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HomeMy WebLinkAboutOrdinance 1994 (Eviction Moratorium Through September 2021)CLERK’S CERTIFICATE I, LINDSAY LARA, Clerk of the City of San Rafael, and Ex-Officio Clerk of the Council of said City, do hereby certify that the foregoing: ORDINANCE NO. 1994 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL, PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 36937(B), BARRING EVICTIONS IN THE CITY OF SAN RAFAEL THROUGH SEPTEMBER 30, 2021 DUE TO THE PUBLIC HEALTH EMERGENCY ARISING FROM COVID-19 is a true and correct copy of an Ordinance of said City, and was passed and adopted as an Urgency Ordinance at a REGULAR meeting of the City Council of said City, held on the 21st day of June 2021, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: COUNCILMEMBERS: None ABSENT:COUNCILMEMBERS: None WITNESS my hand and the official Seal of the City of San Rafael this 22nd day of June 2021 Lindsay Lara, City Clerk 1-1 ORDINANCE NO. 1994 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL, PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 36937(B), BARRING EVICTIONS IN THE CITY OF SAN RAFAEL THROUGH SEPTEMBER 30, 2021 DUE TO THE PUBLIC HEALTH EMERGENCY ARISING FROM COVID-19 THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: WHEREAS, Government Code Section 36937(b) authorizes the adoption of an urgency ordinance for the immediate preservation of the public peace, health or safety; and WHEREAS, on February 26, 2020, community transmission of a widespread, ongoing global outbreak of respiratory illness known as COVID-19 was confirmed by the Centers for Disease Control and Prevention (CDC) in the Bay Area; and WHEREAS, on March 4, 2020, California Governor Newsom declared a state of emergency in the State of California; and WHEREAS, on March 16, 2020, a Shelter-in-Place Order for all of Marin County was issued by the Marin County Health Officer; and WHEREAS, on March 17, 2020, the City Council ratified and confirmed the Emergency Services Director’s Proclamation of Local Emergency; and WHEREAS, on March 16, 2020, Governor Newsom issued Executive Order N-28-2 authorizing local governments to halt evictions for renters and homeowners, slow foreclosures, and protect against utility shutoff for Californians affected by COVID-19. These protections were extended on August 31, 2020 by California Assembly Bill (AB) 3088, the Tenant, Homeowner, and Small Landlord Relief and Stabilization Act of 2020, and again on January 29, 2021 by California Senate Bill (SB) 91, with an effective date through June 30, 2021; and WHEREAS, SB 91 includes provisions establishing a rental assistance program, and provides parameters for distribution of those funds; and WHEREAS on March 24, 2020, pursuant to the powers established under Government Code sections 8630 and 8634, the Marin County Board of Supervisors adopted Resolution No. 2020- 27 barring evictions in Marin County due to the public health emergency arising from COVID-19 (the “Eviction Ban” Resolution). The Eviction Ban Resolution encompassed properties located within the incorporated and unincorporated areas of the County and thus included properties located within the City of San Rafael; and WHEREAS, on April 28, 2020, the Marin County Board of Supervisors adopted Resolution 2020- 40 amending and updating the Eviction Ban Resolution, including adding in a 90-day repayment provision for renters to repay back rent, and requiring landlords to provide a notice of the Eviction Ban prior to serving a notice of eviction on any tenant. Resolution 2020-40 included properties located within the City of San Rafael. The Eviction Ban was updated and extended on May 26, 2020, June 23, 2020, July 28, 2020, and most recently on January 12, 2021; and 1-2 WHEREAS, both the state’s COVID-19 Tenant, Homeowner, and Small Landlord Relief and Stabilization Act of 2020 and the Marin County Eviction Ban are set to expire on June 30, 2021; and WHEREAS, while SB 91 does protect tenants from eviction that have paid 25% of rental debt accruing between September 1, 2020 and June 30, 2021, SB 91 does not afford any protections to tenants who cannot pay 25 percent of past due rental debt (accrued between the dates of September 1, 2020, and June 30, 2021) by the June 30, 2021. (Code of Civil Procedure section 1179.03(g)(1)(B)). Accordingly, starting on July 1, 2021, tenants who have not been able to pay their landlords, including those tenants who have to date been unable to avail themselves of assistance programs, could be subject to unlawful detainer actions. WHEREAS, without