Blog / Legislation / Update: Eviction Moratorium | Commercial Tenants in California

Update: Eviction Moratorium | Commercial Tenants in California

Governor Newsom recently extended the period of time local jurisdictions can prohibit the eviction of commercial tenants until September 30, 2021. This protection was set to expire on June 30,2021. With the re-opening of the state the extension was unexpected. It is important to note this is not a statewide mandate, instead local jurisdictions (cities and counties) are allowed to extend protection to commercial tenants if they feel it’s appropriate. Cities that did not enact an eviction moratorium or allowed it to expire are unlikely to enact one now or re-extend an ordinance that has already expired. Those cities will likely maintain the “status quo” and you will continue to be able to initiate eviction actions against non-paying commercial tenants.

 

Cities that have a moratorium in place with language that says “the expiration of the moratorium is tied to Governor Newsom’s Executive Order N-28-20 and any amendments or extensions thereof”, then that city’s moratorium will automatically be extended through September 30, 2021. The cities who used this tactic to avoid the necessity of holding special city council meetings. An example of a city whose moratorium includes that language is Santa Ana.

 

Remember, any repayment terms included in an eviction moratorium survive the expiration of the moratorium. If a moratorium expired in a city where you have a non-paying tenant, you will be able to demand payment of full rent and NNN charges starting the month following the expiration of the moratorium. You cannot demand immediate payment of the deferred rent. The tenant will have to repay the deferred rent as dictated by the repayment terms set forth in the moratorium governing that city. The repayment terms vary from three (3) months to twelve (12) months so it is important each city be researched separately. 

 

We want to credit www.SeideLaw.com with this update.