Landlord and Tenant Rights During the Coronavirus (COVID-19) Pandemic

The State of California and Los Angeles have already enacted drastic measures to stem potential evictions in the wake of “stay-at-home” orders

The coronavirus pandemic has disrupted all sectors of the domestic and global economy, as evidenced by the unprecedented increase in unemployment claims. President Donald Trump extended the social distancing guidelines for at least another month, with experts predicting such guidelines will last until June 1 or later. On March 18, 2020, California Governor Gavin Newsom signed a state-wide “stay at home” order, and many cities have followed suit by instituting their own “stay at home” measures. Los Angeles Mayor Eric Garcetti has already stated that the original, one-month Los Angeles stay-at-home order that was set to expire on April 19, will likely be extended until May 19, 2020 at a minimum.

Coronavirus (COVID-19) and Eviction Moratoriums

The long term effects of such drastic actions on the real estate market remain to be seen; but one issue is already at the forefront of many people’s mind: the payment of rent. With the first of the month (April 1) fast approaching – the first time most residential and commercial rents will become due in the “post-coronavirus” – commercial and residential tenants alike are requesting a reprieve from the payment of rent.  The consensus for relief has centered around eviction “moratoriums” for those unable to pay rent due to the coronavirus. In fact, on March 27, 2020, Governor Newsom announced a statewide moratorium on evictions, effective immediately, with the express goal of providing relief to tenants for whom rent is coming due on April 1. The governor’s order comes after many cities in California, such as San Jose, San Francisco, Oakland, Los Angeles, Santa Monica, West Hollywood, Beverly Hills, Culver City, and Inglewood,  have already imposed their own moratoriums on evictions.

What is a Moratorium?

It is important to understand that a moratorium is a temporary pause on the requirements to make payment – not a rent “forgiveness” plan that excuses rental payments missed due to the novel coronavirus. Depending on the applicable ordinance (as further discussed below), an eviction moratorium prevents a landlord from instituting eviction proceedings for a certain period of time (in some cases, as little as 30-days) during and after the coronavirus pandemic; however, in each case, the unpaid rent becomes due at a future date after the pandemic has passed, at which point failure to make payment may be grounds for eviction. Given the current estimates that stay at home orders may be in place for months, and that the economy may be on the precipice of a recession – if not a depression – such temporary relief may not be enough for most tenants. In a state where nearly half of its residents are renters – and where more 1,000,000 people filed for unemployment just last week –  such temporary relief may not be enough, and California could see a spike in evictions over the course of the next year. This could have an enormous effect on California, which was already grappling with affordable housing and rent-control issues.

The California and Greater Los Angeles Area Eviction Moratoriums, explained

State of California

California’s eviction moratorium, Executive Order N-37-20, went into effect on March 27, 2020, and remains in effect until May 31, 2020. It only applies to residential tenants (not commercial tenants). However, to call it a moratorium, as Governor Newsom did in his press release announcing the order, is a bit dubious. Unlike the moratoriums put into place by other cities in the state, the order does not prevent new evictions from being filed during the pandemic. Rather, the order just extends a tenant’s legal window for responding in court to 60 days – instead of 5 days – after a landlord files an eviction. Additionally, such extension is only available to a tenant if it meets the following criteria:

1. The tenant was not in default for rent payments prior to the date of the order
2. The tenant notifies the landlord in writing before the rent is due, or within a reasonable period of time afterwards not to exceed 7 days, that the tenant needs to delay all or some payment of rent because of an inability to pay the full amount due to reasons related to COVID-19, including but not limited to the following:
   1. 1. 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;
      2. 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
      3. The tenant needed to miss work to care for a child whose school was closed in response to COVID-19.
3. 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.

The order does place a moratorium on evictions from occurring during the 2-month period if the conditions above are met; but, tenant’s rights advocates have criticized the law as ineffective because it fails to prevent the filing of the eviction in the first place, and it’s unlikely that any eviction would have been completed during the next two-months regardless of this order, simply due to the nature of processing evictions in California. Some argued further that the conditions in and of themselves place an undue burden on tenants since it would require tenants to defend themselves in court by demonstrating the conditions were met.

Fortunately for tenants, the state’s order sets the “floor” for COVID-19 eviction moratoriums – no city or county law may be less “forgiving” to tenants. However, to the extent a city or county (such as Los Angeles) puts into place a more forgiving law – or prescribes additional requirements on landlords – such provisions shall be in addition to the state’s order.

