Loading...
HomeMy WebLinkAboutOrdinance 2824 N.C.S. 09/12/2022 DocuSign Envelope ID:01A1F17A-E65D-4840-90C4-D2C8915BD04E EFFECTIVE DATE URGENCY ORDINANCE NO. 2824 N.C.S. OF ORDINANCE September 12, 2022 Introduced by: D'Lynda Fischer Seconded by: Brian Barnacle AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA RESTRICTING RESIDENTIAL EVICTIONS IN THE CITY OF PETALUMA DUE TO THE PUBLIC HEALTH EMERGENCY ARISING FROM COVID-19 TO TAKE IMMEDIATE EFFECT AND TO EXPIRE ON THE DATE THE PETALUMA RESIDENTIAL TENANCY PROTECTIONS IN MUNICIPAL CODE CHAPTER 6.60 TAKE EFFECT PURSUANT TO ORDINANCE 2823 N.C.S. WHEREAS, Section 76A of the Petaluma City Charter authorizes the adoption of ordinances for the immediate preservation of the public peace, health and safety, that contain a declaration of and the facts constituting the ordinance's urgency, so long as they are passed by a unanimous vote of the Council members present at the time of adoption; and WHEREAS, Government Code Section 36937(b) authorizes the adoption of urgency ordinances for the immediate preservation of the public peace, health and safety; and WHEREAS, in enacting this ordinance,the City Council is relying on the City's police power and home rule authority pursuant to Article XI, Sections 5 and 7 of the California Constitution to enact and enforce ordinances and regulations for the public peace, morals, and welfare of the City and its residents, as well as the authority in Civil Code Section 1179.05, part of the COVID-19 Tenant Relief Act, and other applicable law; and WHEREAS, COVID-19 (also known as the "Coronavirus Disease") is a respiratory disease which was first detected in China and has now spread across the globe, with millions of confirmed cases in California, including cases in the City of Petaluma; and WHEREAS, international, national, state, and local health and governmental authorities have been responding to COVID-19 and its effects; and WHEREAS, on January 31, 2020, the United States Secretary of Health and Human Services declared a public health emergency based on the threat caused by COVID-19, and the President of the United States issued a Proclamation Declaring a National Emergency Concerning COVID-19 beginning March 1, 2020; and WHEREAS, on March 4, 2020, Governor Gavin Newsom proclaimed a State of Emergency to exist in California as a result of the threat of COVID-19; and WHEREAS, on March 9, 2020,the City Manager of the City of Petaluma proclaimed the existence of a local emergency related to the COVID-19 threat; and WHEREAS,the World Health Organization announced on March 11,2020,that it has characterized COVID- 19 as a pandemic; and WHEREAS, on March 16, 2020, the City Council adopted Resolution No. 2020-040 N.C.S. which ratified the local emergency proclamation related to COVID-19; and Urgency Ordinance No. 2824 N.C.S. Page 1 DocuSign Envelope ID:01A1F17A-E65D-4840-90C4-D2C8915BD04E WHEREAS, on March 16, 2020, the Governor of the State of California issued Executive Order N-28-20, wherein he found that"the economic impacts of COVID-19 have been significant and could threaten to undermine Californians' housing security and the stability of California businesses," and that "many Californians are experiencing substantial losses of income as a result of business closures, the loss of hours or wages, or layoffs related to COVID-19, hindering their ability to keep up with their rents, mortgages, and utility bills;" and Executive Order N-28-20 authorized local agency adoption of eviction protections for tenants unable to pay rent due to COVID-19 related financial distress, and the executive order suspended statutes in the Civil Code that could have the effect of preempting local agency adoption of eviction protections; and WHEREAS, since the declaration of a national public health emergency on January 31, 2020, the COVID- 19 pandemic has caused employers to discharge, layoff and furlough workers on a massive scale; and WHEREAS, many residents in the City of Petaluma continue to experience sudden and substantial income loss due to business downturns, layoffs, reductions in work hours and extraordinary medical expenses, making it challenging to pay rent on time and thus, making the prospect of eviction more likely; and WHEREAS, housing instability continues to threaten the public health, safety and welfare as evictions can lead to homelessness; loss of community; stress and anxiety caused by the experience of displacement; and increased incidence of families moving into overcrowded conditions, creating greater risk of the spread of COVID-19; and WHEREAS, without local protections, eviction notices for failure to pay rent may increase in Petaluma following the expiration of Sonoma County's COVID-19 related eviction protections on September 22,2022; and WHEREAS, it continues to be in the Petaluma community's interest, to the maximum feasible extent, to prevent displacement and homelessness due to evictions for non-payment of rent related to the COVID-19 emergency, while also