Seide Client Alert: Protection of Commercial Tenants Extended by Governor Newsom

Client Alert

March 05, 2021

Protection of Commercial Tenants

Extended by Governor Newsom

Governor Newsom signed Executive Order N-02-21 on March 4, 2021. This order extends Executive Order N-28-20 that was signed in March 16, 2020. See links below for full copy of orders.

WHAT DOES THIS MEAN?

The purpose of Executive Order N-28-20 was to give local jurisdictions permission to enact eviction moratoriums. It did NOT mandate any moratorium but gave cities (and counties) the option to put a moratorium in place and extend same if the city (or county) felt it appropriate to do so. The governor’s original order has been extended numerous times. The current order (N-02-21) extends the time within which a local jurisdiction may have a moratorium in effect as to COMMERCIAL PROPERTIES through June 30, 2021.

DOES THIS HAVE IMMEDIATE IMPACT ON CITY ORDINANCES?

The impact of this order will differ depending on how a specific city ordinance is worded. If the city’s ordinance ties the timing of its order to N-28-20, then the extension provided by N-02-21 will go into effect immediately without the city taking any additional action. As an example, the ordinance enacted by the City of Santa Ana on March 3, 2020 specifically says:

“This Order shall become effective immediately and in accordance with the Governor of the State of California’s Executive Order N-28-20, this order shall remain in effect until May 31, 2020, or longer if extended by the Governor.”

Executive Order N-28-20 enacted March 16 2020 by Newsom

Executive Order N-02-21 enacted March 4, 2021 with highlights

Eviction Moratorium - City of Santa Ana with highlights

This means Santa Ana does not need to take any action or pass anything at a council meeting to extend their existing moratorium. Their order is worded in such a way that it is automatically extended each time the governor signs a new order impacting the timing of Executive Order N-28-20.

Other cities have ordinances in effect that are not as concise. In those situations, the cities may or may not choose to extend the timing of their orders.

WILL THIS IMPACT ALL CITES?

No! Again, the governor’s order gives cities permission to extend commercial moratoriums if they feel it necessary or appropriate to do so. Each city will make its own determination. Some cities have nothing in place whatsoever. Other cities have very strict moratoriums in place. There is nothing consistent between cities even within the same county. In addition, in some areas, the “county” has chosen to implement a moratorium and supersede city orders. An example of that is Los Angeles County which now governs many cities with the county.

None of this is good news for commercial landlords.

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Any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek competent counsel for advice on any legal matter.

RICHARD L. SEIDE, APC

901 Dove Street, Suite 120, Newport Beach, CA 92660- 3018

Tele: (949) 474-8000; FAX: (949) 474-8030

www.SeideLaw.com