CARLSBAD — Evictions are a looming issue for both residents and businesses.
During its Sept. 15 meeting, the City Council took a report from Deputy City Attorney Cindy McMahon on upcoming state and federal timelines and deadlines for potential evictions due to the COVID-19 pandemic.
Gov. Gavin Newsom signed an executive order on April 7 to allow for rental deferments, which is set to expire on Sept. 30. The order allows for the temporary suspension for nonpayment of rent, although tenants must notify their landlord within 10 days, provide verification for income or revenue decreases, why they cannot pay rent, which must be related to the pandemic, McMahon said.
However, the state legislature passed Assembly Bill 3088 earlier this year, which gives tenants unable to pay rent deferments from Sept. 1 through Jan. 31, 2021. Even so, tenants must pay at least 25% of rent by Jan. 31 to avoid eviction and provide documentation related to COVID-19, McMahon said.
According to the law, she added, tenants must provide a declaration of financial distress due to COVID-19. Additionally, the law does not relieve obligation for unpaid rent, while also not providing any repayment or grace period and limiting locally established repayment. McMahon said on March 1, 2021, small claims courts open.
“It effectively reforms those local efforts and cannot start before Mar. 1, 2021,” she said. “Evictions for nonfinancial reasons, such as nuisance, may resume on Oct. 1.”
A motion by Councilwoman Cori Schumacher to allow businesses an extension on the repayment term from three months to six months for permit or rent failed, 2-2.
David Graham, Carlsbad’s chief innovation officer, said the city has received about two dozen contacts regarding the moratorium and mediation requests stemming from eviction disputes.
Regardless, he briefed the council on other initiatives to keep businesses open, employees working and income flowing. The city approved its Economic Recovery Revitalization Initiative earlier this year allowing for $4 million in small business loans with an additional $1 million for marketing and other logistics.
The city, along with the Carlsbad Village Association, Carlsbad Chamber of Commerce and Visit Carlsbad, launched its Gift Carlsbad shop local gift card program. Also, the city has enacted a temporary suspension of development standards, Graham said.
Jeff Murphy, director of community development, said he’s received interest from a company looking to conduct COVID-19 testing in the parking lot of The Shoppes at Carlsbad. The city owns the parking lot.
Additionally, the city is allowing expanded business operations on the parking lot, suspending the permit time period, indemnifying the city with a private property permit and requiring insurance — all of which was approved by the Council.
