CA - Governor’s Executive Order to Protect Renters and Homeowners During COVID-19 (03/16/20)
On March 16th, 2020, Governor Newsom issued Executive Order N-28-20 that authorizes local governments to halt evictions for renters and homeowners, slows foreclosures, and protects against utility shutoffs for Californians affected by COVID-19. The order does not relieve a tenant from the obligation to pay rent, or restrict the landlord’s ability to recover rent that is due.
The protections are in effect through May 31, 2020, unless extended.
The full Executive Order can be found here.
MAIN POINTS
There shall be no state law that restricts a local government from limiting unlawful detainer actions when the action is based on:
nonpayment of rent, or a foreclosure, arising out of a:
substantial decrease in household or business income or
substantial out-of-pocket medical expenses; AND
The decrease income or out-of-pocket medical expenses was caused by the COVID-19 pandemic, government response to COVID-19, AND
is documented.
Tenants are still obligated to pay rent (eventually).
Effective 03/16/2020, Order to Protect Renters and Homeowners During COVID-19
The Order Provides, in part:
1) Any provision of state law that would preempt or otherwise restrict a local government's exercise of its police power to impose substantive limitations on residential or commercial evictions as described in subparagraphs (i) and (ii) below-including, but not limited to, any such provision of Civil Code sections 1940 et seq. or 1954.25 et seq.-is hereby suspended to the extent that it would preempt or otherwise restrict such exercise.
This paragraph 2 shall only apply to the imposition of limitations on evictions when:
(i) The basis for the eviction is nonpayment of rent, or a foreclosure, 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; AND
(ii) The decrease in household or business income or the out-of-pocket medical expenses described in subparagraph (i) was caused by the COVID-19 pandemic, or by any local, state, or federal government response to COVID-19, and is documented.
The statutory cause of action for judicial foreclosure, Code of Civil Procedure section 725a et seq.; the statutory cause of action for unlawful detainer, Code of Civil Procedure section 1161 et seq., and any other statutory cause of action that could be used to evict or otherwise eject a residential or commercial tenant or occupant of residential real property after foreclosure is suspended only as applied to any tenancy, or residential real property and any occupation thereof, to which a local government has imposed a limitation on eviction pursuant to this paragraph 2, and only to the extent of the limitation imposed by the local government.
Nothing in this Order shall relieve a tenant of the obligation to pay rent, nor restrict a landlord's ability to recover rent due.
The protections in this paragraph 2 shall be in effect through May 31, 2020, unless extended.