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California Eviction Order Update

admin  /   December 4, 2020

The California Eviction Order Has Been Extended Through March 2021

The Coronavirus Aid, Relief, and Economic Security Act (The CARES Act) expired on June 28, 2020 leaving millions of people uncertain of their future and uncertain of what to do next. From business closures to distance learning, the many changes to every-day life have left countless individuals in worrying financial predicaments. Upon the virus’s landfall in the United States in March, this legislative measure was pushed through government branches. Offering a broad umbrella of economic protections and distributions, the bill was meant to keep the economy afloat and bankruptcies at bay.

California Governor Newsom took matters into his own hands and issued an Executive Order N-80-20, extending through March 31, 2021. This executive order allows local governments to impose commercial eviction moratoriums and restrictions for commercial tenants who are unable to pay their rent because of COVID-19. Commercial landlords and tenants should refer to their local government’s eviction protections, though, it is expected that local governments will adopt Coronavirus commercial eviction protections, as permitted by the governor’s executive order.

Who Is Eligible for Protection Under This Executive Order?

Commercial tenants who are eligible for protection are those that operate primarily in California and meet one of the following:

  • Average monthly revenue declined 20% or more compared to the two calendar months before the state or local shelter-in-place order took effect and/or compared to the same calendar months in 2019
  • Because of the state of emergency, was prevented from or delayed opening
  • Due to compliance with COVID-19 order or guidelines had to suffer a decline of 15% or more in capacity

San Francisco Mayor’s Addition to the Commercial Eviction Moratorium

The latest announcement declared by the Mayor of San Francisco extends the existing commercial eviction suspension to November 30, 2020 and prohibits evictions for late rent payments due from March 17, 2020 through November 30, 2020. It also explains that no missed rent is due until the expiration of the commercial eviction moratorium. The moratorium may be extended by the mayor for two months at a time, but not past March 31, 2021.

Tenants with 11 or more retail stores in the world are not eligible for protection under California’s commercial eviction moratorium. Also, landlords that own less than 25,000 square feet of rentable space in a building can seek exemption from the ordinance. This gives such landlords the ability to evict a tenant due to nonpayment of rent. The qualifier here is that the landlord must demonstrate that the inability to evict their tenant would create a significant financial hardship.

How Can Laverty Chacón Help?

Here at Laverty Chacón, we have seen firsthand how the pandemic has upended the real estate industry as we once knew it. However, with a clear legal framework for landlords and tenants in California to refer to, the path toward the future is one we navigate together.

Since 1980, Laverty Chacón has served the communities of Northern California as the commercial real estate property management company. Our team has helped countless individuals and businesses navigate the property market in California with expertise in retail, office, commercial, and industrial properties. If you have any questions about commercial real estate or the extended eviction order in California, call Laverty Chacón today at (916) 722-0333.

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