Los Angeles

Los Angeles’s eviction moratorium, initially ordered on March 15, 2020, and expanded on March 17, 2020, with respect to commercial leases, and March 24, 2020 with respect to residential leases, applies to commercial and residential tenants. Under the order:

1. No landlord shall evict a commercial or residential tenant during the COVID-19 “local emergency period” if the tenant is able to show an inability to pay rent due to circumstances related to the COVID-19 pandemic.
   1. 1. These circumstances include:
         1. 1. loss of business income due to a COVID-19 related workplace closure;
            2. child care expenditures due to school closures;
            3. health care expenses related to being ill with COVID-19 or caring for a member of the tenant’s household who is ill with COVID-19; or
            4. reasonable expenditures that stem from government-ordered emergency measures.
      2. Back-Rent Due Dates:
         1. 1. Commercial tenants have up to three months after the expiration of the local emergency period to repay any back due rent.
            2. Residential tenants have up to six months after the expiration of the local emergency period to repay any back due rent.
2. Additional provisions for residential tenants
   1. 1. Landlords are also prohibited from issuing “no-fault” evictions(such as owner-occupancy) to tenants who are sick, in isolation, or quarantined. No-fault evictions include instances where a landlord might want to tear down the building or take the unit for a family member.
      2. Ellis Act Prohibition: no landlord may remove occupied residential units from the rental market under the Ellis Act until April 19, 2020, and tenancies may not be terminated under the Ellis Act until 60 days after April 19, 2020; provided, however, such dates may be extended by the mayor.

Tenants can assert the moratorium on evictions as an “affirmative defense”. Additionally, the Los Angeles Housing and Community Investment Department (HCIDLA) has proposed implementing an administrative process to investigate claims of unlawful evictions. HCIDLA recommends the following best practices for residential tenants and landlords to comply with the moratorium:

For tenants

• Communicate with your landlord about your inability to pay if your income is affected by the COVID-19 emergency.
• Do not ignore any notices issued by the landlord or property manager.
• If you file a complaint (case) with HCID, be sure to comply with the requirements and documentation requested by HCID. Examples of documentation may include, but are not limited to, a letter from the employer citing COVID-19 as a reason for reduced work hours or termination, employer paycheck stubs, bank statements, or school district notifications.
• All tenants are still responsible for any lawfully charged rents due.

For landlords and property managers

• Work with tenants, during the eviction moratorium period.
• Communicate with the tenant about their ability to pay.

For the most part, most of the cities in Los Angeles county have enacted an order that mirrors the Los Angeles moratorium on residential evictions nearly word-for-word. However, in some instances, cities have provided increased clarity or variation, as set forth below.

Santa Monica

Santa Monica’s eviction moratorium was passed March 14, 2020, and remains in effect until April 30, 2020, unless extended by the city. It applies to residential and commercial tenants.  Under the order:

1. A landlord cannot evict a residential tenant for nonpayment of rent if the tenant is unable to pay rent due to financial impacts related to COVID-19, including:
   1. 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.
2. A landlord cannot evict a commercial tenant for nonpayment of rent if the tenant is unable to pay rent due to financial impacts related to COVID-19, including:
   1. 1. lost business income as a result of the commercial tenant or its employees, being sick with COVID-19, or caring for a household or family member who is sick with COVID-19;
      2. lost business income as a result of reduction in or closure of hours of operation, increase in costs and labor, delays or interruptions or any other economic impacts of COVID-19; or
      3. lost business income due to compliance with a recommendation from a government health authority to stay home, self-quarantine, or avoid congregating with others during the state of emergency.
3. A landlord also cannot pursue a no-fault eviction unless necessary for the health and safety of tenants, neighbors, or the landlord.
4. Notice Requirement
   1. 1. A tenant seeking protection from eviction under the moratorium must notify the landlord, in writing, within 30 days after rent is due, that:
         1. 1. the tenant is unable to pay his or her rent (or part of rent); and
            2. the tenant’s household has suffered a loss in income due to the financial impacts related to COVID-19
      2. Together with the notice, a tenant is required to provide the landlord with documents supporting the tenant’s claim of inability to pay rent, such as:
         1. 1. letter from employer citing COVID-19 as a reason for reduced work hours or termination;
            2. paycheck stubs from before and after the COVID-19 outbreak; or
            3. bank statements showing financial situation before and after the COVID-19 outbreak
            4. Once the tenant gives the landlord “notice”, the landlord may not then serve the tenant with a notice to pay rent or quit, or file an unlawful eviction action against the tenant.
5. The city has provided a standard form of notice for tenant’s use
6. Residential and commercial tenants have up to six months after the expiration of the local emergency period to repay any back due rent.