protecting the right of landlords to be paid the rent they are owed; and WHEREAS, the displacement of individuals may result in the greater spread of COVID-19; and WHEREAS, studies overwhelmingly demonstrate that moving in the middle of a school year can be harmful to children, because residential instability can have a negative effect on a child's academic performance, social relationships, and mental health'; and WHEREAS, on September 13, 2021, City Council declared a shelter crisis in the City of Petaluma; and WHEREAS, on August 1, 2022, City Council introduced Ordinance No. 2823 regarding residential tenancy protections which adds Chapter 6.60 to the Petaluma Municipal Code and the second reading of Ordinance No. 2823 is scheduled on September 12, 2022; and WHEREAS, given the severe consequences to public health and safety throughout the City of Petaluma that would result from evictions of residential tenants during the State of Emergency, the City Council finds and determines that a temporary moratorium on evictions due to non-payment of rent because of tenant financial distress as a result of COVID-19 is necessary to minimize evictions and thereby preserve the public,health,safety, and welfare; and 1 The Negative Effects of Instability on Child Development:A Research Synthesis(2013)Heather Sandstrom&Sandra Huerta.Urban Institute.https://www.urban.org/sites/default/files/publication/32706/412899-The-NegativeEffects-of-Instability-on-Child- Development-A-Research-Synthe sis.PDF Urgency Ordinance No. 2824 N.C.S. Page 2 DocuSign Envelope ID:01A1F17A-E65D-4840-90C4-D2C8915BD04E WHEREAS, preventing further displacement and homelessness due to evictions for non-payment of rent related to the COVID-19 emergency remains an important goal for protecting the health and safety of Petaluma residents; and WHEREAS, the declared federal, California, and Petaluma emergencies due to COVID-19 remain in effect; and WHEREAS, as of September 1, 2022, there have been 104,670 COVID -19 cases and 510 deaths due to COVID-19 in Sonoma County; an& WHEREAS,the overall 7-day average of new cases per 100,000 residents in Sonoma County per day is 14.6 and this number is expected to increase due to the start of the school year and as the County transitions into flu season; and WHEREAS, the federal and California eviction moratoriums in response to the COVID-19 pandemic have ended and the Sonoma County eviction moratorium is set to expire on September 22, 2022; and WHEREAS, this ordinance is exempt from the requirements of the California Environmental Quality Act ("CEQA") because enactment of this ordinance does not qualify as a "project" within the meaning of Section 15378 of the CEQA Guidelines, as enactment of this ordinance is administrative activity that has no potential for resulting in physical change in the environment, and this ordinance adopts residential tenant protection measures for existing residential units in Petaluma,which is a solely administrative process resulting in no physical changes to the environment, and this ordinance contains no provisions affecting the physical design, development, or construction of residences or nonresidential structures; and WHEREAS, this action is also exempt from the requirements of CEQA pursuant to the "Emergency Exception" in CEQA Guideline Section 15269(c) as this action is necessary to both mitigate the housing crisis emergency in Petaluma and to respond to financial distress due to COVID-19 that may prevent Petaluma tenants from paying rent; and WHEREAS, on September 12, 2022, the Petaluma City Council considered this urgency ordinance at a duly noticed public meeting at which time all interested members of the public were provided the opportunity to provide public comment. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Petaluma, as follows: Section 1. Recital Finding. The City Council hereby finds the above recitals to be true and correct and incorporates them into this ordinance as findings of the City Council. Section 2. Civil Code Section 1946.2(g)(1)(B) Finding. This ordinance is more protective than the Tenant Protection Act of 2019 in accordance with Section 1946.2(g)(1)(B) of that act because this ordinance further limits the reasons for termination of a residential tenancy. Section 3. Urgency Finding. Adoption of this ordinance as an urgency ordinance with immediate effect is necessary for the preservation of the public health, safety and welfare in accordance with Section 76A of the Petaluma City Charter because during the local COVID-19 emergency and in the interest of the public health and safety, it is essential to provide residential tenants with short-term protection from eviction due to the inability to pay rent because of financial distress resulting from COVID-19, and to avoid increasing homelessness by minimizing displacement. The United States, California, and Petaluma are still under declared emergencies due z Sonoma County Coronavirus Cases-Sonoma County Emergency and Preparedness