HomeMy WebLinkAbout2020-03-31 - AGENDA REPORTS - CONSIDERATION OF A URGENCY ORD TEMPORARILY PROHIBI (2)4
Agenda Item:3
CITY OF SANTA CLARITA
AGENDA REPORT
SPECIAL MEETING ITEMS
CITY MANAGER APPROVAL:
DATE: March 31, 2020
CONSIDERATION OF AN URGENCY ORDINANCE OF THE CITY
SUBJECT:
COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA,
TEMPORARILY PROHIBITING EVICTIONS OF RESIDENTIAL
AND COMMERCIAL TENANTS ARISING FROM FINANCIAL
IMPACTS OF THE COVID-19 PANDEMIC
DEPARTMENT: City Manager's Office
PRESENTER: Joseph Montes
RECOMMENDED ACTION
City Council introduce, waive further reading, and adopt an urgency ordinance via a 4/5 vote of
CITY OF SANTA CLARITA, CALIFORNIA, TEMPORARILY PROHIBITING EVICTIONS
OF RESIDENTIAL AND COMMERCIAL TENANTS ARISING FROM FINANCIAL
IMPACTS OF THE COVID-
from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines per
Section 15061 (b)(3), the General Rule that CEQA only applies to projects that may have an
effect on the environment.
BACKGROUND
On March 4, 2020, Governor Gavin Newsom proclaimed a state of emergency within the State
of California (State) due to the threat posed by a novel coronavirus (COVID-19). On March 4,
2020, the Los Angeles County (County) Health Officer issued a Declaration of Local Health
Emergency due to the introduction of COVID-19 cases to Los Angeles County. On March 4,
2020, Los Angeles County Board of Supervisors (Board) concurred and issued a Proclamation
declaring a local emergency within the County of Los Angeles regarding the imminent spread of
COVID-19.
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.
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On March 18, 2020, the U.S. Department of Housing and Urban Development and the Federal
Housing Finance Agency (FHFA) issued a 60-day moratorium on foreclosures and evictions for
all Federal Housing Administration-insured single-family mortgages and properties secured by a
Fannie Mae or Freddie Mac single-family mortgage.
On March 19, 2020, Governor Newsom issued an Executive Order that requires all persons to
remain at home to the extent possible and requires all non-essential businesses to be closed.
Additionally, Supervisor Kathryn Barger, Chair of the Los Angeles County Board of
Supervisors, issued an Executive Order prohibiting residential and commercial evictions in the
unincorporated portions of Los Angeles County under certain circumstances.
On March 21, 2020, the Los Angeles County Department of Public Health issued a clarifying
Safer at Home order, requiring all persons to remain at home to the extent possible, unless
engaged in essential businesses.
On March 23, 2020, FHFA expanded their moratorium on evictions to apply to multi-family
properties secured by a Fannie Mae or Freddie Mac mortgage. Specifically, Fannie Mae and
Freddie Mac will begin offering mortgage forbearance to multi-family property owners on the
condition that they suspend all evictions for renters who are unable to pay their rent because of
COVID-19.
On March 25, 2020, Governor Newsom announced that major financial institutions, including
Wells Fargo, U.S. Bank, Citigroup, JPMorgan Chase, and 200 hundred state-chartered banks and
credit unions have agreed to provide major financial relief to those suffering financially as a
result of the COVID-s proposal, Californians struggling with
the COVID-19 crisis may be eligible for a 90-day grace period for mortgage payments,
protection from any negative credit impacts resulting from relief, moratorium on initiating
foreclosure sales, and relief from mortgage-related late fees.
On March 27, 2020, Governor Newsom issued Executive Order N-37-20, which provides certain
eviction protections to residential tenants. That order does not address commercial tenants, nor
does it provide as much protection for resi
19 Order. The Executive Order does not preclude cities from adopting ordinances with greater
protection for tenants, per Order N-28-20.
Businesses that are temporarily closed by the Safer at Home orders are not generating tax
revenues needed for public services, and evictions and replacement of such tenants will further
delay generation of tax revenues once the Safer at Home orders are lifted. Further, even
businesses that continue in operation as essential b
subject to reductions in income as a result of the Safer at Home orders.
California Government Code section 8630 et seq. authorizes the City of Santa Clarita (City) to
declare a local emergency, which the Santa Clarita City Council did at an emergency meeting on
March 13, 2020. California Government Code sections 8634, 36934, and 36937 authorize the
City Council to take action by ordinance to take effect immediately for the preservation of the
public peace, health, or safety when adopted by a four-fifths (4/5) vote of the City Council.
