Downey approves moratorium on commercial rent

DOWNEY - Downey City Council has voted to provide some extra breathing room to commercial renters affected by COVID-19, while also setting an expiration date for residential rent flexibility.

In response to concerns over the spread of COVID-19, Council had previously given direction to the City Attorney for an emergency ordinance placing a temporary moratorium on evictions of residential tenants in single family residences and multiple dwelling units back later this month, which was scheduled to be brought back to Council April 14.

That point became mute, however, when State Governor Gavin Newsome issued Order N-37-20 - his own statewide moratorium – just three days after Downey’s council met.

Yet, the governor’s order came without a specific timetable for when renters would be held responsible for their unpaid rent.

At their special meeting last Thursday morning, Council decided to allow renters up to three months after the termination of the local emergency to satisfy any outstanding rent.

The subject of commercial property renters - many of which are facing declines in business and closures due to the coronavirus pandemic – was also left unchecked by Newsome’s order, which Downey’s latest action also addressed.

Commercial renters will have several conditions to meet before falling under the safety net of the new moratorium.

Tenants must notify their landlords in writing that they are unable to pay the rent due to the effects of COVID-19, meaning they have suffered “financial impact” resulting from being ill with COVID-19, income reduction resulting from business closure, curtailment of business operations or other economic or employer impacts of COVID-19, layoff or furlough of employees of the business, compliance with a recommendation from a government health authority to stay home, self-quarantine, or avoid congregating with others during the state of emergency, extraordinary out-of-pocket business or medical expenses, or child care needs arising from school closures related to COVID-19.

Commercial renters are also eligible if the financial impact in relation to the business' compliance with the President of the United States' Declaration of National Emergency, the Governor of the State of California's Declaration of State Emergency, the City of Downey's Proclamation of Local Emergency, and/or compliance with public health orders related to COVID-19 from local, county, state, or federal authorities.

They would also have up to three months after the termination of the local emergency to pay their rent.