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CC - Item 6B - Discussion of Interest in Potential Future Action to Allow the County of Los Angeles' Temporary Prohibition on Evictions of Residential and Commercial Tenants Arising From Financial Impacts of The COVID-19 PandemicROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR ARMENTA AND CITY COUNCIL FROM: RACHEL RICHMAN, CITY ATTORNEY M 0 DATE: APRIL 28, 2020 SUBJECT: DISCUSSION OF INTEREST IN POTENTIAL FUTURE ACTION TO ALLOW THE COUNTY OF LOS ANGELES' TEMPORARY PROHIBITION ON EVICTIONS OF RESIDENTIAL AND COMMERCIAL TENANTS ARISING FROM FINANCIAL IMPACTS OF THE COVID-19 PANDEMIC TO APPLY TO THE CITY DISCUSSION On March 26, 2020, the City Council adopted an urgency ordinance providing certain eviction protections for residential and commercial tenants as a result of financial impacts resulting from the COVID-19 pandemic. The City's ordinance was similar to the County of Los Angeles' order providing protection for tenants in the unincorporated portions of the County. On April 14, 2020, the Los Angeles County Board of Supervisors adopted a revised eviction protection moratorium order, providing additional protections not set forth in the existing County order. Of significance, the new County regulation provides tenants up to 12 months to repay rent not paid during the eviction moratorium period (the prior order and City ordinance provided 6 months). More importantly, the new County order applies in all cities of the County that do not otherwise have their own eviction protection moratorium. The City Attorney is looking for direction as to whether the City Council would like to place an item on an upcoming agenda to repeal the City's ordinance and allow the County's to apply in its place or if the Council wants to continue with its existing ordinance. RECOMMENDATION: The City Council discuss and provide direction on whether it wants to consider at an upcoming meeting having the County's eviction moratorium apply in the City by repealing the City's current eviction moratorium ordinance and provide any other appropriate direction on the topic. AGENDA ITEM 6.11 City Council Meeting April 28, 2020 Page 2 of 2 Submitted by: Rachel Richman City Attorney Attachments A: Initial County Order of March 19, 2020 (see highlighted portions) Attachment B: Updated Order of April 14, 2020 (see highlighted portions) Attachment A Initial County Order of March 19, 2020 (see highlighted portions) EXECUTIVE ORDER OF THE CHAIR OF THE. COUNTY OF LOS ANGELES BOARD OF SUPERVISORS FOLLOWING PROCLAMATION OF EXISTENCE;OF A LOCAL HEALTH EMERGENCY REGARDING NOVEL CORONAVIRUS (COVID-19) WHEREAS, on March 4, 2020, Governor Gavin Newsom proclaimed a state of emergency within the State of California ("State") due to the threat posed by Novel Coronavirus ("COVID-19"); WHEREAS, on March 4, 2020, the Los Angeles County Health Officer issued a Declaration of Local Health Emergency .due to .the introduction of the COVID-19 cases to Los Angeles County; WHEREAS, on March 4, 2020, Los. Angeles County Board of Supervisors ("Board") concurred and issued a Proclamation ("Proclamation") declaring a local emergency within the County of Los Angeles regarding, the imminent spread of COVID- 19; WHEREAS, on March 16, 2020, Governor Newsom issued an Executive Order that authorizes local governments to halt evictions for renters, encourages financial institutions to slow foreclosures, and protects renters and homeowners against utility shutoffs for Californians affected. by COVID.-19; WHEREAS, California Government Code section 8550 et seq. and Los Angeles County Code ("Code") Section 2..68.150 empower the Chair of the Board of the County of Los Angeles ("County") to promulgate orders and regulations for the, protection of life and property where necessary to preserve the public order and safety; WHEREAS, as a result of the public health emergency and the precautions recommended by health authorities, many residential and commercial tenants in the County have experienced or expect to experience sudden and unexpected income loss soon; WHEREAS, further economic impacts are anticipated, leaving tenants unable to pay rent and vulnerableto eviction; WHEREAS, during this local emergency, and in the interest of protecting the public health and preventing transmission of COVID-19, it is essential to avoid unnecessary housing displacement., protect the County's affordable housing stock, and prevent. housed individuals from failing into homelessness; WHEREAS; loss of income as a result of COVID-19 may hinder County residents and businesses from fulfilling their financial obligations, including paying rentand making public utility payments such as water and sewer charges; -1- WHEREAS, ensuring that all people in the County continue to have access to running water during this public health crisis will enable compliance With public health guidelines advising people to regularly wash their hands, maintain access