HomeMy WebLinkAboutItem 11c.1 - Adopting Los Angeles County Evicion Moratorium Policy
DATE: May 5, 2020
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director
SUBJECT: PROCLAMATION OF THE CITY MANAGER/EMERGENCY SERVICES
DIRECTOR ADOPTING THE LOS ANGELES COUNTY EVICTION
MORATORIUM POLICY
Recommendation: Approve
SUMMARY
On March 17, 2020, the City Council adopted Resolution No. 7300, declaring a local
emergency in reaction to the COVID-19 pandemic. The emergency declaration included
a provision placing a temporary moratorium on evictions in the City for a 60-day period.
Since that time, the County of Los Angeles has adopted an eviction moratorium that
applies to all unincorporated areas throughout the County, as well as jurisdictions that
currently do not have their own moratoriums. In an effort to establish consistency and
clarity with the countywide moratorium, it is recommended that the City Council provide
direction on whether to adopt the countywide moratorium, which extends through May
31, 2020.
BACKGROUND
In reaction to the public health threats posed by COVID-19, the State of California and
Los Angeles County declared a State of Emergency on March 4, 2020. Subsequently,
Governor Newsom issued Executive Order N-28-20, which suspended provisions of
State law in order to enable counties and cities to adopt moratoria on evictions in their
respective jurisdictions. These orders are viewed as critical in ensuring safe and stable
living conditions in residential situations, and to maintain continuity in commercial
situations, to the extent it is possible during the pandemic. Arcadia was one of 127 cities
and counties in California that adopted such a moratorium, doing so as part of the local
declaration of emergency on March 17, 2020.
Additionally, on April 6, the Judicial Council of California issued emergency rules that
prohibit courts from issuing a summons for unlawful detainer actions (i.e. allowing
commencement of eviction lawsuits) unless the court finds that there is a health and
safety necessity for the eviction. The emergency rule also suspends judicial
County Eviction Moratorium
May 5, 2020
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foreclosures. This remains effective until 90 days after the Governor lifts the state of
emergency. These rules would take precedence over any local moratorium because it
procedurally puts nearly all evictions on hold until well beyond the current moratorium
time limits. Nevertheless, the Judicial Council rules do not prevent evictions; eviction
notices could still be issued. It would prevent the ability to go to court to remove tenants
however.
DISCUSSION
The eviction moratorium adopted by the City applies to both residential and business
tenants impacted by the COVID-19 crisis, and extends for a period of 60 days (until May
16, 2020). During the period of local emergency, no landlord shall endeavor to evict a
tenant for either 1) the nonpayment of rent if the tenant demonstrates that the tenant is
unable to pay rent due to financial impacts related to COVID-19 or, 2) for a no-fault
eviction unless necessary for the health and safety of the tenants, neighbors, or
landlord. Tenants were directed to provide documentation supporting their claim of
inability to pay the rent within 30 days of the due date of the rent and the declaration
also provided categories for the definition of “financial impacts” related to COVID-19.
Nothing in the declaration relieves the tenant of paying the rent. The full text of the
City’s emergency declaration, which includes the eviction moratorium language, can be
found as Attachment No. 1.
The City’s Order mirrored similar eviction moratoriums adopted by other cities as well as
the Order adopted by Los Angeles County. The County’s Order (originally adopted on
March 19) includes similar language to the City’s declaration. However, on April 14th,
2020, the County Board of Supervisors expanded the temporary moratorium to include
all unincorporated portions of the County and all jurisdictions countywide unless they
have already adopted their own moratoria. The expansion also included mobile home
parks who rent space to mobile home owners. The April 14 Order differs from the City
Order in that tenants must notify their landlord within 7 days after their rent is due,
unless extenuating circumstances exist, that they are unable to pay due to a loss of
income related to COVID-19 (the City declaration says 30 days). Additionally, the
payback period is longer in the County Order; tenants will have twelve (12) months
following the end of the moratorium period to pay back any amount due (it is six (6)
months in the City Order).
