Friday, April 10, 2020

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."


Thursday, April 9, 2020

Judicial Council Issues Emergency Rule to Suspend Evictions and Foreclosures

On Monday, California's Judicial Council, representing the state courts, unanimously voted to suspend evictions and foreclosures in California, other than those necessary to protect public health and safety, until 90 days after the state of emergency related to COVID-19 is lifted.


For more information, click here. For the rules, click here.

Also see: https://newsroom.courts.ca.gov/news/judicial-council-adopts-new-rules-to-lower-jail-population-suspend-evictions-and-foreclosures

Sunday, March 29, 2020

Oakland Joins Other California Cities and Passes Moratorium on Evictions Related to COVID-19

On March 27, 2020, the Oakland City Council passed one of the strongest, if not the strongest, eviction moratoriums in the state. 

A helpful primer has been prepared by the Oakland Tenants Union, and can be found here.

An excerpt of the official "Information Sheet" is detailed below:

"The Ordinance also prohibits evictions based on nonpayment of rent that became due during the Local Emergency when the tenant suffered a substantial reduction of income or substantial increase of expenses due to COVID-19. The moratorium is set to end May 31, 2020, unless City Council extends it.

The Emergency Moratorium on Rent Increases and Evictions only applies to tenancies regulated under the Oakland Just Cause for Eviction Ordinance and the Oakland Rent Adjustment Ordinance.

Commercial tenants with questions about the eviction moratorium should send e-mail to busdev@oaklandca.gov.

This emergency ordinance establishes moratoriums on Most Evictions:

Most evictions are banned during the Local Emergency. 

Evictions where the tenant poses an imminent threat to the health or safety of other occupants and Ellis Act evictions are exceptions. Evictions for nonpayment of rent that became due during the Local Emergency

A property owner cannot evict a tenant for failure to pay rent during the Local Emergency if the rent was unpaid due to a substantial loss of income or an increase in expenses resulting from the coronavirus pandemic. This includes, but is not limited to the following:

● the tenant suffered a loss of employment or a reduction in hours;

● the tenant was unable to work because their children were out of school;

● the tenant was unable to work because they were sick with COVID-19 or caring for a household or family member who was sick with COVID19; or

● the tenant incurred substantial out of pocket medical expenses.

The tenant is still obligated to pay rent owed during the Local Emergency. The emergency moratorium on evictions does not relieve the tenant of liability for unpaid rent.

Residential Late Fees for residential tenancies:
No late fees may be imposed for unpaid rent that became due during the Local Emergency if the rent was late for reasons resulting from the COVID-19 pandemic.

Rent Increase 
The moratorium prohibits rent increases above 3.5% (the Consumer Price Index, or CPI) unless required to provide a fair return. Property owners contemplating a rent increase during the Local Emergency should contact the Rent Program and speak with a housing counselor. 

Good Samaritan Temporary Rent Decrease A property owner and tenant may agree in writing to a temporary rent reduction [or rent waiver] without the owner losing the right to raise the rent back to the rate established before the temporary rent reductions. Owners must still comply with all noticing requirements for rent increases, unless the agreement specifically states when the rent will return to the original rent amount.

Eviction Notice Requirements The emergency ordinance has very specific noticing requirements. For notices required for evictions and rent increases during the moratorium, please see the Ordinance for specific language.

Residential tenants and property owners may contact the Rent Adjustment Program with questions by calling (510) 238-3721 or sending e-mail to RAP@oaklandca.gov."


For more information, the Oakland Rent Adjustment Program provides a summary of the moratorium and an FAQ to help Oakland residential and commercial tenants. Click here.

To review the ordinance, see the right side of this blog and look under COVID-19 Eviction Moratoriums.

Tuesday, March 24, 2020

Oakland's Own Barbara Lee Picks Up the Challenge to Protect Renters U.S. Wide

Breaking news! Representative Barbara Lee and a Chicago area Congressman, Chuy Garcia, introduced a federal bill called the "Take Responsibility for Workers and Family Act" which would include a Renter's Eviction Moratorium. If this bill passes Congress, federal law "trumps" state law (no pun intended) and may afford the best tenant protection. Federal law is the "supreme law" under the U.S. Constitution.

Check back for regular updates. A list of Bay Area cities that have enacted - or about to enact - eviction moratoriums due to COVID-19 are listed to the right of this blog post under COVID-19.

Sunday, March 22, 2020

What to Do If You Can't Pay Your Rent due to COVID-19

NOTE: On April 6, 2020, the Judicial Council in the State of California suspended issuing summons in unlawful detainer proceedings for 90-days AFTER the state of emergency is lifted, suspended the entry of default judgment, and extended the time for trial with certain caveats. Review these new rules carefully to understand the protections that these rules afford. Despite these new rules, be sure to take a proactive approach with your landlord and timely notify your landlord if you are not able to pay the rent.

For details about the new court rules, click here.