to clean drinking water, help prevent the. spread of COVID-19', and prevent or alleviate illness or death due to the virus; WHEREAS, ensuring that all customers in the County that receive power services from Southern California. Edison and Southern California Gas Company (collectively, "Public Utilities") continue to have access to electricity so they .are able to receive important COVID-19 information, keep critical medical equipment functioning, and utilize power as needed will help to prevent the spread of COVID-19 and prevent or alleviate illness or death due to the virus; WHEREAS., the Public Utilities have announced that they will be suspending service disconnections for nonpayment and waiving late fees, effective immediately; for residential .and business customers impacted by the COVID-19 emergency, and WHEREAS, in the interest of public health and safety, as affected by the emergency caused by the spread of COVID=19, it is necessary to exercise my authority to issue this regulation related to the protection of life and property. NOW, THEREFORE, IT IS HEREBY PROCLAIMED AND ORDERED by the Chair of the Board of Supervisors of the County of Los Angeles, that an emergency continues to exist within the County threatening the lives,, property and welfare of the County and its constituents. IT IS HEREBY ORDERED THAT I.. W temporary moratorium on evictions for non-payment of rent by residential or commercial tenants impacted by the COVID-19 crisis is imposed as follows: a. Commencing March 4, 2020, through May 31, 2020, no residential or commercial property owner (collectively "Landlord") shall evict a residential or commercial tenant (collectively "Tenant") in the unincorporated County for: (1) nonpayment of rent, late charges, or any other fees accrued if the Tenant demonstrates an inability to pay rent and/or related charges due to financial impacts related to COVID-19, the state of emergency regarding COVID-19, or followinggovern me nt-recom mended COVID-19 precautions, and the Tenant has provided notice to the Landlord. within seven (7) days after the date that rent was due, unless extenuating circumstances exist, that the Tenant is unable to pay; or (2) reasons amounting to a no-fault eviction under the County Code, unless necessary for health and safety reasons. b. For purposes of this Executive Order, "financial impacts" means a substantial loss of household income due to business closure, loss of compensab: e� of {wor or wages, ayo s, or extraordinary out -o -^ pocket medical expenses. A financial impact is "related to COVID-19 if it was a result of any of the following: (1) diagnosed with COVID-19, o.r caring ti for a household or family member who is diagnosed 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 the County's Health Officer to stay home, self - quarantine, or avoid congregating with others during the state; of emergency; (4) extraordinary out-of-pocket. medical expenses related to diagnosis and testing for and/or treatment of COVID-19; or (5) child care needs arising from school closures related to COVID-1.9. c. For purposes of this Executive Order, "no-fault eviction' refers to any evictionfor which the notice to terminate tenancy is not based on alleged fault by the Tenant, including but not limited to, eviction notices served; pursuant to Code of Civil Procedure section 1161 et seq. or County Code. d: Consistent with the provisions of this Paragraph I, this Executive Order applies to nonpayment eviction notices, no-fault eviction notices, and; unlawful detainer actions based on such notices, served or filed on or after March 4; 2020. e. Tenants shall have six (6) months following the termination of this Executive Order to pay the Landlord any .amounts due and. owing pursuant to paragraph (1). Tenants and Landlords are encouraged to agree to a payment plan during this six-month period, but nothing in this Executive Order shall be construed to prevent a Tenant from paying a Landlord :any amount due incrementally during this six-month period _,., . _ w yam: , z k A II_ The Los Angeles County Development Authority ("LACDA"), acting m i s capacity as a local housing authority for the County, shall extend deadlines for housing assistance recipients and applicants to deliver records or documents related to their eligibility for programs, to the: extent those deadlines are within the discretion of the LACDA. Ill. The Director of DCBA, in collaboration with the Chief Executive Office, shall offer assistance to the State Department of Business .Oversight to engage financial. institutions to identify tools to be used to afford County residents relief from the threat of residential foreclosure and displacement, and to promote housing security and stability during this state of emergency. IV. Grocery stores, gas stations, pharmacies and other retailers are requested to institute measuresto prevent, panic buying and hoarding essential goods, including but not limited to, placing limits