local protection, eviction notices for failure to pay rent are likely to surge as many Marin County residents are unable to earn income due to the pandemic or are forced to pay substantial medical expenses associated with the pandemic; and WHEREAS, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) signed into law on March 27, 2020, appropriated $5 billion in additional Community Development Block Grant (CDBG) Program funding to state and local governments; and WHEREAS, the CARES Act directs the Department of Housing and Urban Development (“HUD”) to administer these funds pursuant to Section 106 of the Housing and Community Development Act of 1974 (42 U.S.C. 5306). This provision calls for HUD to allocate the supplemental funds to CDBG grantees—including eligible local governments, states, and insular areas—proportional to their conventional Fiscal Year 2020 CDBG allocation, as published by HUD in April 2020; and WHEREAS, HUD has provided clear direction that the CARES Act funding be allocated based on public health need, risk of transmission of coronavirus, number of coronavirus cases compared to the national average, and economic and housing market disruptions, and other factors, as determined by the Secretary; and WHEREAS, data on COVID-19 cases, supplied by the County of Marin Health and Human Services (HHS), and data on overcrowding, gathered from the U.S. Census American Community Survey, were utilized to determine the communities with the greatest risk for coronavirus transmission; additionally, data from HUD’s CHAS/Consolidated Plan tool were utilized to determine the percentage of low-income households in each community, in line with the use of HUD dollars to be used for low- income individuals and households who make below 80% of the area median income; and WHEREAS, the above described data resulted in a CARES Act allocation within the County of Marin as follows: • San Rafael: 52.7%, $943,853.84 • Novato: 27.1%, $485,359.37 • County Other: 20.2%, $361,780.79; and 1-3 WHEREAS, in allocating CARES Act funding, the County of Marin relied upon data from the Marin County Health and Human Services regarding COVID-19 positivity rates, and relied upon U.S. Census American Community Survey 2018 5-year estimates regarding rates of overcrowding; and WHEREAS, additional substantial federal and state rental assistance funding is available through September 30, 2021, to help mitigate the impacts on property owners of not evicting tenants while COVID-19 cases continue, and while the financial repercussions of the COVID-19 pandemic are still being felt by renters within the City of San Rafael; and WHEREAS, the County of Marin currently has over twenty-two million dollars available for rental assistance and 1,063 applications from renter households waiting for assistance; and WHEREAS, over 50% of rental assistance requests waiting or in progress are from residents living in San Rafael; and WHEREAS, the County of Marin and City of San Rafael, anticipate that additional requests for rental assistance from individual tenants is expected in the coming months; and WHEREAS, the rental assistance is expected to improve financial stability for residents living in San Rafael, the application process is time consuming, and is expected to last several months thus requiring a need for creation of an eviction moratorium specific to the City of San Rafael; and WHEREAS, implementation of an eviction moratorium in San Rafael, will reduce the likelihood of displacement, debt, and continued increases in COVID-19 positivity rates by limiting the potential for displacement, thereby supporting the long-term recovery of these residents; and WHEREAS, for the reasons set forth herein, there is currently an urgent and imminent threat necessitating the immediate need to bar evictions in San Rafael, but because the rental protections established by the COVID-19 Tenant, Homeowner, and Small Landlord Relief and Stabilization Act of 2020 and by the Marin County Eviction Ban are set to expire in June 30, 2021, the City finds and declares that this Ordinance should become effective on July 1,; and WHEREAS, this Ordinance will lower the risk of displacement of vulnerable populations, which is essential for public health and will help tenants experiencing poverty and high segregation be in good standing after the Ordinance expires; and WHEREAS, so too will this Ordinance help ameliorate the broader public health, safety, and welfare effects of the COVID-19 crisis and its impacts on housing in San Rafael; failure to temporarily bar evictions in certain geographic locations