A. Nothing in this Chapter shall relieve an affected tenant of liability for unpaid rent or back rent.
B. A landlord may take such actions as allowed by state and local law to collect any back rent that remains unpaid, except that during the applicable grace period set forth in § 11.34.030C., below, a landlord shall not seek recovery of possession of the commercial property for the nonpayment of back rent from an affected tenant, provided the affected tenant is in compliance with § 11.34.030C. below.
C. In order to qualify for the protections of the Commercial Tenant Eviction Moratorium during the applicable grace period, an affected tenant must have, by July 31, 2022, selected and must be in compliance with the requirements of the applicable grace period set forth in § 11.34.030C.1. through C.3., unless a different agreement for repayment of back rent was reached between a landlord and affected tenant, as set forth in § 11.34.030C.4.
1. Twelve-month grace period: Under this 12-month grace period, the affected tenant must repay back rent in full no later than July 31, 2023.
a. No monthly minimum payments are required, and back rent must be fully paid no later than July 31, 2023.
b. A landlord may have cause to evict an affected tenant based on the unpaid back rent only after July 31, 2023.
c. After July 31, 2023, the landlord may take such actions as allowed by state and local law to seek recovery of possession of the commercial property for nonpayment of back rent still owed.
2. Twenty-four-month graduated repayment plan.
a. Under this 24-month grace period, the affected tenant must repay back rent according to the following 24-month repayment schedule (month 1 commencing August 1, 2022 and month 24 ending July 31, 2024):
(1) Months 1 through 4: 1% of back rent each month.
(2) Months 5 through 6: 2% of back rent each month.
(3) Months 9 through 12: 3% of back rent each month.
(4) Months 13 through 16: 5% of back rent each month.
(5) Months 17 through 20: 6% of back rent each month.
(6) Months 21 through 24: 8% of back rent each month.
b. The following table provides, as an example only, the 24-month repayment schedule in the case of back rent in the amount of $100,000:
24-Month Repayment Plan | ||
Month | Repayment Rate | Amount Due |
1 | 1% | $1,000 |
2 | 1% | $1,000 |
3 | 1% | $1,000 |
4 | 1% | $1,000 |
5 | 2% | $2,000 |
6 | 2% | $2,000 |
7 | 2% | $2,000 |
8 | 2% | $2,000 |
9 | 3% | $3,000 |
10 | 3% | $3,000 |
11 | 3% | $3,000 |
12 | 3% | $3,000 |
13 | 5% | $5,000 |
14 | 5% | $5,000 |
15 | 5% | $5,000 |
16 | 5% | $5,000 |
17 | 6% | $6,000 |
18 | 6% | $6,000 |
19 | 6% | $6,000 |
20 | 6% | $6,000 |
21 | 8% | $8,000 |
22 | 8% | $8,000 |
23 | 8% | $8,000 |
24 | 8% | $8,000 |
Total Paid | $100,000 | |
3. Thirty-month graduated repayment plan.
a. Under this 30-month grace period, the affected tenant must repay back rent according to the following 30-month repayment schedule (month 1 commencing August 1, 2022 and month 30 ending January 31, 2025):
(1) Months 1 through 4: 2% of back rent each month.
(2) Months 5 through 9: 3% of back rent each month.
(3) Months 10 through 16: 4% of back rent each month.
(4) Months 17 through 20: 5% of back rent each month.
(5) Months 21 through 22: 4% of back rent each month.
(6) Months 23 through 27: 3% of back rent each month.