on the number of essential items a person can buy -3- at one time, controlling entry to. stores., and ensuring those at heightened risk of serious complications from COVID-19 are able to purchase necessities.. V. The Director of the Department of Consumer and Business Affairs ("DCBA"), in collaboration with the Chief Executive: Office and the Acting Director of Workforce Development, Aging, and Community Services ("WDACS"), shall convene representatives of utility and service providers to seek a commitment from the providers to waive any late fees and forgo service disconnections for Tenants and small businesses who are. suffering economic loss and hardship as a result .of the COVID-19 pandemic. VI. The Director of DCBA, the Acting Director of WDACS, and the Acting Executive Director of the LACDA shall jointly establish an emergency office dedicated to assisting businesses and employees facing economic instability as a result of the COVID-19 pandemic. The joint emergency office shall be provided all of : the necessary resources: by DCBA and WDACS, and should include opening a dedicated hotline to assist businesses and employees, web -based and text -based consultations, and multilingual services. The County shall provide technical assistance to businesses and employees seeking to access available programs and insurance, and shall. work directly with representatives from the State and Federal government to expedite, to the extent possible, applications and claims filed by County residents. VII The Director of DCBA and the Acting Executive Director of the LACDA shall assist small businesses in the unincorporated areas in applying for U.S. Small Business Administration ("SBA") loans that were announced by the President on March 12, 2020. SBA's Economic. Injury Disaster Loans offer up to $2 million in: assistance for a small business. These SBA loans can provide vital economic support to small businesses,to help overcome the temporary loss of revenue they are experiencing. VIII. Delegate authority to the Acting Executive Director of the LACDA, or his designee, to amend existing guidelines for any of its existing Federal, State or County funded small business loan programs, including the Community Development Block Grant (CDBG) matching funds, and to execute all related documents to best meet: the needs of small businesses being impacted by COVID-19, consistent with guidance provided by the U.S. Economic Development Administration ("EDA") in a memo dated March 16,, 2020 to. Revolving Loan Fund ("RLF") .Grantees for the purpose of COVID-19 and temporary deviations to RLF Administrative Plans, following approvals to form by County Counsel. IX. The Acting Director of WDACS shall work with the State of California, Employment Development Department, to identify additional funding and technical assistance for dislocated workers and at -risk businesses suffering economic hardship as a result of the COVID-19 pandemic. Technical assistance shall include, but not necessarily be limited to: assistance for affected workers in applying for unemploymentinsurance, disability insurance and paid family leave; additional -4- business assistance for lay-off aversion and rapid response; and additional assistance to mitigate worker hardship as a result of reduced work hours or job loss due to the COVID-19 pandemic. X. The Director of DCBA and the Acting Director of WDACS, in collaboration with the Chief Executive Office and the Acting Executive Director of the LACDA, shall create a digital toolkit for small businesses and employees to assist them in accessing available resources, including but not limited to disaster loans, unemployment insurance, paid family leave, disability insurance, and layoff aversion programs. XI. The Chief Executive Office's Center for Strategic Partnerships, in collaboration with the DCBA and its Office of Immigrant Affairs, and the Acting Director of WDACS, shall convene philanthropic partners to identify opportunities to enhance resources available to all small business owners and employees who may be unable or fearful to access federal and State disaster resources, including immigrants. XII. The Executive Director of the Office of Immigrant Affairs, the Chief Executive Office's Women + Girls Initiative, and the Department of Public Health's Center for Health Equity shall consult on the above directives to provide an immigration, gender, and health equity lens to inform the delivery of services and outreach. XIII. The Director of DCBA, the Acting Director of WDACS, and the Acting Executive Director of the LACDA, or their designated designees, shall have the authority to hire and execute contracts for consultants, contractors, and other services, as needed, to provide consumer protection and support small businesses during the stated emergency to accomplish the above directives. XIV. Violation of this Executive Order shall be punishable as set forth in Chapter 2.68 of the County Code. In addition, this