Information(socoemergency.org) Urgency Ordinance No. 2824 N.C.S. Page 3 DocuSign Envelope ID:01A1F17A-E65D-4840-90C4-D2C8915BD04E to COVID-19 and Petaluma is also in a declared housing crisis. With no federal and state tenant protections in response to financial distress due to COVID-19, and Sonoma County's eviction moratorium in response to COVID-19 ending on September 22, 2022,there is the potential for Petaluma tenants to lose their housing due to financial distress related to COVID-19. Additionally, for the reasons set forth above, this ordinance is declared by the City Council to be necessary for preserving the public, health, safety, and welfare, and for avoiding a current, immediate and direct threat to the health, safety and welfare of the community resulting from housing instability due to COVID-19 related financial distress, and the recitals in this ordinance, and information contained in the staff report accompanying this ordinance,which is made a part of this ordinance by this reference, taken together,constitute the City Council's statement of the reasons constituting the urgent necessity for adopting this ordinance in accordance with Section 76A of the Petaluma Charter, Government Code Section 36937(b), and other applicable law. Section 4. CEQA Finding. This Ordinance is exempt from the requirements of the California Environmental Quality Act ("CEQA") because enactment of this ordinance does not qualify as a "project" within the meaning of Section 15378 of the CEQA Guidelines. Enactment of this ordinance is administrative activity that has no potential for resulting in physical change in the environment, because this ordinance adopts residential tenant protection measures for existing residential units in Petaluma, which is a solely administrative process resulting in no physical changes to the environment,and this ordinance contains no provisions affecting the physical design, development,or construction of residences or nonresidential structures. This action is also exempt pursuant to the "Emergency Exception" in CEQA Guideline Section 15269(c) as this action is necessary to both mitigate the housing crisis emergency and to respond to financial distress due to COVID-19 that may prevent Petaluma tenants from paying rent. Section 5. Umency Findings and Effective Date. This ordinance is hereby declared to be necessary for the immediate preservation of the public peace, health and safety of the City of Petaluma and its citizens, and shall take effect and be in force from and after its passage by unanimous vote of the members of the City council present in accordance with Section 76A of the Petaluma City Charter and Section 36937 of the California Government Code. Section 6. Urgency Ordinance Enacted. I. Title. This ordinance shall be known as the "COVID-19 Eviction Protection Urgency Ordinance". II. Definitions. A. "COVID-19 Financial Distress" means: loss of income caused by the COVID-19 pandemic; increased out-of-pocket expenses directly related to performing essential work during the COVID-19 pandemic; increased expenses directly related to health impacts of the COVID-19 pandemic; childcare responsibilities or responsibilities to care for an elderly, disabled, or sick family member directly related to the COVID-19 pandemic that limit a person's ability to earn income; and other circumstances related to the COVID-19 pandemic that have reduced a tenant's income or increased tenant's expenses, in accordance with Code of Civil Procedure Section 1179.02, subdivision(b),part of the Tenant Relief Act, as amended from time, and any successor statute. B. "Declaration of COVID-19-related financial distress" means the following written statement, in accordance with Code of Civil Procedure Section 1179.02, subdivision(d), part of the Tenant Relief Act, as amended from time, and any successor statute: I am currently unable to pay my rent or other financial obligations under the lease in full because of one or more of the following: 1. Loss of income caused by the COVID-19 pandemic. Urgency Ordinance No. 2824 N.C.S. Page 4 DocuSign Envelope ID:01A1F17A-E65D-4840-90C4-D2C8915BD04E 2. Increased out-of-pocket expenses directly related to performing essential work during the COVID-19 pandemic. 3. Increased expenses directly related to health impacts of the COVID-19 pandemic. 4. Childcare responsibilities or responsibilities to care for an elderly, disabled, or sick family member directly related to the COVID-19 pandemic that limit my ability to earn income. 5. Increased costs for childcare or attending to an elderly, disabled, or sick family member directly related to the COVID-19 pandemic. 