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As a result of the public health emergency and the precautions recommended by health
authorities, many residential and commercial tenants in the City have experienced, or expect to
experience, sudden and unexpected income loss soon. Further economic impacts are anticipated,
leaving tenants unable to pay rent and vulnerable to eviction.
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, and
prevent housed individuals from falling into homelessness.
If adopted, this moratorium ordinance would prohibit evictions of residential and commercial
tenants due to non-payment of rent during the period of the moratorium ordinance. To mirror the
tive Order on the
subject-through May 31, 2020, unless further extended by the Governor. After that time, a tenant
would have six months to pay the delinquent amount of rent, in addition to any then currently
due rent.
This ordinance would be a measure that tenants could use to defend against an unlawful detainer
action, in defending against applicable evictions. City staff would publicize the ordinance, but
h
Executive Order suspending restriction on local eviction protection legislation, the applicability
of the City's ordinance may be determined by a court.
Environmental Analysis
The action proposed herein is exempt from the California Environmental Quality Act (CEQA),
pursuant to State CEQA Guidelines Section 15061 (b)(3), the "General Rule" provision of
CEQA which applies to projects which may have the potential for causing a significant effect on
the environment. Where it can be seen with certainty that there is no possibility that the activity
in question may have a significant effect on the environment, the activity is not subject to CEQA.
The approval of the proposed provisions of an ordinance to temporarily prohibit evictions will
not have a significant effect on the environment and, hence, is not subject to CEQA.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
The resources required to implement the recommended action are contained within the City of
Santa Clarita's adopted FY 2019-20 budget.
ATTACHMENTS
Ordinance 20-3
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ORDINANCE NO. 20-3
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA, CALIFORINA, TEMPORARILY PROHIBITING EVICTIONS
OF RESIDENTIAL AND COMMERCIAL TENANTS ARISING FROM FINANCIAL
IMPACTS OF THE COVID-19 PANDEMIC
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 a novel coronavirus
("COVID-19") including evidence of physical damage to property; and
WHEREAS, on March 4, 2020, the Los Angeles County Health Officer issued a
Declaration of Local Health Emergency due to the introduction of COVID-19 cases to Los
Angeles County; and
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; and
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; and
WHEREAS, on March 19, 2020, Governor Newsom issued an Executive Order that
requires all persons to remain at home to the extent possible and requires all non-essential
businesses to be closed; and
WHEREAS, on March 19, 2020, Supervisor Kathryn Barger, Chair of the Los Angeles
County Board of Supervisors issued an Executive Order prohibiting residential and commercial
evictions in the unincorporated portions of the County under certain circumstances; and
WHEREAS, on March 21, 2020, the Los Angeles County Department of Public Health
issued a clarifying Safer at Home order, requiring all persons to remain at home to the extent
possible, unless engaged in essential businesses; and
WHEREAS, on March 27, 2020, Governor Newsom issued Executive Order N-37-20,
which created certain protections against evictions for residential tenants, but such Order did not
address commercial tenants, nor did it provide as much protection for residential tenants as the
are greater than those set for i
WHEREAS, businesses that are temporarily closed by the Safer at Home orders are not
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generating tax revenues needed for public services, and evictions and replacement of such
tenants will further delay generation of tax revenues once the Safer at Home orders are lifted.
essential b
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and
WHEREAS, California Government Code section 8630 et seq. authorizes the City to
declare a local emergency, which the City Council did at an emergency meeting on March 13,
2020; and
WHEREAS, California Government Code sections 8634, 36934, and 36937 authorize the
City Council to take action by ordinance to take effect immediately for the preservation of the
public peace, health, or safety when adopted by a four-fifths vote of the City Council; and
WHEREAS, as a result of the public health emergency and the precautions recommended
by health authorities, many residential and commercial tenants in the City have experienced or
expect to experience sudden and unexpected income loss soon; and
WHEREAS, further economic impacts are anticipated, leaving residential and
commercial tenants potentially unable to pay rent and vulnerable to eviction; and
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, and prevent housed individuals from falling into homelessness as well as facilitate
the rapid return to business and generation of tax revenues and provision of retail services to the
Santa Clarita community by commercial tenants.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,
CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. A temporary moratorium on eviction for non-payment of rent by residential
or commercial tenants impacted by the COVID-19 crisis is imposed as set forth herein.
SECTION 2. From March 4, 2020, through this o
herein, in response to COVID-19 no landlord shall endeavor to evict a tenant for nonpayment of
rent if the tenant demonstrates that the tenant is unable to pay rent due to Financial Impacts
related to COVID-19.