Executive Order grants an affirmative defense in the event that an unlawful detainer action is commenced in violation of this Executive Order. XV. This Executive Order shall be superseded by a duly enacted Ordinance or Resolution of the Board or a further Executive Order adopted pursuant to Section 2.68.150 of the County Code that expressly supersedes this Executive Order. Dated: March 19, 2020 athryn Barg r ir, Los Angeles County Board of Supervisors -5- Attachment B Updated Order of April 14, 2020 (see highlighted portions) RESOLUTION OF THE BOARD OF SUPERVISORS AMENDING THE EXECUTIVE ORDER FOR AN EVICTION MORATORIUM DURING THE COVID-19 LOCAL EMERGENCY RATIFIED ON MARCH 31, 2020 WHEREAS, on March 4, 2020, the Chair of the Los Angeles County Board of Supervisors ("Board") proclaimed, pursuant to Chapter 2.68 of the Los Angeles County Code, and the Board ratified that same day, the existence of a local emergency because the County of Los Angeles ("County") is affected by a public calamity due to conditions of disaster or extreme peril to the safety of persons and property arising as a result of the introduction of the novel coronavirus ("COVID-19") in Los Angeles County; WHEREAS, also on March 4, 2020, the County Health Officer determined that there is an imminent and proximate threat to the public health from the introduction of COVID-19 in Los Angeles County, and concurrently declared a Local Health Emergency; WHEREAS, on March 16, 2020, Governor Newsom issued Executive Order N-28- 20 that authorizes local governments to halt evictions for renters, encourages financial institutions to slow foreclosures, and protects renters and homeowners against utility shutoffs for Californians affected by COVID-19; WHEREAS, on March 19, 2020, the Chair of the Board issued an Executive Order ("Executive Order") that imposed a temporary moratorium on evictions for non-payment of rent by residential or commercial tenants impacted by COVID-19 ("Moratorium"), commencing March 4, 2020 through March 31, 2020 ("Moratorium Period"); WHEREAS, on March 21, 2020, due to the continued rapid spread of COVID-19 and the need to protect the community, the County Health Officer issued a revised Safer at Home Order for Control of COVID-19 ("Safer at Home Order") prohibiting all events and gatherings and closing non-essential businesses and areas until April 19, 2020; WHEREAS, on March 27, 2020, Governor Newsom issued Executive Order N-37- 20 extending the period for response by tenants to unlawful detainer actions and prohibiting evictions of tenants who satisfy the requirements of Executive Order N-37-20; WHEREAS, on March 31, 2020, the Board ratified the County's Executive Order and amended the ratified Executive Order to include a ban on rent increases in the unincorporated County to the extent permitted by State law and consistent with Chapter 8.52 of the County Code; WHEREAS, on April body of the California courts, Rules 1 and 2 effectively foreclosures; HOA.102832194.8 6, 2020, the California Judicial Council, the policymaking issued eleven temporary emergency measures, of which provide for a moratorium on all evictions and judicial WHEREAS, COVID-19 is causing and is expected to continue to cause serious financial impacts to Los Angeles County residents and businesses, including the substantial loss of income due to illness, business closures, loss of employment, or reduced hours, impeding their ability to pay rent; WHEREAS, displacing residential and commercial tenants who are unable to pay rent due to such financial impacts will worsen the present crisis by making it difficult for them to comply with the Safer at Home Order, thereby placing tenants and many others at great risk; WHEREAS, while it is the County's public policy and intent to close certain businesses to protect public health, safety and welfare, the County recognizes that the interruption of any business will cause loss of and damage to the business. Therefore, the County finds and declares that the closure of these businesses is mandated for the public health, safety and welfare and that the physical loss of and damage to businesses is resulting from the shutdown and that these businesses have lost the use of their property and are not functioning as intended; WHEREAS because homelessness and instability can exacerbate vulnerability to, and the spread of, COVID-19, the County must take measures to preserve and increase housing security and stability for Los Angeles County residents to protect public health; WHEREAS, a County -wide approach to restricting displacement is necessary to accomplish the public health goals of limiting the spread of the COVID-19 virus as set forth in the Safer at Home Order; WHEREAS, based on the County's authority during a state of emergency pursuant to Government Code section 8630, et seq. and Chapter 2.68 of the County Code, the County may issue orders to all incorporated cities within the County to provide for the protection of