disproportionately impacted by COVID- 19 will worsen the already severe impacts of COVID-19 in these areas; and WHEREAS, this Ordinance is temporary and not a general ordinance in force required to be codified; and WHEREAS, adoption of this Ordinance is consistent with the City's General Plan policies; and 1-4 WHEREAS, pursuant to California Environmental Quality Act (“CEQA”) Guidelines § 15378 and California Public Resources Code § 21065, the Council finds that this ordinance is not a “project” because its adoption is not an activity that has the potential for a direct physical change or reasonably foreseeable indirect physical change in the environment; and that, even if this ordinance qualified as a “project” subject to CEQA, and pursuant to CEQA Guidelines § 15061(b)(3), there is no possibility that this project will have a significant impact on the physical environment; and WHEREAS, for all the foregoing reasons, the City Council finds and declares that adoption of this Ordinance is necessary for the immediate preservation of the public peace, health, safety and welfare and its urgency is hereby declared; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Declaration of Threat to Public Health, Safety, and Welfare Necessitating Urgency Ordinance The City Council of the City of San Rafael hereby finds and declares that there is a current and immediate threat to the public health, safety and welfare and a need for the immediate preservation of the public peace, health, safety and welfare that warrants this urgency ordinance, which finding and declaration is based upon the facts, findings, and declarations stated in the recitals of this Ordinance, and all oral and written testimony presented at the June 21, 2021 San Rafael City Council meeting. SECTION 2. Title This Ordinance shall be known as the “COVID-19 Eviction Moratorium.” SECTION 3. Term This Ordinance shall become effective on July 1, 2021 upon its adoption by at least 4/5 vote of the City Council of the City of San Rafael pursuant to section 36937(b) of the California Government Code and shall remain in effect through September 30, 2021 unless repealed or extended by the City Council. SECTION 4. Definitions i. "COVID-19 Financial Distress" means: Loss of income caused by the COVID-19 pandemic; Increased out-of-pocket expenses directly related to performing essential work during the COVID-19 pandemic; Increased expenses directly related to health impacts of the COVID-19 pandemic; Childcare responsibilities or responsibilities to care for an elderly, disabled, or sick family member directly related to the COVID-19 pandemic that limit a person’s ability to earn income; Increased costs for childcare or attending to an elderly, disabled, or sick family member directly related to the COVID-19 pandemic; Other circumstances related to the COVID-19 pandemic that have reduced a person’s income or increased their expenses. 1-5 ii. "Declaration of COVID-19-related financial distress" means the following written statement: I am currently unable to pay my rent or other financial obligations under the lease in full because of one or more of the following: 1. Loss of income caused by the COVID-19 pandemic. 2. Increased out-of-pocket expenses directly related to performing essential work during the COVID-19 pandemic. 3. Increased expenses directly related to health impacts of the COVID-19 pandemic. 4. Childcare responsibilities or responsibilities to care for an elderly, disabled, or sick family member directly related to the COVID-19 pandemic that limit my ability to earn income. 5. Increased costs for childcare or attending to an elderly, disabled, or sick family member directly related to the COVID-19 pandemic. 6. Other circumstances related to the COVID-19 pandemic that have reduced my income or increased my expenses. Any public assistance, including unemployment insurance, pandemic unemployment assistance, state disability insurance (SDI), or paid family leave, that I have received since the start of the COVI D-19 pandemic does not fully make up for my loss of income and/or increased expenses. I declare that the foregoing statements are true and correct and that this declaration is signed under penalty of perjury under the laws of the State of California: ______________________ Declarant Dated:______________ iii. "Landlord" means any natural person, partnership, corporate or fictitious entity, acting as a lessor or sublessor, whether as a principal or through an agent, who receives or is entitled to receive rent in exchange for the use or occupancy of any residential unit for rent, and