§ 9-1801.  Moratorium on Restaurant Evictions.
   (1)   Scope. This section shall apply to businesses operating as restaurants that meet all of the following conditions:
      (a)   Licensure as a food establishment under subsection 6-301(4)(a), relating to food establishments with a permanent location where the primary business is the regular and customary preparation and sale of food for consumption on or off the premises, including but not limited to, eating and drinking establishments and caterers.
      (b)   The premises on which the restaurant is operated is occupied pursuant to a commercial lease, without a written lease, or with a lease terminable under State law.
      (c)   There are no more than three total restaurant locations under the same name within the City of Philadelphia.
      (d)   The restaurant owner or operator employs no more than 100 employees at the restaurant location for which the owner or operator is seeking protection under this Section 9-1801.
      (e)   The owner or operator can demonstrate one of the following:
         (.1)   A loss of revenue of 50% or more at the restaurant for any two month period between March 17, 2020, and January 1, 2021, as compared to the period beginning April 1, 2019, and ending May 31, 2019; or
         (.2)   If the restaurant was not in operation for the full period between April 1 and May 31, 2019, a loss of revenue of 50% or more for any two month period between March 17, 2020, and January 1, 2021, as compared to the period beginning January 1, 2020, and ending February 29, 2020, or any portion of such period that the restaurant was in operation.
   (2)   Food Establishment Certificate of Hardship. A certification pursuant to subsection 9-809(1)(a)(.2) (pertaining to commercial tenant certifications of hardship) by business operating as a restaurant that meets the conditions under subsection (1).
   (3)   Temporary Moratorium on Restaurant Evictions. During the 180-day period beginning on the date the ordinance adding this Section takes effect, where the lessee has provided the lessor with a food establishment certificate of hardship, the following shall apply:
      (a)   The only legal basis for eviction shall be to cease or prevent an imminent threat of harm by the lessee, including physical harm or harassment, and it shall be unlawful for a lessor to take any step in furtherance of recovering possession on any other basis.
      (b)   A lessor shall not charge fees, penalties, or other charges to the lessee related to the late payment or nonpayment of rent unless all of the following conditions are met:
         (.1)   The lessor provides the lessee evidence that the lessor has incurred costs or fees as a direct result of the lessee's late payment or nonpayment of rent; and
         (.2)   The lessor's property rental business, including all rentals in Philadelphia, have suffered a loss of revenue that would meet the requirements for lost revenue required of restaurants under subsection 9-1801(1)(e); and
         (.3)   The lessor allows the lessee to repay any past due rent over twelve months.
   (4)   Notice. For one year following the expiration of the moratorium provided for under subsection (3), 1117.1 where the lessee has provided the lessor with a food establishment certification of hardship, the lessor shall not take any steps to evict such unless the lessor provides a notice of intent to evict such lessee not less than 30 days prior to the date the lessor takes any such steps to evict the lessee.
   (5)   Any lessor whose lessee has provided a food establishment certification of hardship under this section shall offer such lessee a repayment agreement for past due rent. The lessor shall at minimum permit the lessee to repay the past due rent within nine (9) months after the last day of the COVID-19 emergency period.

 

Notes

1117.1
   Enrolled bill referenced "subsection (2)"; reference corrected by Code editor.