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    January 2021

    CDC Moratorium

                On September 4, 2020, the CDC published an order (“CDC Order”) entitled “Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19.” The CDC Order was originally scheduled to expire on December 31, 2020. It was further extended through January 31, 2021. On January 29, 2021, CDC Director Walensky signed an extension of the CDC Order through March 31, 2021.[1]  

    State Moratorium

                On August 31, 2020, the California Legislature passed AB 3088, also known that the COVID-19 Tenant Relief Act of 2020 (the “Act”) in response to the impact of the COVID-19 pandemic on residential tenants and their ability to pay rent.  Under the Act, no tenant could be evicted before February 1, 2021 for non-payment of rent due to a COVID-19 related hardship, if the tenant provided a declaration of hardship, and paid at least 25 percent of rent due and accruing between September 1, 2020 and January 31, 2021.

    On January 29, 2021, California Legislature passed SB 91[2] which, among other things:

    • Extends the State residential eviction moratorium through June 30, 2021;
    • Extends the prohibition on commencing an action in small claims court to recover Covid-19 rental debt to August 1, 2021;
    • Prohibits a landlord from applying a security deposit to satisfy Covid-19 rental debt, unless the tenant agrees in writing;
    • Requires a landlord to provide additional notice on or before February 28, 2021 to tenants who have not paid one or more rental payment as of February 1, 2021;
    • Extends the requirements that a tenant provide a specific (and now revised) declaration of financial distress together with payment of 25% of rent due on or before June 30, 2021;
    • Requires, under certain circumstances, that a plaintiff in an action to recover Covid-19 rental debt provide documentation showing good faith effort to investigate whether governmental rental assistance is available to the tenant, to seek such rental assistance for the tenant, or to cooperate with the tenant’s efforts to obtain rental assistance.

    Los Angeles Count Moratorium

                The Los Angeles County Moratorium on commercial evictions for qualified tenants has been extended through February 28, 2021.[3]

                The three moratoria mentioned herein contain additional restrictions and requirements. You may contact us for additional information or guidance.

     

    [1] https://www.cdc.gov/media/releases/2021/s0129-extending-eviction-moratorium.html

    [2] https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB91

    [3] https://dcba.lacounty.gov/noevictions/

    For more information contact:

    Johanna Monon

    jmonon@gibbsgiden.com

    310-734-3317

    Johanna Monon is an associate at Gibbs Giden. She practices in the area of business and commercial transactions as well as commercial litigation. Ms. Monon also provides general counsel services.

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