includes a predecessor in interest. iv. "Notice demanding payment of rent" means any notice demanding payment of rent or any notice informing a tenant of the termination of their right to occupy the Residential Unit in accordance with applicable California law for nonpayment of rent, including but not limited to a 3- or 30-day notice to pay or quit. v. "Rent" means the consideration, including any funds, labor, bonus, benefit, or gratuity, demanded or received by a landlord for or in connection with the use and occupancy of a residential unit and the housing services provided therewith, or for the assignment of a rental agreement for a residential unit. 1-6 vi. "Residential unit" means a structure or the part of a structure, including, but not limited to, houses, apartments, mobilehomes and recreational vehicles, that is used as a home, residence, or sleeping place by one person who maintains a household or by two or more persons who maintain a common household. vii. "Tenancy" means the occupancy of residential unit(s). viii. "Tenant" means a residential tenant, subtenant, lessee, sublessee, or any other person entitled by written or oral rental agreement, or by sufferance, to use or occupancy of a residential unit. SECTION 5. Geographic Scope This Ordinance applies to all residential units located within the City of San Rafael. SECTION 6. Moratorium on Rental Evictions (1) A temporary moratorium on eviction from residential units for non-payment of rent by tenants impacted by the COVID-19 crisis is imposed as follows: No landlord or owner of residential unit(s) shall endeavor to evict a residential tenant or otherwise require a tenant to vacate if the residential tenant has provided a Declaration of COVID-19-related financial distress to the landlord, owner, or landlord or owner's representative within 15 days after receiving notice demanding payment of rent from landlord, that the residential tenant is unable to pay rent due to COVID-19 financial distress, as further detailed below: a. For Tenants that provide the declaration of financial impact due to COVID-19 provided above, Landlords are prohibited from engaging in any of the following actions for non- payment of rent with respect to a Tenant of a residential unit between July 1, 2021 and September 30, 2021: (1) Serving a notice of termination of tenancy; (2) Filing or serving an unlawful detainer lawsuit, ejectment action, or other action to recover possession of a residential unit; or (3) Evicting a Tenant or requiring a Tenant to vacate a residential unit, including by seeking the entry of an eviction judgment or by causing or permitting a writ of possession to be executed; b. A landlord who has been provided with a Declaration of COVID-19-related financial distress shall not serve a notice pursuant to CCP 1161(2), file, prosecute, or otherwise pursue an unlawful detainer action based on a notice of termination, or otherwise seek to evict for nonpayment of rent. 1-7 c. Actions to recover an unpaid COVID-19 rental debt, as defined in Section 1179.02 of the Code of Civil Procedure, are governed by SB 91, and nothing in this ordinance shall be construed to supersede or conflict with SB 91. d. A landlord may not take any actions to evict or attempt to evict a residential tenant unless the landlord demonstrates that the landlord provided a copy of the following notice in at least 12-point font to tenants when serving tenants with a Notice demanding payment of rent: "NOTICE: THE CITY OF SAN RAFAEL HAS ADOPTED A TEMPORARY MORATORIUM THROUGH SEPTEMBER 30, 2021 ON EVICTIONS FOR RESIDENTIAL TENANTS FOR NONPAYMENT OF RENT DUE TO COVID-19. A COPY OF THE CITY RESOLUTION IS ATTACHED. During this moratorium, which expires on September 30, 2021, if you are unable to pay the amount demanded in this notice, and have decreased income or increased expenses due to COVID-19, your landlord will not be able to evict you for this missed payment if you sign and deliver the declaration form included with your notice to your landlord within 15 days, excluding Saturdays, Sundays, and other judicial holidays, but you will still owe this money to your landlord. If you do not sign and deliver the declaration within this time period, you may lose the eviction protections available to you. You must return this form to be protected. You should keep a copy or picture of the signed form for your records. You will still owe this money to your landlord and can be sued for the money, but you cannot be evicted from your home if you comply with these requirements. You should keep careful track of what you have paid