life and property, where necessary to preserve the public order and safety; and WHEREAS, due to the continued, rapid spread of COVID-19 and the need to preserve life and property, the County has determined that continued evictions in the County and all of its incorporated cities during this COVID-19 crisis would severely impact the health, safety and welfare of County residents. NOW, THEREFORE, THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES DOES HEREBY PROCLAIM, RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1: The Executive Order is hereby amended to also include a temporary moratorium on eviction for non-payment of space rent on mobilehome owners who rent space in mobilehome parks. This Executive Order is expanded to include all incorporated cities within the County of Los Angeles pursuant to Government Code section 8630, et HOA. 102832194.8 seq. and Chapter 2.68 of the County Code, exempting cities that have local eviction moratoria in place. SECTION 2: The Executive Order has been ratified and amended to prohibit rent increases for residential units and mobilehome owners in the unincorporated County during the Moratorium Period, unless extended, to the extent permitted by State law and consistent with Chapters 8.52 and 8.57 of the County Code. The Executive Order, also prohibits a landlord from imposing any new pass-throughs permitted in Chapters 8.52 and 8.57 of the County Code or charging interest or late fees on unpaid rent during the Moratorium Period, and bars landlords from attempting to collect any interest and late fees incurred during this Moratorium Period following the termination of the Moratorium. SECTION 3: The Executive Order hereby amends Paragraph 1.b to read as follows: "For purposes of this Executive Order, 'financial impacts' means substantial loss of household income or loss of revenue or business for commercial tenants due to business closure, loss of compensable hours of work or wages, layoffs, or extraordinary out-of-pocket medical expenses. A financial impact is "related to COVID-19" if it was a result of any of the following: (1) suspected or confirmed case of COVID-19, or caring for a household or family member who is suspected or confirmed 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 the County's Health Officer to stay home, self -quarantine, or avoid congregating with others during the state of emergency; (4) extraordinary out-of-pocket medical expenses related to diagnosis and testing for and/or treatment of COVID-19; or (5) child care needs arising from school closures related to COVID-19. No landlord shall initiate an eviction proceeding during the Moratorium Period for unauthorized occupants, pets or nuisance as necessitated by or related to the COVID-19 emergency. For purposes of this Executive Order, a commercial tenant includes, but is not limited to, a tenant using a property as a storage facility or for commercial purposes." SECTION 4: The Executive Order hereby amends Paragraph 1.e to read as follows: "Tenants shall have twelve (12) months following the end of the Moratorium Period to pay the Landlord any amounts due and owing pursuant to Paragraph I. Tenants and Landlords are encouraged to agree to a payment plan during this twelve-month period, but nothing in this Executive Order shall be construed to prevent a Landlord from requesting and accepting partial rent payments, or a Tenant from making such payments, during the twelve-month period if the Tenant is financially able to do so. Tenant may provide and Landlord must accept a self -certification of Tenant's inability to pay rent and to provide notice to the Landlord to that effect." SECTION 5: The Executive Order is hereby amended to prohibit landlords, and those acting on their behalf, from harassing or intimidating tenants for acts or omissions by tenant expressly permitted under the Executive Order, as amended, and this Resolution. HOA.102832194.8 SECTION 6: The Executive Order is hereby amended to address the County's public policy and intent to close certain businesses to protect public health, safety and welfare, and the County recognizes that the interruption of any business will cause loss of and damage to the business. Therefore, the County finds and declares that the closure of these businesses is mandated for the public health, safety and welfare and that the physical loss of and damage to businesses is resulting from the shutdown and that these businesses have lost the use of their property and are not functioning as intended. SECTION 7: That this Resolution shall take effect immediately upon its passage and shall remain in effect until May 31, 2020, unless extended or repealed by the Board of Supervisors, or its designee. The foregoing Resolution was adopted on the day of the Board of Supervisors of the County of Los Angeles. Board of Supervisors of the County of Los Angeles M APPROVED AS TO FORM: MARY C. WICKHAM County Counsel 0 Deputy HOA.102832194.8 Chair 2020, by