****************
Cities with an Eviction Moratorium:

If you are located in a city with an eviction moratorium (see the right side of this blog entitled "COVID-19 Eviction Moratoriums or Tenant Resources), timely notify your landlord or property management company if you are unable to pay the rent. What is "timely" is described in the eviction moratorium published in your city's ordinance. What is timely under Governor Newsom's executive order is before rent is due or within 7-days after rent is due together with documentation substantiating the reason for the rent shortfall.

The City of San Jose published a tenant's form that can be used to notify their landlord about the impact of the COVID-19 crisis on their ability to pay the rent. 

See Landlord Notification form issued in San Jose.

Berkeley also has a new fact sheet on their eviction moratorium and a sample letter.

City of Hayward provides a tenant notification letter on their website.

County of Marin has a letter in English, Spanish, and Vietnamese that is a tenant's notification concerning their inability to pay rent due to COVID-19.

The City of Richmond recently published a letter that tenants can use to notify their landlord about the tenant's inability to pay rent due to the financial impact of COVID-19.

The San Francisco Tenant's Union also provides a sample letter to landlords which can be found here.

The City of San Francisco provides additional guidance here and advises tenants to notify their landlord about each instance in which the tenant is unable to pay rent. Click here for more information.

The City of Oakland does not provide a sample tenant notification letter but one can be modeled from the sample letters from other cities noted here but that quote the Oakland municipal ordinance and the date that it was enacted.

If your city does not have a similar notification form, draft a letter to your landlord notifying them about your inability to pay the rent due to COVID-19 and support it with documentation. Check your cities' eviction moratorium requirements and draft your notice consistent with those requirements.

Back up your written notice with documentation such as:
  • An employer order of mandatory leave with no or reduced pay due to COVID-19;

  • Necessity of staying at home to care for children due to school closure and issuance of city order to close your children's school due to COVID-19;

  • Reduction of work hours due to the coronovirus pandemic such as a letter from your employer;

  • Closure of work location due to local or state-issued shelter-at-home order due to COVID-19;

  • Unemployment related to the coronavirus pandemic.
Be sure to check your city's notification requirements for documentation required.

Send the letter by certified mail or by mail with delivery tracking and, if you are able to, email or FAX the letter, too. (Be sure to check the USPS delivery tracking information and print a copy of the delivery information. You may need to use these documents to support an affirmative defense to an unlawful detainer (e.g. an eviction proceeding in court.)

These moratoriums generally act as a defense to eviction but tenants are "still on the hook" for rent. Try to work out a payment plan agreement with your landlord or property manager so that when the moratorium is lifted, you are able to pay a lower balance due.

My City does Not Have an Eviction Moratorium:

If your City has not enacted an eviction moratorium, draft a letter to mail, email and/or FAX to your landlord and quote the requirements of Governor Newsom's Executive Order N-37-20 and follow the requirements set out in this order:

1) The letter must be sent before rent is due or within 7-days afterwards;

2) The tenant is unable to pay rent due to a financial impact caused by COVID-19;

"'(i) The tenant was unavailable to work because the tenant was sick with a suspected or confirmed case of COVID-19 or caring for a household or family member who was sick with a suspected or confirmed case of COVID-19;

(ii) The tenant experienced a lay-off, loss of hours, or other income reduction resulting from COVID-19, the state of emergency, or related government response; or

(iii) The tenant needed to miss work to care for a child whose school was closed in response to COVID-19.

The tenant retains verifiable documentation, such as termination notices, payroll checks, pay stubs, bank statements, medical bills, or signed letters or statements from an employer or supervisor explaining the tenant’s changed financial circumstances, to support the tenant’s assertion of an inability to pay. This documentation may be provided to the landlord no later than the time upon payment of back-due rent."


Send the letter by certified mail or by mail with delivery tracking and, if you are able to, email or FAX the letter, too. (Be sure to check the USPS delivery tracking information and print a copy of the delivery information. You may need to use these documents to support an affirmative defense to an unlawful detainer (e.g. an eviction proceeding in court.)

These moratoriums generally act as a defense to eviction but tenants are "still on the hook" for rent. Try to work out a payment plan with your landlord or property manager so that when the moratorium is lifted, you are able to pay a lower balance due.

Payment Plan and Payment Plan Agreements:

Certain landlord law firms or trade organizations have prepared payment plan agreements (also known as "rent workouts") for landlords to present to their tenants impacted by COVID-19. Before entering into any payment plan with your landlord, consult an attorney to help ensure that the conditions are "bargained for" exchanges and not a one-sided agreement.

Interestingly, the California Apartment Association, a leading landlord association, states:

"If you own or manage rental housing, please demonstrate patience and compassion when dealing with renters affected by coronavirus." 
Landlords also have to pay a mortgage and are being impacted, too.

The CAA is advocating for a state-wide eviction moratorium with financial assistance being offered to both tenants and landlords so that they can benefit from these protections; tenants can rent without fear of eviction and landlords can own without fear of bank foreclosure.

DISCLAIMER: Since the list of eviction moratoriums does not include all cities, check with your city directly or check the Tenant's Together link listed under the COVID-19 resources on this blog. The laws are changing rapidly to keep pace with the pandemic.