The orders to date have been focused primarily on protection of tenants. The City has
explored whether there are measures that can be taken to protect landlords from
foreclosures in the event that tenants do not pay. This is a challenging situation. Based
on a review from Best Best and Krieger, it is not apparent that any cities have taken
actions to prevent foreclosures. Most foreclosures are non-judicial foreclosures – the
bank appoints a trustee. Upon default, the trustee can sell the property at auction. This
is typically done by contract, without the need for court proceedings. This makes it more
difficult for the City because the foreclosure is accomplished through private contract.
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May 5, 2020
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There isn’t a good mechanism for us to prohibit it without affecting private contractual
rights. However, there are some actions that have been taken at the state level,
including the March 25 action from the Governor to agree with major lenders on a 90-
day grace period on foreclosures, as well as proposed legislation which, in part, would
suspend non-judicial foreclosures (AB 828). The City and Best Best and Krieger will
continue to track these efforts and provide information to Arcadia landlords as it
becomes available.
The County Order extends through May 31. In order to provide some clarity and
consistency in the way this issue is applied and enforced, it is recommended that the
City Council adopt the County’s policy and timeline. It is unclear if the County’s policy
would automatically govern if the City’s policy is allowed to sunset. The County’s policy
extends until the end of the month of May, which may avoid some confusion as to a
mid-month ending date. While the City’s moratorium could be extended past the
County’s date, this is not recommended at this time. If the Council wishes to adopt the
County’s policy, this action can be completed by Proclamation by the City
Manager/Emergency Services Director. A sample draft of this Proclamation is included
as Attachment No. 2. If this recommendation is adopted, the City’s policy will mirror the
County’s policy whether or not it is extended or if it sunsets.
It should be noted that there is some risk that a landlord or landlord group could sue the
City if the moratorium is not allowed to sunset. While Arcadia has not received any
letters or comments to this effect to date, other cities have received such letters
threatening litigation. Given the fact that the Judicial Council Order is in place, evictions
cannot be effectuated so the level of risk is deemed to be low. It would likely follow that
risk would be minimized if the City were to adopt the County Order, which applies to
much of the region.
FISCAL IMPACT
There will be no direct fiscal impact incurred by the City as a result of this action.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”) per Section 15061(b)(3) of the CEQA Guidelines as it can be seen
with certainty that it will have no impact on the environment. Thus, this matter is exempt
under CEQA.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a
project and is therefore exempt under the California Environmental Quality Act
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May 5, 2020
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(“CEQA”); and approve a proclamation of the City Manager / Emergency Services
Director adopting the Los Angeles County eviction moratorium policy.
Attachment No. 1: Resolution No. 7300
Attachment No. 2: Draft Proclamation of City Manager on Eviction Moratorium
ADOPTEDAttachment No. 1
/s/ April A. Verlato
/s/ Gene Glasco
10
/s/ Gene Glasco
11
PROCLAMATION
OF THE CITY MANAGER OF THE CITY OF ARCADIA
IN HIS CAPACITY AS EMERGENCY SERVICES DIRECTOR
ADOPTING COUNTY-WIDE EVICTION MORATORIUM
Effective May 6, 2020
WHEREAS, On March 4, 2020, the Health Officer of Los Angeles County determined that
there is an imminent and proximate threat to the public health from the introduction of COVID-19
in Los Angeles County and declared a Local Health Emergency and the Los Angeles County
Board of Supervisors concurrently proclaimed the existence of a local emergency for the County
of Los Angeles; and
WHEREAS, on March 4, 2020, California Governor Gavin Newsom declared a State of
Emergency due to the spread and effects of COVID-19; and
WHEREAS, on March 16, 2020, Governor Newsom issued Executive Order N-28-20,
which suspended provisions of state law in order to enable counties and cities to adopt moratoria
on evictions in their respective jurisdictions; and
