City staff and the City Attorney recommend that the City Council approve and adopt an urgency ordinance that establishes a temporary moratorium on evictions due to nonpayment of rent for residential and commercial tenants where the failure to pay rent is from income loss resulting from the coronavirus (COVID-19). 

In the interests of protecting the public health and welfare, and to help prevent transmission of the coronavirus, it is essential to avoid unnecessary displacement, business closures, and homelessness during a state of emergency.  The urgency ordinance would place a temporary moratorium on residential and commercial evictions due to a substantial loss of income resulting from COVID-19. The tenant would have a substantive eviction defense if an eviction proceeding (an unlawful detainer) were filed against 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.

The ordinance would take effect immediately and would be in effect until May 31, 2020, the expiration of the local emergency or the Governor’s proclamation of a state of emergency, whichever is later.

The World Health Organization (“WHO”), Centers for Disease Control and Prevention (CDC”), the Secretary of the United States Department of Health and Human Services, and the Alameda County Department of Public Health have all recognized the public safety risks posed by the COVID-19 pandemic.  Additionally, the Governor of the State of California proclaimed a state of emergency, the President of the United States declared a national state of emergency, and the Alameda County Health Officer declared a local health emergency in response to the spread of COVID-19.

Subsequently, the Alameda County Health Officer, along with six other health officers within six Bay Area counties, issued a legal order directing residents of Alameda County to shelter at home beginning March 17, 2020 through April 7, 2020.  The order limits activity, travel, and business functions to only the most essential needs.  The City Manager, acting as Director of Emergency Services, proclaimed a local emergency related to the COVID-19 pandemic and the City Council later ratified the Director of Emergency Services’ action.

On March 19, 2020, the Governor of California issued an executive order ordering all individuals within the State of California to stay home or at their place of residence, except for certain, limited, specified purposes.

Since the shelter at home orders of the Alameda County Health Officer and Governor, events of all sizes across the Bay Area and in Union City are being cancelled or postponed.  Additionally, many businesses are closing or dramatically limiting their operations. These developments are likely to result in significantly increased levels of unemployment and decreased incomes for many businesses and residents of Union City.  As a result, residential and commercial tenants have likely experienced, or will shortly experience, sudden income loss, and further income impacts are anticipated, due to temporarily being unable to report to work because of illness caused by COVID-19 or quarantines related to COVID-19, taking care of family members that have become ill due to COVID-19, the closure of schools and daycare and the need to take care of children at home, taking care of elderly family members who are in quarantine, shelter-in-place or affected by COVID-19, and/or lay-offs due to business slow-downs and closures, leaving tenants vulnerable to eviction. 

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 the effective date of the ordinance.  By providing a substantive eviction defense to a tenant, the ordinance would place a temporary moratorium on eviction actions instituted for non-payment of rent where a tenant can demonstrate that the tenant suffered a substantial loss of income due to the COVID-19 pandemic.  The ordinance will not waive the payment of rent, but rather will delay an impacted tenant’s obligation to make rent payments during  period of the temporary moratorium.  

Impacts on loss of household income include income loss due to COVID-19 caused by:

• COVID-19 illness or caring for a household or family member with COVID-19 illness;

• work closures, layoffs, job loss, a reduction in the number of compensable hours or other economic or employer impacts; or

• missing work due to a minor child’s school closure, compliance with government health authority orders, or other similarly-caused reason.

Impacts on loss of business income include income loss due to COVID-19 caused by:

• work closures;

• reduction in staff reporting to work;

• reduction in opening hours;

• reduction in consumer demand;

• compliance with government health authority orders; or

• other similarly-caused reason resulting in loss of business income.

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 to the tenant’s loss of income as a result of COVID-19.  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.  The ordinance will help preserve housing for tenants, and relief from loss of business during this time of emergency. 

This urgency ordinance is essential to avoid unnecessary housing and commercial displacement, to mitigate the economic effects on small and medium sized businesses, and to prevent housed individuals from falling into homelessness.  A temporary moratorium on evictions from residential, and commercial rental units due to a substantial loss of income because of the COVID-19 pandemic will protect tenants from losing their housing and businesses, which will thereby protect the public health, safety and welfare, and prevent transmission of COVID-19.

Staff will also work to notify landlords, businesses, and tenants about the ordinance.

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.  The ordinance could 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 other than providing notification to the community.

City staff and the City Attorney recommend that the City Council approve and adopt an urgency ordinance that establishes a temporary moratorium on evictions due to nonpayment of rent for residential and commercial tenants where the failure to pay rent is from income loss resulting from the coronavirus (COVID-19).