multi-national, publicly-traded, or have more than 100 employees, are excluded from the protections of this Moratorium. j. The Director of the Department of Consumer and Business Affairs ("DCBA"), or his designee, shall issue guidelines to aid in the implementation of the Moratorium, including but not limited to guidance regarding the ways in which Tenants can certify they are entitled to protection under the Moratorium, appropriate supporting documentation for Tenants not entitled to self-certify under the Moratorium, notice requirements, and procedures for utilizing dispute resolution services offered by DCBA, among other clarifications. IV. Landlords shall not increase rents for residential units and mobilehome spaces in the unincorporated County during the Moratorium Period, to the extent otherwise permitted under State law and consistent with Chapters 8.52 and 8.57 of the County Code. V. Landlords shall not impose any new pass-throughs otherwise permitted under Chapters 8.52 and 8.57 of the County Code, or charge interest or late fees on unpaid rent or other amounts otherwise owed, during the Moratorium Period. Landlords are prohibited from retroactively imposing or collecting any such amounts following the termination of the Moratorium. HOA 102929855_4 7 VI. The Los Angeles County Development Authority ("LACDA"), acting in its capacity as a local housing authority for the County, shall extend deadlines for housing assistance recipients and applicants to deliver records or documents related to their eligibility for programs, to the extent those deadlines are within the discretion of the LACDA. VII. The Director of DCBA, in collaboration with the Chief Executive Office ("CEO"), shall offer assistance to the State Department of Bu siness Oversight to engage financial institutions to identify tools to be used to afford County residents relief from the threat of residential foreclosure and displacement, and to promote housing security and stability during this state of emergency. VIII. Grocery stores, gas stations, pharmacies and other retailers are requested to institute measures to prevent panic buying and hoarding essential goods, including, but not limited to, placing limits on the number of essential items a person can buy at one time, controlling entry to stores, and ensuring those at heightened risk of serious complications from COVID-19 are able to purchase necessities. IX. The Director of DCBA, in collaboration with the CEO and the Acting Director of Workforce Development, Aging, and Community Services ("WDACS"), shall convene representatives of utility and other service providers to seek a commitment from the providers to waive any late fees and forgo service disconnections for Tenants and small businesses who are suffering economic loss and hardship as a result of the COVID-19 pandemic. X. The Director of DCBA, the Acting Director of WDACS, and the Acting Executive Director of LACDA shall jointly establish an emergency office dedicated to assisting businesses and employees facing economic instability as a result of the COVID-19 pandemic. The joint emergency office shall be provided all of the necessary resources by DCBA and WDACS, and should include opening a dedicated hotline to assist businesses and employees, web -based and text-based consultations, and multilingual services. The County shall provide technical assistance to businesses and employees seeking to access available programs and insurance, and shall work directly with representatives from the State and federal governments to expedite, to the extent possible, applications and claims filed by County residents. XI. The Director of DCBA and the Acting Executive Director of LACDA shall assist small businesses in the unincorporated areas in applying for U.S. Small Business Administration ("SBA") loans that the President announced on March 12, 2020. SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance for a small business. These SBA loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. HOA 102929855_4 8 XII. The Acting Executive Director of LACDA, or his designee, are hereby delegated authority to amend existing guidelines for any of its existing federal, State or County funded small business loan programs, including the Community Development Block Grant ("CDBG") matching funds, and to execute all related documents to best meet the needs of small businesses being impacted by COVID - 19, consistent with guidance provided by the U.S. Economic Development Administration in a memo dated March 16, 2020 to Revolving Loan Fund ("RLF") Grantees for the purpose of COVID-19 and temporary deviations to RLF Administrative Plans, following approvals as to form by County Counsel. XIII. The Acting Director of WDACS shall work with the State of California, Employment Development Department, to identify additional funding and technical assistance for dislocated workers and at-risk businesses suffering economic hardship as a result of the COVID-19 pandemic. Technical assistance shall include, but not necessarily be limited to: assistance for affected workers in applying for unemployment insurance, disability insurance and paid family leave; additional business assistance for lay-off aversion and rapid response; and additional assistance to mitigate worker hardship as a result of reduced work hours or job loss due to the COVID-19 pandemic. XIV. The Director of DCBA and the Acting Director of WDACS, in collaboration with the CEO and the Acting Executive Director of LACDA, shall create a digital toolkit for small businesses and employees to assist them in accessing available resources, including, but not limited to, disaster loans, unemployment insurance, paid family leave, disability insurance, and layoff aversion programs. XV. The CEO’s Center for Strategic Partnerships, in collaboration with the DCBA and its Office of Immigrant Affairs, and the Acting Director of WDACS, shall convene philanthropic partners to identify opportunities to enhance resources available to all small business owners and employees who may be unable or fearful to access federal and State disaster resources, including immigrants. XVI. The Executive Director of the Office of Immigrant Affairs, the CEO’s Women + Girls Initiative, and the Department of Public Health’s Center for Health Equity shall consult on the above directives to provide an immigration, gender, and health equity lens to inform the delivery of services and outreach. XVII. The Director of DCBA, the Acting Director of WDACS, and the Acting Executive Director of LACDA, or their respective designees, shall have the authority to hire and execute contracts for consultants, contractors, and other services, as needed, to provide consumer protection and support small businesses during the stated emergency to accomplish the above directives. XVIII. Violation of Paragraphs III, IV, or V of this Amended and Restated Executive Order shall be punishable as set forth in Chapter 2.68 of the County Code. In addition, this Amended and Restated Executive Order grants an affirmative defense in the HOA 102929855_4 9 event that an unlawful detainer action is commenced in violation of said Paragraphs. XIX. That this Resolution shall take effect immediately upon its passage. Except as otherwise indicated, all provisions stated herein shall apply commencing March 4, 2020, and shall remain in effect until September 30, 2020, unless extended or repealed by the Board of Supervisors, or its designee. HOA 102929855_4 10 XX. This Resolution Further Amending and Restating the Executive Order supersedes all previously issued resolutions and executive orders concerning an eviction moratorium or rent freeze within the County. It shall be superseded only by a duly enacted ordinance or resolution of the Board or a further executive order issued pursuant to Section 2.68.150 of the County Code. The foregoing Resolution Further Amending and Restating the Executive Order for an Eviction Moratorium was adopted on the ____ day of ___________ 2020, by the Board of Supervisors of the County of Los Angeles. Board of Supervisors of the County of Los Angeles By______________________________ Chair APPROVED AS TO FORM: MARY C. WICKHAM County Counsel By: ______________________ Deputy