WHEREAS, On March 17, 2020, the City Council of the City of Arcadia (“City Council”)
adopted Resolution 7300, ratifying the City Manager’s proclamation of a local emergency and
declaring a local emergency; and
WHEREAS, Resolution 7300 orders a moratorium on the eviction of tenants during the
local emergency for non-payment of rent if the tenant is unable to pay rent due to the financial
impacts of the COVID-19 crisis and enables repayment within six months of the end of the local
emergency; and
WHEREAS, Resolution 7300 by its express terms “shall be superseded by a further order
of the Director of Emergency Services adopted during the local emergency that expressly
supersedes” the orders contained in Resolution 7300; and
WHEREAS, on March 19, 2020, the Chair of the Los Angeles County Board of Supervisors
issued an Executive Order placing a moratorium on evictions in unincorporated areas of Los
Angeles County until May 31, 2020; and
WHEREAS, on March 27, Governor Newsom issued Executive Order N-37-20 imposing
a statewide moratorium on evictions, which does not restrict counties and cities from ordering
more stringent tenant protections; and
WHEREAS, on April 14, 2020, the Board of Supervisors of the County of Los Angeles
adopted a motion extending the County’s eviction moratorium to incorporated cities within the
County and increasing tenant protections, which exempts incorporated cities such as the City of
Arcadia who already have eviction moratoria in place; and
WHEREAS, Resolution 7300’s orders related to a moratorium on evictions shall be
superseded by this Proclamation in order to establish consistency and clarity with the countywide
moratorium.
Attachment No. 2
NOW, THEREFORE, IT IS HEREBY PROCLAIMED THAT:
1. The Executive Order of the Chair of the Board of Supervisors, as adopted on March
19, 2020, ratified on March 31, 2020, and as amended by motion and resolution of the
Board of Supervisors on April 14, 2020 (the “County Order”), shall apply within the
incorporated City of Arcadia to the extent that it is applicable to incorporated cities in
the County of Los Angeles.
2. The County Order is incorporated by reference as if fully set forth herein. Any changes
to the County Order, including but not limited to any extension of the time period during
which it is applicable, shall likewise apply within the City of Arcadia without further
action or order of the City of Arcadia.
3. Pursuant to the authority delegated to the Director of Emergency Services to issue
orders superseding Resolution 7300, this Proclamation shall supersede and withdraw
all portions of Resolution 7300 that relate to a moratorium on evictions, except as set
forth in paragraph 4 below.
4. Resolution 7300 provides that tenants shall notify their landlords of inability to pay rent
in writing within 30 days of the date that rent was due. This 30-day notice period shall
remain in effect for any rent that was due on or prior to the date of this Proclamation,
even if the notice of inability to pay has not yet been given. The County Order requires
such notice within seven (7) days of when rent was due, which shall apply to any rent
that becomes due after the date of this Proclamation.
5. The County Order’s prohibitions on rent increases, which are specific to rent-controlled
properties in unincorporated areas of Los Angeles County, are not applicable in the
City of Arcadia and are not adopted as part of this Proclamation.
6. This Proclamation shall terminate upon termination of the County Order unless the
Emergency Services Director or the City Council terminates or modifies this
Proclamation at an earlier time.
7. This Proclamation is enforceable pursuant to Arcadia Municipal Code section 2215 et
seq. To the extent any part of this Proclamation is deemed unenforceable or invalid,
then such part shall be severed and the remainder shall remain in full force and effect.
If this Proclamation is unenforceable or invalid, then the City of Arcadia shall be
deemed to not have a local eviction moratorium and the County Order shall
nonetheless apply as it applies in other incorporated cities without a local eviction
moratorium.
8. The City Clerk shall maintain copies of the various documents constituting the County
Order, which shall be made available to the public on request and posted on the City’s
website.
9. Additional information about the County Order is available on the Los Angeles County
Department of Consumer and Business Affairs website at
https://dcba.lacounty.gov/noevictions/.
Dated: May 6, 2020 By:______________________________
Dominic Lazzaretto
Director of Emergency Services/
City Manager
City of Arcadia, California