Berkeley Rent Board Adopts "Good Samaritan" Regulation Assuring Property Owners No Penalty For Lowering or Forgiving Rent During COVID-19 State of Emergency

Below is an excerpt of an email sent by the Berkeley Rent Stabilization Board on April 4, 2020 relating to a landlord's agreement to temporarily reduce or forgive rent due to COVID-19:

"The Rent Board has received numerous calls from property owners asking if they may temporarily reduce or forgive rent to assist their tenants in coping with the COVID-19 crisis without that act of kindness resulting in a permanent reduction in the amount of rent that can be charged for the unit. In most cases, the property owners have always had this ability, with only newer tenancies being in doubt. On April 4, 2020, the Rent Board adopted an emergency regulation that makes clear that for ALL tenancies that began prior to March 3, 2020, an owner may reduce or forgive rent owed without that generosity changing the rent ceiling for the unit. Please see the announcement below.

FOR TENANCIES THAT BEGAN ON OR BEFORE MARCH 3, 2020: Rent Board emergency Regulation 1017.5 allows a landlord and tenant to agree in writing to a temporary rent reduction throughout the duration of the local State of Emergency for the COVID-19 pandemic without reducing the lawful rent ceiling. Ordinarily, under Rent Board Regulation 1013(A)(2), the lawful rent ceiling must account for discounted or "free" rent during the initial term of the tenancy. Regulation 1017.5 supersedes this existing rule.

The written agreement must include a statement that the reduction is temporary, and is not related to market conditions, habitability, or a reduction in housing services. Written agreements entered into during the local State of Emergency may extend beyond the expiration of the local State of Emergency where the landlord and tenant expressly agree to the duration in writing."