Commercial Eviction Moratoriums in California in Response to COVID-19

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Although changing rapidly, most California jurisdictions have begun implementing moratoriums on the eviction of commercial tenants. Protections are generally tied to a tenant’s inability to pay rent as a result of the effects of COVID-19. While these tenant safeguards do not excuse the payment of rent entirely, they instead allow for some period of deferment.

As of March 20, 2020, the following jurisdictions are among those in California that have implemented moratoriums (which may be extended) on the eviction of commercial tenants:

Although most municipalities in Orange County haven’t enacted moratoriums yet, news reports indicate discussions are in process.Sacramento and San Jose are also considering offering protections to commercial tenants after doing so for residential renters.

Other Noteworthy Moratoriums:

  • Federal Government has suspended foreclosures on any mortgages backed by Freddie Mac, Fannie Mae, or the Federal Housing Administration (“FHA”) for 60 days (through at least April).
  • New York has announced a 90-day moratorium (through at least June 20) on evictions for residential and commercial tenants.
  • Various cities across the country have enacted moratoriums on residential and/or commercial evictions. In some cases, courts have halted eviction proceedings (i.e., Massachusetts).

As a general note, local governments have been swift in enacting protections for residential renters, with safeguards for commercial tenants following soon thereafter.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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