West Hollywood

West Hollywood’s eviction moratorium was passed March 16, 2020, and remains in effect until April 30, 2020, unless extended by the city. It only applies to residential tenants (not commercial tenants).  Under the order:

1. A landlord cannot evict a residential tenant for nonpayment of rent if the tenant is unable to pay rent due to financial impacts related to COVID-19, including:
   1. 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.
2. Notice Requirement
   1. 1. A tenant seeking protection from eviction under the moratorium must notify the landlord, in writing, within 30 days after rent is due, that the tenant is unable to pay his or her rent (or part of rent), and state the COVID-19 related reason therefore, such as:
         1. 1. Caring for myself 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
      2. Together with the notice, a tenant is required to provide the landlord with documents supporting the tenant’s claim of inability to pay rent, such as:
         1. 1. COVID-19 Positive result documentation;
            2. Letter, email, texts related to lay-off, loss of hours or other income reduction;
            3. Health authority communication about recommendation to stay home, self-quarantine, etc.;
            4. Medical bills; or
            5. Receipts/invoices of child-care costs
      3. Once the tenant gives the landlord “notice”, the landlord may not then serve the tenant with a notice to pay rent or quit, or file an unlawful eviction action against the tenant.
      4. The city has provided a standard form of notice for tenant’s use
3. Residential tenants have up to six months after the expiration of the local emergency period to repay any back due rent.

Culver City

On March 20, 2020, Culver City incorporated Los Angeles’s residential and commercial tenant eviction moratorium by reference, thereby applying the LA provisions to residential and commercial tenants in Culver City.

Beverly Hills

Beverly Hills’s eviction moratorium was passed March 17, 2020, and applies to commercial and residential tenants. Under the order:

1. A landlord cannot evict a residential or commercial tenant for nonpayment of rent if the tenant is unable to pay rent due to financial impacts related to COVID-19, including:
   1. 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.
2. A landlord also cannot pursue a no-fault eviction unless necessary for the health and safety of tenants, neighbors, or the landlord.
3. Notice Requirement
   1. 1. A tenant seeking protection from eviction under the moratorium must notify the landlord, in writing, within 30 days after rent is due, that the tenant is unable to pay his or her rent (or part of rent), and state the COVID-19 related reason therefore
      2. Together with the notice, a tenant is required to provide the landlord with documents supporting the tenant’s claim of inability to pay rent
      3. Once the tenant gives the landlord “notice”, the landlord may not then serve the tenant with a notice to pay rent or quit, or file an unlawful eviction action against the tenant.
4. Residential and commercial tenants have up to six months after the expiration of the local emergency period to repay any back due rent.

Inglewood

Inglewood’s eviction moratorium was passed March 17, 2020, and remains in effect for 45-days, unless extended by the city. It only applies to residential tenants (not commercial tenants). Under the order:

1. A landlord cannot evict a residential or commercial tenant for nonpayment of rent during the 45-day period if the tenant is unable to pay rent due to financial impacts related to COVID-19, including:
   1. 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 that equal or exceed 1/3 of tenant’s rent; or
      5. child care needs arising from school closures related to COVID-19, as established by receipts.
2. A landlord also cannot pursue a no-fault eviction unless necessary for the health and safety of tenants, neighbors, or the landlord.
3. Notice Requirement
   1. 1. A tenant seeking protection from eviction under the moratorium must notify the landlord, in writing that the tenant is unable to pay his or her rent (or part of rent), and state the COVID-19 related reason therefore
      2. Together with the notice, a tenant is required to provide the landlord with documents supporting the tenant’s claim of inability to pay rent

As stated above, Inglewood’s ordinance is shorter on detail than some others in Los Angeles, and does not clearly prescribe a time for payment of back-rent.

Summary Chart

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Additional Resources

The Anti-Eviction Mapping Project has a great interactive map that provides updates and summaries on cities, counties, and states throughout the country that have – or are trying to – pass COVID-19 eviction measures.

More Coverage

We will be following the effects of the coronavirus pandemic on the real estate market, and will post updates on our blog.  Follow us on LinkedIn, Facebook, and Instagram for updates. If you have any questions about how the coronavirus may affect your real estate transactions, please email us at info@monumentllp.com or give us a call at (310) 845-6718.