Temporary Residential Eviction Moratorium & Rent Increase Freeze Have Been Extended to July 31. Commercial Eviction Moratorium Expires.
Glendale, CA – On Tuesday, June 30, 2020, the Glendale City Council extended an existing temporary moratorium on residential evictions and rent increases in response to the COVID-19 health emergency.
The residential eviction moratorium will remain in place until July 31, 2020. The temporary eviction moratorium covers:
- Tenants are still required to pay their rent and will have up to twelve months following the expiration of the moratorium (from July 31) to repay any back due rent.
- Tenants are required to pay at least 25% of back due rent at the end of each three (3) month period of the twelve month repayment period, unless the landlord and tenant agree to different repayment terms.
- The moratorium is valid only for those tenants unable to pay rent for a COVID-19-related reason such as a loss of a job or reduction in work hours associated with COVID-19, increased child care expenses, etc.
The order also extends the temporary rent freeze to July 31, 2020. This means Landlords may not issue new rent increases until the expiration of the emergency order, even if the increase is effective after the expiration of the order.
These actions are retroactive to March 24, 2020.
Commercial Eviction Moratorium:
Affected commercial tenants who accrued unpaid rent during the eviction moratorium must pay back the unpaid rent within six months of the end of the eviction moratorium (commencing July 1, 2020).
The amended moratorium that allows six months to repay back due rent does not apply to any commercial tenant that:
- Had 100 employees or more pre-COVID (prior to March 16, 2020) that work in Glendale's jurisdiction.
- Are publicly traded companies.
- Has eleven or more locations worldwide
If a commercial property was unqualified from the amended order as described above, the company has three months to repay any back due rent starting from the expiration of the Order (June 30, 2020). Ineligible tenants are required to pay at least 1/3 of back due rent at the end of each month of the three-month repayment period, unless the landlord and tenant agree to different repayment terms. At the end of the three-month period, the tenant is required to pay the rest of the back due rent.
Glendale businesses and low-income renter residents facing financial hardship due to COVID-19 may be eligible to apply for new grant programs starting July 1, 2020. The City of Glendale recovery grant programs include:
- Emergency Rental Assistance Program – $572,500 from CDBG-CV. The program will offer up to $1,500 maximum assistance to low-income renter residents of Glendale who have been affected by the COVID-19 pandemic. There will be two rounds of funding that will support in total 380 households.
- Low-Income Small Business Grant Program – $572,500 from CDBG-CV. The program will offer small non-essential businesses and restaurants affected by COVID-19 a $5,000 grant to assist with business expenses. The program will support up to 114 Glendale businesses affected by COVID-19 who employ low-income individuals and have no more than 25 employees (self-employed can count as one employee) working at their establishment. Businesses must be in operation for a minimum of one year as of July 1, 2020, and have a commercial location in Glendale.
- Small Business Recovery Grant – $1,600,000 from City of Glendale Measure S. The program will assist 320 businesses who have 500 or fewer employees with a $5,000 grant. Businesses must be in operation for a minimum of 6 months as of July 1, 2020, and have a commercial location in Glendale. All business types are eligible to apply, excluding loan packagers and businesses affiliated with gambling, among other narrowly defined prohibited businesses. Non-profit organizations are eligible (excluding houses of worship).