and any amount you still owe to protect your rights and avoid future disputes. Failure to respond to this notice may result in an unlawful detainer action (eviction) being filed against you. UPDATED INFORMATION MAY BE AVAILABLE FROM THE CITY’S COMMUNITY DEVELOPMENT DEPARTMENT BY CONTACTING ALICIA.GIUDICE@CITYOFSANRAFAEL.ORG or (415) 485-3092, OR BY VISITING:WWW.CITYOFSANRAFAEL.ORG/DEPARTMENTS/HOUSING/ e. For purposes of this Ordinance, the declaration required under subsection (a) may be provided in writing, including through paper copy, email, or text communications to a landlord or the landlord's representative with whom the residential tenant has previously corresponded by email or text. f. Landlords of residential unit(s), and those acting on their behalf, are prohibited from harassing or intimidating residential tenants for acts or omissions expressly permitted under this Ordinance. g. Nothing in this Urgency Ordinance shall relieve the tenant of liability for the unpaid rent, nor restrict a landlord’s ability to recover rent due. A tenant shall not be deemed in default of rent payment obligations unless the Tenant fails to tender rent payments which were unpaid due to COVID-19 Financial Distress, within 90 days after the expiration or termination date of this Ordinance. 1-8 h. A landlord may not charge or collect a late fee for rent that is delayed for the reasons stated in this Ordinance. i. Landlords and tenants of residential units are encouraged to agree on a payment plan that would allow landlords to accept partial rent payments during the term of the eviction moratorium if tenants are able to make such payments. j. The Community Development Director, or the Director's designee, is authorized to develop and publish guidelines and forms consistent with this Ordinance, if needed. k. The remedies available under this Ordinance shall be in addition to any existing remedies which may be available to the residential tenant under local, state or federal law. l. The moratorium on evictions enacted by this Ordinance shall become effective on July 1, 2021 and will remain in effect through September 30, 2021, unless repealed or superseded by local action, or state or federal law. m. This Urgency Ordinance applies to terminations of tenancies for nonpayment of rent, including eviction notices, no-fault eviction notices as defined herein, and unlawful detainer actions based on such notices, served or filed during the effective period of this Urgency Ordinance. For purposes of this Urgency Ordinance, “no-fault eviction notices” refer to any eviction for which the notice to terminate tenancy is not based on alleged fault by the tenant. SECTION 7. Affirmative Defense to Eviction, Unlawful Detainer Action; Civil Remedies This Urgency Ordinance grants a defense where an unlawful detainer action is commenced in violation of this Urgency Ordinance. Additionally, an aggrieved tenant may institute a civil proceeding for injunctive relief, money damages of not less than three times actual damages, and whatever other relief the court deems appropriate. The prevailing party shall be entitled to reasonable attorney's fees and costs as determined by the court. The remedy available under this section shall be in addition to any other existing remedies which may be available to the tenant under local, state or federal law. SECTION 8. Severability If any provision of this Ordinance or the application of any such provision to any person or circumstance, shall be held invalid, the remainder of this Ordinance, to the extent it can be given effect, or the application of those provisions to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, and to this end the provisions of this Ordinance are severable. SECTION 9. Effective Date Of Ordinance. This Ordinance is hereby declared to be an urgency measure and shall become effective immediately upon adoption by at least a four-fifths (4/5) vote of the City Council pursuant to Government Code section 36937(b). The City Clerk is directed to publish forthwith a copy of this 1-9 Ordinance, together with the names of those Councilmembers voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California. Kate Colin, Mayor ATTEST: LINDSAY LARA, City Clerk I, LINDSAY LARA, City Clerk of the City of San Rafael, certify that the foregoing Ordinance was passed by the City Council of the City of San Rafael, California, by a vote of at least four-fifths (4/5) of the members thereof, at a regular meeting held on Monday, the 21st day of June 2021, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None LINDSAY LARA, City Clerk