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ORDINANCE OF THE CITY OF STOCKTON AMENDING A TEMPORARY MORATORIUM ON RESIDENTIAL TENANT EVICTIONS
recommended action
RECOMMENDATION
It is recommended that the City Council amend Ordinance 2020-03-17-0302-02 to:
(a) Adopt the California Judicial Council emergency order barring residential tenant evictions, except for reasons of health and safety, until 90 days after the Governor lifts the state of emergency regarding COVID-19 or until amended or repealed by the Judicial Council, and
(b) Allow tenants up to 6 months for full past due rent repayment and 90 days for half repayment after the state of emergency is lifted, while prohibiting late fees, interest, and penalties accrued during the emergency.
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Summary
As of June 2, 2020, San Joaquin County Public Health reported 982 cases of persons testing positive for the novel coronavirus COVID-19.
The public health emergency and the resulting economic fallout surrounding COVID-19 requires that Stockton continue to protect its tenants from further hardship by formulating equitable tenant-landlord policy. Closures and reduced economic activity will affect the ability of all our residents to pay for many expenditures, including rent. This is especially pronounced in Stockton, where residential tenants constitute 52% of our residents, and 49.1% of them are rent-burdened.
Extending and amending the temporary moratorium on residential tenant evictions brings the City’s moratorium in line with Emergency Rules adopted by the California Judicial Council on April 6, 2020, extends best practices adopted by other communities throughout California, and provides more protection and clarity for Stockton residents and landlords.
DISCUSSION
Background
On March 17, 2020, as a response to the COVID-19 outbreak and its economic impact on the local economy and residents, the City Council approved Urgency Ordinance 2020-03-17-0302-01 and Ordinance 2020-03-17-0302-02 to establish a moratorium on residential tenant evictions.
On April 6, 2020, the California Judicial Council approved 11 temporary emergency rules, including a stay on eviction and foreclosure proceedings to protect Californians from losing their homes during the COVID-19 pandemic. These rules remain in effect until 90 days after the Governor lifts the state of emergency regarding the COVID-19 pandemic and direct courts not to issue any summons unless it is necessary to protect public health and safety. This ordinance would incorporate these measures.
This ordinance also adopts best practices from cities like Fresno that also have severely rent- burdened populations have prohibited accrual of penalties or late fees and provided an extended period of time for repayment, but none of which exempt the tenant from payment. These additions directly support the fact that recovery for those most impacted by this health and economic crisis will be gradual, and if these protections are not in place, severely stunted for both landlords and tenants.
This council has made addressing homelessness a top priority. With record unemployment of about 20% in the county, and nearly 25% of people nationally responding to a Census Bureau survey that they have little to no confidence they can pay their next rent due, these are conditions that are likely to lead to mass evictions. Already, in Virginia, only 10% of courts have been opened in the past weeks and have already heard 800 eviction cases, signifying that there is a backlog waiting to explode once the California Judicial Council opens courts back up. This has been corroborated by local organizations, claiming there are many 3 day notices sitting in queue in the county.
However, local organizations and the city have been cooperating to help landlords receive payments and keep people housed. After all, landlords and owners are not in the business of evicting people, but rather, housing them. The city and local organizations have understood this and have set up supports like the Stockton Strong Fund that provide landlord relief through organizations like the Central Valley Low-Income Housing Corporation. In addition, this moratorium on evictions only applies during the term of this ordinance and does not relinquish the responsibility of paying rent and sets up a road-map of repayment (half by 90 days after emergency order is lifted, in full by 6 months).
Nationally, the $600 federal supplement to unemployment benefits, some of which is only being received now by people who filed, is set to expire in August. While 90% of renters were able to fully or partially pay last month, down only 2% from May 2019, the temporary supports set to run out and still- increasing joblessness will make this percentage drop further. However, the state is currently working towards passing more funding for rental assistance to landlords with SB 1410, and the city is continuing to work with landlords and tenants alike, as well as organizations like San Joaquin Fair Housing, to ensure that the small percentage of tenants not able to pay and landlords not able to receive rent are able to work out a financial solution. This ordinance will further protect residents and allow for more time to landlords and tenants to find solutions to this imminent housing crisis.
Present Situation
The proposed ordinance amendment continues to safeguard the majority of Stockton residents from being displaced and/or from falling into homelessness as a result of the economic impacts of COVID-19. It is in keeping with new California Judicial Council emergency rules as well as other best practices and would better protect Stockton residents from losing their homes. It retains notification and verification language and, as before, does not eliminate any person’s obligation to pay rent.
This measure helps address near-term eviction concerns and complements the City’s support for additional State and Federal aid and legislation, such as California Senate Bill 1410, which would fund rental assistance to and through landlords so as to also prevent further economic harm to property owners.
Councilmembers Sol Jobrack and Christina Fugazi as part of an ad hoc committee contributed feedback and recommendations to this revised amendment.