City legislation passes: evictions, business
(March 25) The City of San Diego today enacted an eviction moratorium that provides relief to residential and commercial tenants facing financial hardship related to the COVID-19 pandemic. The City Council also unanimously approved a multimillion-dollar Small Business Relief Fund proposed last week by Mayor Kevin Faulconer.
Mayor Faulconer and City Council President Georgette Gómez will speak about these relief measures at the Mayor’s 4:30 p.m. news conference today.
With the backing of Mayor Faulconer and Council President Gómez, the emergency law temporarily halting evictions in the City of San Diego was passed unanimously and goes into effect immediately. It will last until May 31, 2020. Tenants must demonstrate a substantial decrease in income or medical expenses caused by COVID-19 in order to qualify. It will not relieve a tenant of their requirement to pay rent or restrict a landlord from recovering rent at a future time.
The ordinance is necessary to prevent homelessness, maintain public health, and bring housing and business stability during the COVID-19 pandemic. Last week the State of California authorized local governments to temporarily halt evictions for residential and commercial tenants, but the state action does not provide relief unless cities adopt their own laws as San Diego now has.
The temporary eviction moratorium seeks to strike a balance between the interests of tenants, landlords and lenders. The emergency ordinance protects tenants against evictions if they can document their income has been substantially reduced due to the COVID-19 pandemic, or if they are experiencing medical bills as a result of illness related to the coronavirus. If the tenant does not provide evidence of financial impact related to COVID-19 within a specified timeframe, the landlord may pursue enforcement action in accordance with state and local laws. All owed rent is due upon move-out if a tenant decides to relocate while this emergency ordinance is in effect.
It also directs City staff to develop a strategy to work with banks and lenders to halt mortgage payments or foreclosures for individuals and landlords who have suffered severe loss of wages and income due to the health crisis.
The City Council also voted in support of Mayor Faulconer’s proposal to create a Small Business Relief Fund. The Mayor has grown the fund from approximately $4 million to $6 million since he introduced it last week as part of a broader economic relief package.
The fund was created to help local employers sustain operations, retain employees and address the unforeseen reduction in production and consumer demand. The City will use it to make micro loans available to small businesses impacted by the COVID-19 pandemic. Financial assistance will range from $10,000 to $20,000 and will be allocated to eligible small businesses based on the availability of funds and program guidelines. To be eligible, businesses must meet the following requirements:
- Employ less than 100 Full-Time Equivalent employees
- Have a City of San Diego Business Tax Certificate
- Provide documentation that shows the business has been operational for at least six months
- Provide proof of economic hardship due to COVID-19
- Not have engaged in any illegal activity per local, state or federal regulations