6. Other circumstances related to the COVID-19 pandemic that have reduced my income or increased my expenses. Any public assistance, including unemployment insurance, pandemic unemployment assistance, state disability insurance (SDI), or paid family leave, that I have received since the start of the COVI D-19 pandemic does not fully make up for my loss of income and/or increased expenses. I declare that the foregoing statements are true and correct and that this declaration is signed under penalty of perjury under the laws of the State of California: Declarant Dated: C. "Landlord" means any natural person, partnership, corporate or fictitious entity, acting as a lessor or sublessor,whether as a principal or through an agent,who receives or is entitled to receive rent in exchange for the use or occupancy of any residential unit for rent, and includes a predecessor in interest. D. "Notice demanding payment of rent" means any notice demanding payment of rent or any notice informing a tenant of the termination of the tenant's right to occupy a Residential Unit in accordance with applicable California law, including but not limited to a 3- or 30-day notice to pay or quit. E. 'Rent" means the consideration, including any funds, labor, bonus, benefit, or gratuity, demanded or received by a landlord for or in connection with the use and occupancy of a residential unit and the housing services provided therewith, or for the assignment of a rental agreement for a residential unit. F. 'Residential unit" means a structure or the part of a structure, including, but not limited to, houses, apartments, mobile homes and recreational vehicles, that is used as a home, residence, or sleeping place by one person who maintains a household or by two or more persons who maintain a common household. G. "Tenancy" means the occupancy of residential unit(s). H. "Tenant" means a residential tenant, subtenant, lessee, sublessee, or any other person entitled by written or oral rental agreement, or by sufferance, to use or occupancy of a residential unit. III. Moratorium on Rental Evictions A. A temporary moratorium on eviction from residential units for non-payment of rent by tenants impacted by the COVID-19 crisis is imposed as follows: No landlord or owner of residential unit(s) shall endeavor to evict a tenant or otherwise require a tenant to vacate if the tenant has provided a Declaration of COVID-19-related financial distress to the landlord, Urgency Ordinance No. 2824 N.C.S. Page 5 DocuSign Envelope ID:01A1F17A-E65D-4840-90C4-D2C8915BD04E owner, or landlord's or owner's representative within 15 days after receiving notice demanding payment of rent, that the tenant is unable to pay rent due to COVID-19 financial distress, as further detailed below: 1. With respect to tenants who provide the Declaration of COVID-19-related financial distress provided above, landlords are prohibited from engaging in any of the following actions for non- payment of rent between September 12, 2022, and the date the Petaluma Residential Tenancy Protections in Municipal Code Chapter 6.60 take effect pursuant to Ordinance 2823 N.C.S: a. Serving a notice of termination of tenancy; b. Filing or serving an unlawful detainer lawsuit, ejectment action, or other action to recover possession of a residential unit; or c. Evicting a tenant or requiring a tenant to vacate a residential unit, including by seeking the entry of an eviction judgment or by causing or permitting a writ of possession to be executed, including in the case of judgments entered prior to the date of this ordinance. B. A landlord who has been provided with a Declaration of COVID-19-related financial distress from a tenant shall not serve on that tenant a notice pursuant to CCP 1161(2), file, prosecute, or otherwise pursue an unlawful detainer action based on a notice of termination served on that tenant, or otherwise seek to evict that tenant for nonpayment of rent. C. Actions to recover an unpaid COVID-19 rental debt, as defined in Section 1179.02 of the Code of Civil Procedure, are governed by SB 91, enacted January 29, 2021, and nothing in this ordinance shall be construed to supersede or conflict with SB 91. D. A landlord may not take any actions to evict or attempt to evict a residential tenant unless the landlord demonstrates that the landlord provided a copy of the following notice in at least 12-point font to tenants when serving tenants with a notice demanding payment of rent: "NOTICE: THE CITY OF PETALUM HAS ADOPTED A TEMPORARY MORATORIUM ON EVICTIONS FOR RESIDENTIAL TENANTS FOR NONPAYMENT OF RENT DUE TO COVID19. THE EVICTIONS MORATORIUM TOOK EFFECT ON SEPTEMBER 12, 2022 AND WILL EXPIRE ON THE DATE THE PETALUMA RESIDENTIAL TENANCY PROTECTIONS IN MUNICIPAL CODE CHAPTER 6.60 TAKE FFECT PURSUANT TO ORDINANCE 2823 N.C.S. A COPY OF THE CITY'S EVICTION MORATORIUM ORDINANCE IS ATTACHED. During this moratorium, which expires on the date the Petaluma Residential Tenancy Protections in Municipal Code Chapter 6.60 take effect pursuant to Ordinance 2823 N.C.S., if you are unable to pay the amount demanded in this notice, and have decreased income or increased expenses due to COVID-19, your landlord will not be able to evict you for this missed payment if you sign and deliver the declaration form included with this notice to your landlord within 15 days, excluding Saturdays, Sundays,and other judicial