Small Business Eviction Can Kicked Down the RoadSeptember 30, 2020
With Governor Gavin Newsom having inked an extension of Executive Order N-28-20 last week, which will allow local jurisdictions in California to continue banning the eviction of commercial tenants impacted by the COVID-19 pandemic through March 31 of next year (2021), Mayor London Breed has just authorized a modified 60-day extension of San Francisco’s commercial eviction moratorium through (at least) November 30 of this year (2020).
San Francisco’s commercial eviction moratorium now applies to rents that were due from March 17, 2020 through November 30, 2020. And while the moratorium does not waive a commercial tenant’s obligation to pay any and all past-due rents once the moratorium expires, it prohibits most rent-based evictions during the moratorium period.
Landlords of buildings with “less than 25,000 square feet of rentable space” can, however, seek a waiver from the moratorium, “if the landlord can demonstrate that being unable to evict would create a significant financial hardship (for example, default on debt or similar enforceable obligation).” And the extended moratorium does not apply to tenants which are formula retailers.
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