SECTION 3. A landlord who knows or is deemed to know that a tenant cannot pay some
or all of the rent temporarily for the reasons set forth above in Section 2 shall not serve a notice
pursuant to CCP 1161(2), file or prosecute an unlawful detainer action based on a 3-day pay or
quit notice, or otherwise seek to evict for nonpayment of rent.
within the meaning of this ordinance if the tenant, within seven (7) days after the date that rent is
due, unless extenuating circumstances exist, notifies the landlord in writing and provides
documentation, to the extent available, that the tenant is unable to pay rent due to Financial
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Impacts related to COVID-19. To facilitate communication between a landlord and tenant and
an exploration of alternatives, the tenant is encouraged to notify the landlord of financial
hardship at the earliest opportunity. For purposes of this os email
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previously corresponded by email or text, as well as traditional written communication. Any
medical or financial information provided to the landlord shall be held in confidence, and only be
SECTION 5. Nothing in this ordinance shall relieve the tenant of liability for the unpaid
ed in default
of rent payment obligations unless the Tenant fails to tender rent payments which were unpaid
due to Financial Impacts related to COVID-19, within 6 months of May 31, 2020, or within 6
months of the date upon which an extension of the moratorium as described in Section 9 of this
ordinance expires, whichever is later. A Landlord shall not impose, charge, or collect a late fee or
equivalent surcharge for any rent payments which were unpaid due to Financial Impacts related
to COVID-19. Tenants and Landlords are encouraged to agree to a payment plan during this six-
month period, but nothing in this ordinance shall be construed to prevent a Tenant from paying a
Landlord any amount due incrementally during this six-month period. Any three-day notices to
pay or quit or No-Fault eviction notices served prior to the effective date of this ordinance, but
not yet expired, are automatically deemed served upon the conclusion of the Moratorium Period.
SECTION 6. For purposes of this opacts related to COVID-
household or business income (including, but not limited to, a substantial decrease in household
income caused by layoffs or a reduction in the number of compensable hours of work, or a
substantial decrease in business income caused by a reduction in opening hours or consumer
demand), or substantial out-of-
a result of caring for minor children affected by school, pre-school and/or childcare closures;
provided that, the Financial Impact was caused by the COVID-19 pandemic, or by any local,
state or federal government response to COVID-19, and is documented.
SECTION 7. This ordinance applies to terminations of tenancies for nonpayment of
rent, including eviction notices, no-fault eviction notices as defined herein, and unlawful detainer
actions based on such notices, served or filed during the effective period of this ordinance. For
purposes of this o-
to terminate tenancy is not based on alleged fault by the tenant.
SECTION 8. In the event of a violation of this ordinance, this ordinance grants a defense
where an unlawful detainer action is commenced in violation of this ordinance. Additionally, an
aggrieved tenant may institute a civil proceeding for injunctive relief, money damages of not less
than three times actual damages, and whatever other relief the court deems appropriate. The
prevailing party shall be entitled to reasonable attorney's fees and costs pursuant to the order of
the court. The remedy available under this section shall be in addition to any other existing
remedies which may be available to the tenant under local, state or federal law.
SECTION 9. The moratorium on evictions as described herein shall be in force and
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effect until May 31, 2020, until and unless superseded by a duly enacted ordinance of the City
Council, or a further order by the Director of Emergency Services, adopted during the local
emergency that expressly supersedes this ordinance. Should the Governor extend Executive
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Order N-28-20, the moratorium will continue automatically beyond May 31, 2020, to the date of
SECTION 10. If any provision of this ordinance is found to be unconstitutional or
otherwise invalid by any court of competent jurisdiction, that invalidity shall not affect the
remaining provisions of this chapter which can be implemented without the invalid provisions,
and to this end, the provisions of this chapter are declared to be severable. The City Council
hereby declares that it would have adopted this ordinance and each provision thereof
irrespective of whether any one or more provisions are found invalid, unconstitutional or
otherwise unenforceable.
SECTION 11. The City Clerk shall certify the adoption of this ordinance and shall
cause this ordinance to be published by title and summary in the manner required by law.
SECTION 12. For the reasons set forth above in the recitals, this ordinance is an
urgency ordinance and shall take effect immediately upon adoption by a 4/5 vote of the City
Council, due to the immediate need to protect the public health, safety and welfare.
st
PASSED, APPROVED, AND ADOPTED this 31 day of March 2020.
______________________________
MAYOR
ATTEST:
CITY CLERK
________________________
DATE
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Urgency Ordinance 20-3 was duly introduced and adopted at the special meeting of
st
the City Council on the 31 day of March 2020, by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
AND I FURTHER CERTIFY that the foregoing is the original of Ordinance No. 20-3
and was published in The Signal newspaper in accordance with State Law (G.C. 40806).
______________________________
CITY CLERK
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