holidays,but you will still owe this money to your landlord. If you do not sign and deliver the declaration within this time period, you may lose the eviction protections available to you. You must return this form to be protected. You should keep a copy or picture of the signed form for your records. You will still owe this money to your landlord and can be sued for the money, but you cannot be evicted from your home if you comply with these requirements. You should keep careful track of Urgency Ordinance No. 2824 N.C.S. Page 6 DocuSign Envelope ID:01A1F17A-E65D-4840-90C4-D2C8915BD04E what you have paid and any amount you still owe to protect your rights and avoid future disputes. Failure to respond to this notice may result in an unlawful detainer action (eviction) being filed against you. E. For purposes of this ordinance, the Declaration of COVID-19 related financial distress maybe provided in writing, including through paper copy, email, or text communications to a landlord or the landlord's representative with whom the residential tenant has previously corresponded by email or text. F. Landlords of residential unit(s), and those acting on their behalf, are prohibited from harassing or intimidating residential tenants for acts or omissions expressly permitted under this ordinance. G. Nothing in this ordinance shall relieve the tenant of liability for the unpaid rent, nor restrict a landlord's ability to recover rent due; provided landlord's actions taken to recover said rent are consistent with this ordinance. A tenant shall not be deemed in default of rent payment obligations unless the tenant fails to tender rent payments which were unpaid due to COVID-19 Financial Distress, within 90 days after the expiration or termination date of this ordinance, and in no event shall the repayment period extend beyond August 31, 2023. H. A landlord may not charge or collect a late fee for rent payment which is delayed because of COVID-19 financial distress. I. Landlords and tenants of residential units are encouraged to agree on a payment plan that would allow landlords to accept partial rent payments during the term of the eviction moratorium if tenants are able to make such payments. J. The remedies available under this ordinance shall be in addition to any existing remedies which may be available to the residential tenant under local, state or federal law. K. The moratorium on evictions enacted by this ordinance shall become effective on September 12, 2022, and will remain in effect through the date the Petaluma Residential Tenancy Protections in Municipal Code Chapter 6.60 take effect pursuant to Ordinance 2823 N.C.S. unless repealed or superseded by local action, or state or federal law. L. This ordinance applies to terminations of tenancies for nonpayment of rent, including eviction notices and unlawful detainer actions based on such notices, served or filed during the effective period of this ordinance. M. Notwithstanding anything to the contrary in this ordinance, in accordance with Code of Civil Procedure Section 1179.05, subdivision (b), Part of the Tenant Relief Act, this ordinance shall not apply to rental payments that became due between March 1, 2020 and June 30, 2022. IV.Affirmative Defense to Eviction, Unlawful Detainer Action; Civil Remedies. This ordinance grants a defense where an unlawful detainer action is commenced in violation of this ordinance. Additionally,an aggrieved tenant may institute a civil proceeding for injunctive relief,money damages of not less than three times actual damages, and whatever other relief the court deems appropriate. The prevailing party shall be entitled to reasonable attorney's fees and costs as determined by the court. The remedies available under this section shall be in addition to any other existing remedies which may be available to the tenant under local, state or federal law. Urgency Ordinance No. 2824 N.C.S. Page 7 DocuSign Envelope ID:01A1F17A-E65D-4840-90C4-D2C8915BD04E Section 6. Sunset/Repeal. This ordinance will terminate on the date the Petaluma Residential Tenancy Protections in Municipal Code Chapter 6.60 take effect pursuant to Ordinance 2823 N.C.S. or the City Council may repeal this ordinance by duly adopted resolution upon finding that the conditions warranting the enactment of this ordinance no longer apply in the city,whatever occurs first. Section 7. Severability. If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. Section 8. Posting/Publishing of Notice. The City Clerk is hereby directed to post/publish this ordinance or a synopsis of this ordinance for the period and in the manner required by the City Charter. ADOPTED this 12th day of September 2022 by the following vote: Ayes: Barrett, Barnacle, Fischer, Healy, King, Pocekay Noes: None Abstain: None Absent: None Recused: McDonnell DocuSigned by: Teresa Barrett, Mayor ATTEST: APPROVED AS TO FORM: DocuSigned by: DocuSigned by: F1� Ken a awyer, CMC, City Clerk Eric Dan y, ity Attorney Urgency Ordinance No. 2824 N.C.S. Page 8