Title
Recommendation to Authorize the City Manager to Offer Commercial Tenants in City-Owned Properties a Loan Conversion and Forgiveness Assistance Program in Response to the COVID-19 Pandemic. (Community Development 858)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The COVID-19 pandemic continues to impact communities around the world, including the City of Alameda (City). On March 17, 2020, the City Council adopted an urgency ordinance declaring a local emergency. The March 17 ordinance authorized certain actions until April 7, and was subsequently extended until the State's declaration of emergency is rescinded, or sooner should it be appropriate to lift the local emergency declaration prior to State action. On April 21, 2020, the Council discussed a rent deferral and abatement policy for commercial tenants in City-owned properties. City Council requested that staff come back with more information and recommendations for a rent relief program.
Staff's research into what other commercial landlords were doing revealed that rent abatement is not typically being offered. As an alternative to abating past due rent, staff recommends that the City Council provide a loan conversion assistance program to commercial tenants in City-owned properties who have been impacted by the COVID-19 pandemic. With the loan conversion approach, the City may agree to convert the past due rent into a loan payable over time or to convert some, or all, of the loan to a grant if certain conditions are met. Staff is recommending the loan conversion approach because it offers the City a great deal of flexibility and provides individualized assistance to tenants based on their situation. Staff asks that City Council provide direction regarding criteria for the rental assistance program.
BACKGROUND
On March 17, 2020, the City Council approved an ordinance which in part allows the City Manager to "evaluate and amend leases, licenses and other occupancy agr...
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