(7) Months 28 through 30: 2% of back rent each month.
b. The following table provides, as an example only, the 30-month repayment schedule in the case of back rent in the amount of $100,000:
30-Month Repayment Plan | ||
Month | Repayment Rate | Amount Due |
1 | 2% | $2,000 |
2 | 2% | $2,000 |
3 | 2% | $2,000 |
4 | 2% | $2,000 |
5 | 3% | $3,000 |
6 | 3% | $3,000 |
7 | 3% | $3,000 |
8 | 3% | $3,000 |
9 | 3% | $3,000 |
10 | 4% | $4,000 |
11 | 4% | $4,000 |
12 | 4% | $4,000 |
13 | 4% | $4,000 |
14 | 4% | $4,000 |
15 | 4% | $4,000 |
16 | 4% | $4,000 |
17 | 5% | $5,000 |
18 | 5% | $5,000 |
19 | 5% | $5,000 |
20 | 5% | $5,000 |
21 | 4% | $4,000 |
22 | 4% | $4,000 |
23 | 3% | $3,000 |
24 | 3% | $3,000 |
25 | 3% | $3,000 |
26 | 3% | $3,000 |
27 | 3% | $3,000 |
28 | 2% | $2,000 |
29 | 2% | $2,000 |
30 | 2% | $2,000 |
Total Paid | $100,000 | |
4. Other written agreement for repayment of back rent: If, no later than July 31, 2022, a landlord and affected tenant mutually agreed, in writing, to an alternative plan for the payment of back rent ("alternate agreement"), the alternate agreement shall supersede the requirements set forth in § 11.34.030C.1. through C.3. above. By mutual agreement of a landlord and affected tenant, the alternate agreement also may waive portions of what an affected tenant owes in back rent, and may grant an affected tenant additional time to pay back rent beyond any grace periods set forth in § 11.34.030C.1. through C.3. above. An affected tenant will qualify for the protections of the Commercial Tenant Eviction Moratorium only as long as the affected tenant adheres to the repayment schedule set forth in the alternate agreement.
5. Written communication: In order for an affected tenant to receive protection from eviction during the applicable grace period, on or before July 31, 2022, an affected tenant must have selected, by written communication to the landlord, one of the grace period options, set forth in § 11.34.030C.1 through C.3, above, or entered into an alternate agreement with landlord.
6. Default to 12-month grace period: If an affected tenant failed to provide written communication to the landlord selecting one of the repayment options set forth in § 11.34.030C.1. through C.3. on or before July 31, 2022, then the affected tenant will automatically be subject to the 12-month grace period repayment provisions set forth in § 11.34.030C.1.
7. Payments due: Payments due under a grace period set forth in § 11.34.030C.2. or C.3. above must be made on or before the 1st of each month the payment is due, unless otherwise mutually agreed in writing.
8. Forfeiture of eviction protections: If at any time during the repayment plans set forth in § 11.34.030C.2. through C.4. above, an affected tenant fails to make a payment timely, then the affected tenant will forfeit any protection from eviction afforded during the applicable grace period.
9. No late fees or interest: no late fees or interest shall be charged to the affected tenant on back rent owed.
D. Without limiting a landlord's rights, as described in § 11.34.020E. or § 11.34.030B. above, an affected tenant will have the applicable grace period set forth in § 11.34.030 to pay all back rent, before being subject to eviction for nonpayment of back rent, provided any payment requirements under the applicable grace period are satisfied.
E. During the applicable grace period, the landlord may collect rent as it accrues for each rental period but may not terminate the tenancy of an affected tenant for nonpayment of back rent, provided any payment requirements under the applicable grace period are satisfied. During the applicable grace period, the landlord may terminate the tenancy of an affected tenant for nonpayment of rent accruing during the applicable grace period.
F. If during the Moratorium Period the landlord exercised a legal right to draw upon the affected tenant's deposit under Cal. Civil Code § 1950.7 for payment of rent, then the affected tenant may elect to have payment of back rent during the applicable grace period allocated to the deposit to restore the amount drawn down by the landlord, in which case such amount shall be credited to the back rent owed.
G. Upon an affected tenant's failure to make payment timely, pursuant to the repayment schedules established in § 11.34.030C.2., C.3. or C.4. above, if applicable, the landlord may take such actions as allowed by state and local law to seek recovery of possession of the commercial property for the nonpayment of back rent.
(Ord. No. 2023-003 § 6)