Rent-Reduction Bill a Vast Abuse of Power

Assembly Bill 828 the “Gut and Re-Write” Former Human Trafficking Bill, Is Bad News

By Steven Greenhut, California Columnist

We’ve all accepted the need for some unusual public-policy measures to deal with coronavirus, but we should always look askance at proposals that are unnecessary, counterproductive and abusive of our rights.  Sadly, some legislators seem to be using the crisis to push the types of far-reaching legislation that could never get approved during normal times.

Assemblyman Phil Ting, D-San Francisco, recently introduced the most striking example of this phenomenon. Assembly Bill 828 purports to protect tenants during an emergency but poses a grave threat to property owners and established contracts – and could obliterate California’s already tight rental market even after the crisis passes.

March 2020

The COVID-19 pandemic and Governor Newsom’s “stay-at-home” order create challenges for businesses and landlords in California. As a result, parties to contracts could seek to delay or terminate their obligations. This article discusses some of the legal concepts with respect to delayed or excused contract performance.

Please note that federal, state, and local regulations, laws, and ordinances may override the common law and contractual principles discussed in the article.

Contract Provisions

Force Majeure

A “force majeure” provision in a contract allows a party certain rights if a given event arises. For example, a contract’s “force majeure” provision might allow a construction company to temporarily stop construction of or repairs to a building in the event of a hurricane, a riot, or governmental mandates in connection with a pandemic that impacts their work.

Generally, for a party to invoke “force majeure”rights under a contract, the contract must:

By Gary Ganchrow

There have been several layers of emergency executive orders and local ordinances affecting property ownership since the COVID-19 pandemic began.  These executive orders and local ordinances have seemingly come out at dizzying speeds but have not necessarily been fully consistent with each other. Some (many) have protected renters, while relatively few others were designed to benefit property owners.  The one constant has been that they are hard to keep track of.

Below I discuss a few of the rights and protections the government has provided, but I start with two disclaimers. First, I provide an overview only, and second, because of the speed at which ne rules are created, some of the dates and laws discussed below may have already changed by the time you read this.

• The CARES Act:  Relief for Property Owners

In response to the Coronavirus (COVID-19) pandemic, cities throughout California are issuing orders and adopting urgency ordinances establishing temporary eviction moratoriums on evictions due to non-payment of rent for renters impacted by COVID-19.  Some cities are also prohibiting “no-fault” evictions except in limited circumstances.  In addition, some cities are also prohibiting Ellis Act evictions.

The number of cities that have instituted temporary eviction moratoriums continues to expand.  The list provided below is a sampling of the cities, with links to their orders and/or ordinances, that have implemented temporary moratoriums and not inclusive of all the cities that may adopt such moratoriums.  The Apartment Association of Greater Los Angeles is committed to providing updated information throughout the pandemic.

Effective April 6, 2020, the California Judicial Council enacted eleven Emergency Rules of the California Rules of Court due to the COVID-19 pandemic. These new Emergency Rules suspend most unlawful detainer (eviction) and foreclosure matters brought before California courts.  The Judicial Council of California is the rule-making arm of the California court system.  Under California’s Constitution and the leadership of the Chief Justice of the Supreme Court of California, the Judicial Council is responsible for “ensuring the consistent, independent, impartial, and accessible administration of justice.”

By Cameron Kiszla | Park Labrea News Beverly Press

Millions of Americans are now out of work because of the coronavirus pandemic, and Ange­lenos are no exception.

The city of Los Angeles, as well as multiple nearby cities, enacted an eviction moratorium and allowed rent deferment for tenants who have been impacted by COVID-19.

But now that April 1 has come and gone, local leaders have more work to do in ensuring compliance with the new laws, finding fixes for problems that emerge as a result of the policies and working on long-term solutions.

Without necessary relief, the industry faces dire economic circumstances that would devastate the stability, availability and affordability of the rental housing supply nationwide.

Washington, D.C. – The National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) appreciate Congress and the Administration’s quick action on the Coronavirus Aid, and Economic Security Act, (CARES Act). While many of its provisions are being implemented and relief is beginning to reach affected communities, it is clear from the huge toll the COVID-19 outbreak has had on our nation, further relief and recovery measures are needed.

The apartment industry continues to face dire economic circumstances that would devastate housing stability and the affordability, availability and quality of the rental housing supply nationwide. Congress must provide additional relief to renters and rental housing operators.

Every landlord has to observe a dedicated, pre-determined set of rights and obligations towards the tenants. It is a misconception that landlords only have obligations to follow because there are numerous rights exercised by landlords that tenants have to be aware about prior to signing the agreement.

When trusting your properties to renters, it is imperative to establish a clear and fair rent collection policy as part of the lease. A good rent collection policy encourages healthy tenant and landlord relationships as expectations are set and questions surrounding the processes are eliminated. There are several important components to a solid rent collection policy. The following questions should be answered:

• When is rent due?
• How will rent be collected?
• When is rent considered late?
• How are rent payments documented?
• What fees are imposed on late payment?
• When will the eviction process start?

By Roderick Wright, Former California State Senator

The COVID19 (Coronavirus) pandemic is clearly a major challenge throughout the World, not just for those of us here in the United States.  Sporting events have been cancelled, and many businesses like restaurants and bars are closed, all to keep people healthy and safe.  However, most of the discussion about business losses also involves alternative sources of funds.  Many restaurants have adopted take-out, and many businesses continue operating remotely by sending workers home.  However, there’s a glaring omission from the discussion of adversely impacted businesses, namely, rental property owners. 

Many local governments in California have adopted eviction moratoriums. They have legitimate concerns about people becoming unhoused as a result of contracting the Coronavirus or resulting financial impacts caused by job loss, reduced work hours or childcare requirements.  Without any consequences for not paying rent, some tenants will simply not pay.  But, when tenants are permitted to defer payment for what might be up to six months, who covers that cost?  Mandating that rental property owners absorb this cost without any public funds should be considered an unconstitutional, illegal taking.  For the height of hypocrisy, these same local governments just signed a letter to Governor Newsom, asking that their April 10^th property tax deadline be maintained for fiscal reasons!