Effective February 1, 2021, the California Legislature and Governor Gavin Newsom approved Senate Bill (“SB”) 91 – Eviction Protection and Relief Act in further response to the ongoing COVID-19 pandemic. In essence, SB 91 extends core tenant protections established by August 2020’s Assembly Bill (“AB”) 3088,[1] but also establishes the State Rental Assistance Program, provides rental assistance for landlords and tenants, and closes existing loopholes in AB 3088.
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Coronavirus
California Housing Legislation Effective in 2021
The California Legislature made modest gains on housing production and stimulus bills in 2020, and there are several notable bills that took effect on January 1, 2021. The new laws tackle COVID-19, project permit streamlining and planning, residential density bonus, and the California Environmental Quality Act (“CEQA”). Below is a summary of these new laws.
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Southern District of New York Upholds New York City Council COVID-19 Tenant Protection Ordinances
On November 25, 2020, Judge Ronnie Abrams of the United States District Court for the Southern District of New York issued a decision in Melendez, et al. v. The City of New York, et al. (No. 20-CV-5301 (RA) upholding amendments to certain New York City Council ordinances prohibiting landlords from harassing residential and commercial tenants impacted by COVID-19 and preventing landlords from enforcing personal guaranties in commercial leases if the tenant’s monetary default was caused by the pandemic.
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Federal Judge Blocks Eviction Moratorium Challenge by Los Angeles Apartment Owners
City of Los Angeles apartment owners recently lost their bid in Federal Court to halt the application of Mayor Eric Garcetti’s eviction moratorium[1] and rent freeze ordinance[2] (the “City Moratorium”). Senior United States District Judge Dean D. Pregerson ruled on November 13, 2020 that the apartment owners had failed to show “irreparable harm” because (a) there was no immediate threat of foreclosure, and (b) the City Moratorium appeared to be “imminently reasonable” in the context of the unprecedented pandemic.[3]
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Regional Stay at Home Order Implemented in California
Late last week, in an effort to control the increase of COVID-19 cases and stabilize the overwhelming hospital systems,[1] California Governor Gavin Newsom announced a new Regional Stay At Home Order (December Order) based on Intensive Care Unit (ICU) bed capacity. Under the December Order, if the available ICU capacity dips below 15% in any of the 5 designated regions, said region will be placed into a stay-at-home order. Such order will go into effect at 11:59 p.m. following the day the region hits the ICU threshold, and will continue until the region’s total available adult ICU bed capacity is greater than or equal to 15% projected over 4 weeks. If the December Order is in effect in a region, it supersedes any conflicting terms in other California Department of Public Health order, directive or guidance. Once the stay-at-home order lifts for any impacted region, the December Order will no longer apply and each county in said region will be assigned to a tier based on the Blueprint for a Safer Economy.
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Los Angeles County Restricts In-Person Dining Due to Surge in COVID-19 Cases
Due to the recent surge in COVID-19 cases, the Los Angeles County Department of Public Health (“L.A. Public Health”) announced that all outdoor and indoor dining at restaurants, breweries and wineries will be restricted, effective November 25, 2020 at 10:00 p.m., while take-out, drive thru, and delivery services may continue (“Order”).
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SB 288: Sustainable Transportation and the “Road to Recovery” for Post-COVID Air Pollution and Unemployment Concerns
At the end of the 2020 legislative session, California Governor Newsom signed Senate Bill 288 (Wiener)[1] (SB 288) into law. SB 288, amends the California Environmental Quality Act (CEQA), streamlining the environmental review process for: (i) specific transportation-related projects, including bus rapid transit projects, light rail service projects, construction or maintenance of charging or refueling stations for zero-emission buses; (ii) projects that improve customer information and wayfinding for transit riders, bicyclists, or pedestrians; (iii) city or county projects designed to minimize parking requirements; and (iv) similar transportation oriented projects. Specifically, SB 288 designates these projects necessary to facilitate development of sustainable transportation alternatives and related infrastructure, encouraging broader use of sustainable transit throughout the state. Due to this designation, SB 288 exempts these projects from CEQA review as categorical exemptions beginning January 1, 2021. SB 288 is slated to sunset on January 1, 2030. In addition, SB 288 extends the existing exemption for bicycle transportation plans (including restriping of streets and highways, bicycle parking and storage, signage, and related improvements to intersection operations) from the existing sunset date[2] to January 1, 2030.
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California Housing Legislation 2020
Governor Gavin Newsom just signed a number of housing bills into law that were passed by the Legislature this session ending on August 31, 2020. Due to the severe scheduling constraints placed on lawmakers by the COVID-19 pandemic among other challenges, the Legislature was only able to pass a small number of bills related to housing and tenant protections, despite beginning the year with over 100 bills under consideration. Most notably, some of the most ambitious pieces of legislation including five of the bills in the State Senate’s Housing Production Package all failed to pass before the midnight deadline on August 31, 2020. We will continue to monitor the Legislature’s efforts to spur additional housing production in California as we head into the Fall recess and the new legislative session starting on December 7, 2020. Below is a summary of the bills signed by the Governor on August 28, 2020. These bills take effect on January 1, 2020, unless otherwise noted.
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Residential Eviction Protections and California Consumer Financial Protections Pass Muster During 2020 Legislative Session
During the eleventh hour of the 2020 legislative session, the California Legislature approved 2 significant bills in response to the COVID-19 pandemic with the potential to have far-reaching ramifications for mortgage servicers.
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COVID-19 Alert: California’s Housing Bills to Boost Production
The California legislature is gearing up to adopt major real estate development incentives intended to boost the economy in the wake of COVID-19. The recent outbreaks and general constraints on travel have compressed the state’s legislative Fall calendar. Thus, leaders from both chambers have directed their members to prioritize policy proposals. Finding ways to increase housing production, especially affordable housing, is emerging as the focus.
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A Streamlined Process: Expedited Temporary Outdoor Dining Permits For NYC Restaurants
On March 22, 2020, Governor Cuomo issued an executive order that closed all non-essential businesses in New York State (the “Order”). In connection with the Order, New York City restaurants were forced to reduce their operations to pick-up and delivery only. On June 8, 2020, New York City entered into Phase I of the New York State reopening plan. It is anticipated that sometime between June 22, 2020 and the beginning of July, 2020, New York City will enter into Phase II. During Phase II, restaurants will not be allowed to serve patrons indoors, but will be permitted to commence service to patrons outdoors. In the past, restaurants have only been allowed to serve patrons outdoors after obtaining a sidewalk café permit pursuant to zoning regulations issued by the New York City Department of Consumer Affairs (“DCA”). The outdoor café permit process is typically expensive, burdensome, time consuming and subject to zoning restrictions and community board approval. However, a bill has been introduced at the New York City Council (the “Bill”) that will allow restaurants to apply for a Temporary Outdoor Space Dining Permit (a “Permit”) to serve patrons outdoors by utilizing sidewalks, pedestrian plazas, streets, parking lots and other public/private owned spaces.
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