Title
Adoption of Urgency Uncodified Ordinance Imposing within the City of Alameda a Temporary (60-Day) Moratorium on (A) Evictions from all Residential Rental Units due to the COVID-19 Pandemic and (B) Landlords’ Shutting off Utilities in Rental Units Except for Emergency Situations. (Community Development)
Body
To: Honorable Mayor and Members of the City Council
Executive Summary
The Centers for Disease Control and Prevention, the California Department of Health, and the Alameda County Department of Public Health have all issued recommendations including but not limited to social distancing, staying home if sick, canceling or postponing large group events, working from home, and other precautions to protect public health and prevent transmission of coronavirus (COVID-19). In addition, the President of the United States has declared a national emergency, the Governor of the State of California has declared a State of Emergency for the State and for all the counties in the State, and the City Council of the City of Alameda (City) has declared a local emergency.
As a result of the state of emergency and the government-recommended precautions, many tenants have experienced sudden income loss, and further income impacts are anticipated, leaving tenants vulnerable to eviction. During this state of emergency, and in the interests of protecting the public health and preventing transmission of the coronavirus, it is essential to avoid unnecessary displacement and homelessness. Therefore, staff is recommending that the City Council adopt an urgency ordinance imposing a 60-day moratorium on evictions due to a substantial loss of income resulting from COVID-19 and on non-emergency utility shut-offs by landlords. The moratorium would be achieved by reason of the Ordinance’s providing to a tenant a substantive eviction defense if an eviction proceeding (an unlawful detainer) were filed against the tenant for non-payment of rent and the tenant could demonstrate that the non-payment of rent was due to the tenant’s substantial loss of income due to COVID-19.
BACKGROUND
As a result of the public health emergency related to COVID-19 and the precautions recommended by health authorities, many tenants in Alameda have experienced, or expect soon to experience, sudden and unexpected income loss due to temporarily being unable to report to work due to illness caused by COVID-19 or quarantines related to COVID-19, the closure of schools and daycare and the need to take care of children at home, and/or lay-offs due to business slow-down and closures. Further economic impacts are anticipated, leaving tenants vulnerable to eviction during this local emergency. It is essential to avoid unnecessary housing displacement, to protect the City’s affordable housing stock, and to prevent housed individuals from falling into homelessness. A 60-day moratorium on evictions from residential rental units due to a substantial loss of income due to the COVID-19 pandemic, and a prohibition on landlords shutting off utilities for non-emergency, will protect tenants from losing their housing and protect the public health and prevent transmission of COVID-19.
DISCUSSION
The proposed urgency ordinance would take effect immediately and would apply to all eviction proceedings, such as notices to quit or pay rent or unlawful detainer actions served on or after March 1, 2020. By providing a substantive eviction defense to a tenant, the ordinance would place a 60 day moratorium on eviction actions instituted for non-payment of rent where a tenant can demonstrate that the tenant has suffered a substantial loss of income (defined as a reduction of 20% or more of monthly gross pay) due to the COVID-19 pandemic. Impacts on loss of income include:
• the need to remain off work due to COVID-19 symptoms
• the need to self-quarantine because of exposure to COVID-19
• a reduction in the number of work hours
• job loss due to closure of the business that employed the tenant
• the need to care for a child(ren) whose school is closed
The ordinance will also preclude landlords from shutting off utilities except in the event of an emergency such as an urgent repair.
The urgency ordinance, if adopted, will act as a deterrent to most landlords initiating eviction proceedings if a tenant can show that the non-payment of rent was due the tenant’s loss of income arising out of the consequences of COVID. If a landlord nevertheless filed eviction proceedings in court, the ordinance could be used as an affirmative defense in a court proceeding regarding an unlawful detainer. Centro Legal de la Raza, with whom the City contracts to provide free legal services for low-income tenants, will rely on the ordinance when representing clients whether in discussions with a landlord or in court. Additionally, the urgency ordinance will preclude a landlords from shutting off utilities except in the event of an emergency.The ordinance will provide an additional aid to preserve housing for tenants during this crisis. Staff would also work with the Rent Program to notify landlords and tenants about the new ordinance if adopted.
The urgency ordinance would be in effect for 60 days. If necessary due to the continuing state of emergency, the ordinance can be extended.
ALTERNATIVES
Staff recommends that the City Council adopt the urgency ordinance as described above.
The City Council could:
• Decide not to adopt an urgency ordinance and wait to see if the State adopts a statewide moratorium on evictions.
• Adopt the urgency ordinance and determine to repeal the ordinance in the event the State adopts a more robust moratorium on evictions.
• Direct staff to prepare a revised ordinance based on City Council direction. Such direction could include expanding the moratorium to cover evictions due to no fault of the tenant (owner move-in or removal from the rental market) unless necessary for the health and safety of tenants, neighbors, or the landlord, establishing the moratorium for 90 days, etc.
• Adopt a moratorium on evictions and not or non-emergency utility shut-offs or adopt a moratorium on non-utility emergency shut-offs but not on evictions.
• Direct staff to prepare an urgency ordinance that establishes a moratorium on evictions regardless of the reason for non-payment of rent (i.e., the tenant would not have to establish that the inability to pay rent was directly linked to COVID-19). While there may be an argument for such a broad moratorium (it could be hard to find housing in this rental market if evicted thus increasing the likelihood of homelessness, etc.), staff has not been able to identify an urgency ordinance with such a broad scope.
FINANCIAL IMPACT
There is no impact to the General Fund from adopting an urgency ordinance establishing a moratorium on evictions due to loss of income resulting from the COVID-19 pandemic and precluding landlords from shutting off utilities for non-emergencies. The ordinance will be relied upon as an affirmative defense in a court proceeding for an unlawful detainer. Therefore, there is no staff work associated with implementing the ordinance.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This Ordinance is proposed and drafted pursuant to the City’s general police powers, Section 3-12 of the Charter of the City of Alameda, Article XI of the California Constitution, and Government Code Section 36937.
ENVIRONMENTAL REVIEW
Adoption of this ordinance is exempt from review under the California Environmental Quality Act: Section 15378 (not a project); and Section 15061(b)(3) (no significant environmental impact.
CLIMATE IMPACTS
There are no climate impacts to adopting an ordinance establishing a moratorium on evictions due to loss of income resulting from the COVID-19 pandemic and precluding landlords from shutting off utilities for non-emergencies.
RECOMMENDATION
Adopt an urgency uncodified Ordinance Imposing within the City of Alameda a Temporary (60-Day) Moratorium on (A) Evictions from all Residential Rental Units due to the COVID-19 Pandemic and (B) Landlords’ Shutting off Utilities in Rental Units Except for Emergency Situations.
CITY MANAGER RECOMMENDATION
The City Manager concurs with staff’s recommendation.
Respectfully submitted,
Debbie Potter, Community Development Director
cc: Eric Levitt, City Manager