W. HOLLYWOOD - Moratorium on Evictions (04/06/20)

 

The City of West Hollywood passed an urgency Ordinance enacting a temporary moratorium on evictions due to nonpayment of rent by commercial tenants impacted by COVID-19 and amending the residential eviction moratorium.

The City of West Hollywood approved an Urgency Ordinance on April 6th, 2020 that protects renters with a temporary moratorium on evictions for nonpayment of rent during the current state of emergency caused by the COVID-19 pandemic. This Ordinance applies to nonpayment eviction notices served or filed on or after March 16th, 2020 and remains in effect until July 31st, unless extended.

 

The full ordinance can be found here.

The City of W. Hollywood has provided this material to clarify the Ordinance.

 

MAIN POINTS

  1. Affected tenants must notify their landlords in writing within 30 days of the rental due date of inability to pay rent. Notification "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.

  2. Affected tenants must state the ways in which they have been financially impacted, this can include:

    • Caring for myself or family member who is sick with COVID-19

    • Lay-off, loss of hours, or other income reduction resulting from business closure or other economic or employer impacts of COVID-19

    • Compliance with a recommendation from a government health authority to stay home, self- quarantine, or avoid congregating with others during the state of emergency

    • Extraordinary out-of-pocket medical expenses

    • Child care needs arising from school closures related to COVID-19

  3. Affected tenants must provide documentation, which can include:

    • COVID-19 positive test result documentation

    • Letter, email, or texts related to lay-off, loss of hours or other income reduction

    • Health authority communication about recommendation to stay home, self-quarantine, etc.

    • Medical bills

    • Receipts/invoices of child-care costs

  4. Landlords are not allowed to evict a tenant for nonpayment of rent if the tenant demonstrates inability to pay rent due to financial impacts related to COVID-19. A landlord who has been notified of lost income and inability to pay full rent due to financial impacts related to COVID-19 — and has been provided with documentation in writing within 30 days after the date that rent is due seek to evict for nonpayment of rent.

  5. Nothing in this ordinance shall relieve the tenant of liability for the unpaid rent, which the landlord may seek after expiration of the local emergency and the tenant must pay within twelve (12) months of the expiration of the local emergency.

 

Effective April 6th, 2020 - Tenant Protections

SECTION 2. Temporary Moratorium on Evictions for Non-Payment of Rent by

Commercial Tenants Impacted by the COVID-19 Crisis.

A. During the period of local emergency declared in response to COVID-19, no commercial landlord shall endeavor to evict a tenant for nonpayment of rent if

  • the tenant demonstrates that 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

  • 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.

B. A landlord knows of a tenant’s lost income and inability to pay rent within the meaning of this ordinance

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, with appropriate supporting documentation supplied as promptly as feasible and up to 90 days of when the rent became due.

If a tenant suffers only a partial loss of income, the tenant shall pay the pro-rated share of their rent that corresponds to the income they generated during the period of loss.

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 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 Ordinance grants a defense in the event that an unlawful detainer action is commenced in violation of this order.

Violation of this ordinance shall be punishable as set forth in Chapter 2.80 of the West Hollywood Municipal Code.

D. Nothing in this ordinance shall relieve the tenant of liability for the unpaid rent, which the landlord may seek after expiration of the local emergency and the tenant must pay within six months (extend to 12) of the expiration of the local emergency.

A landlord may not charge or collect a late fee or interest for rent that is delayed for the reasons stated in this ordinance; nor may a landlord seek rent that is delayed for the reasons stated in this ordinance through the eviction process during or after the period of local emergency.

A landlord shall not commence an eviction during the six months after the end of the local emergency for non-payment of rent, so long as the tenant pays rent in a timely manner after the period of local emergency and is repaying the past due rent that accrued during the emergency period.

Nonpayment of rent in accordance with the terms of this ordinance shall not be grounds for eviction of a tenant even after expiration of the local emergency.

Landlords are strongly encouraged to offer payment plans to tenants after the period of local emergency, which may go beyond the six-month repayment period upon mutual agreement of the parties.

E. No other legal remedies available to landlord are affected by this ordinance.

F. This Section 2 is retroactive to March 16, 2020, the date that the City of West Hollywood declared a local emergency.


SECTION 3. Section 2 of Ordinance No, 20-1101U is amended in its entirety to read as follows:

A. Notwithstanding anything to the contrary in West Hollywood Municipal Code Title 17, during the period of local emergency declared in response to COVID19, 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, or based on the presence of unauthorized occupants related to COVID-19.

B. A landlord who knows that a tenant cannot pay some or all of the rent temporarily for the reasons set forth above 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 explanation to support the claim.

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 text.

Any medical or financial information provided to the landlord shall be held in confidence, and only used for evaluating the tenant’s claim.

C. For purposes of this ordinance “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.

D. This ordinance applies to nonpayment eviction notices and unlawful detainer actions based on such notices, served or filed on or after the date on which a local emergency was proclaimed.

E. This ordinance 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 2.80 of the West Hollywood Municipal Code.

F. Nothing in this ordinance shall relieve the tenant of liability for the unpaid rent, which the landlord may seek after expiration of the local emergency, and the tenant must repay within twelve months of the expiration of the local emergency.

A landlord may not charge or collect a late fee or interest for rent that is delayed for the reasons stated in this ordinance; nor may a landlord seek rent that is delayed for the reasons stated in this ordinance through the eviction process.

A landlord shall not commence an eviction during the twelve months after the end of the local emergency, so long as the tenant pays rent in a timely manner after the period of local emergency and is repaying the past due rent that accrued during the emergency period.

Nonpayment of rent in accordance with the terms of this ordinance shall not be grounds for eviction of a tenant even after expiration of the local emergency.

To the extent it applies, this ordinance is intended to be more restrictive that Civil Code Section 1946.2 by further limiting the reasons for termination of a residential tenancy during the twelve month repayment period Landlords are strongly encouraged to offer payment plans to tenants after the period of local emergency, which may go beyond the twelve month repayment period upon mutual written agreement of the parties.

Tenants may draw down on a security deposit during the repayment period to pay back rent and such security deposit shall be replenished by the end of the twelvemonth repayment period or longer if mutually agreed upon in writing between the parties.

Filing a three-day notice for evictions that are prohibited through this ordinance during the period of this moratorium and reporting nonpayment of rent that is authorized through this ordinance to a credit agency are deemed tenant harassment under WHMC Title 17. G.

No other legal remedies available to landlord are affected by this ordinance.


SECTION 4. Temporary Moratorium on Rent Increases For Occupied Rental Units Subject to the Rent Stabilization Ordinance.

A. Landlords shall not increase rents on occupied rental units subject to the West Hollywood Rent Stabilization Ordinance (WHMC Title 17) beginning on April 6, 2020 through sixty days after the expiration of the local emergency period. This ordinance suspends any conflicting provision of Title 17 of the West Hollywood Municipal Code. Any landlord seeking an exception to this rule may apply for an individual rent adjustment through the rent adjustment process set forth in WHMC Chapter 17.44 if necessary to provide a just and reasonable return and to maintain net operating income. SECTION 5.

In accordance with the Governor of the State of California’s Executive Order N-28-20, this ordinance shall remain in effect until May 31, 2020.

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 for failure to pay rent by individuals impacted by the COVID-19 crisis.

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