The COVID-19 pandemic continues to affect the commercial real estate market, and the San Francisco Board of Supervisors is pursuing relief for certain categories of commercial tenants, including adoption of an ordinance creating a rebuttable presumption that a commercial tenant’s legally required shutdown excuses rent owed for the shutdown period.

We previously reported on San Francisco’s eviction protection for “Covered Commercial Tenants,” which are tenants (1) registered to do business in San Francisco, and (2) with combined worldwide gross receipts for tax year 2019 equal to or below $25 million. Covered Commercial Tenants do not include for-profit entities occupying space in property zoned or approved for Office Use, nor entities leasing property from the City and County of San Francisco.

Covered Commercial Tenants are currently protected from evictions for COVID-19 related missed rent payments that came due between March 16, 2020 and September 30, 2021. After September 30, 2021, unless the Governor further extends his executive order allowing for local jurisdictions to protect commercial tenants from eviction, Covered Commercial Tenants with 50 or more full time equivalent (“FTE”) employees will be required to immediately pay any unpaid rent owed to their landlords, while smaller Covered Commercial Tenants will be entitled to a forbearance period after September 30, 2021 ranging from 12 to 24 months.

On July 20, the Board of Supervisors took further action that would effectively forgive some past due rent from certain Covered Commercial Tenants, even after their applicable forbearance period expires.
Continue Reading San Francisco Board of Supervisors Adopts Further Commercial Tenant Relief in Response to COVID-19 Pandemic

Since we last reported on this topic, many of the residential and commercial eviction moratoriums that were enacted in response to the COVID-19 pandemic have been amended, replaced and/or extended. These moratoriums are generally set to expire on June 30, 2021. Depending on how COVID vaccination and the broader economic recovery play out in the coming months, these moratoriums may be further extended.
Continue Reading UPDATE – Status of Eviction Moratoriums Protecting Residential and Commercial Tenants in Response to COVID-19 Pandemic

In 1978, California voters passed Proposition 8, which amended the California Constitution to allow a temporary reduction in assessed value when the market value of a property has fallen below its factored base year value as of the January 1 lien date (a “Prop. 8 Reduction”). Because residential properties change hands much more frequently, California Assessors have access to enough information to understand what the market value of a residential property is for purposes of reviewing applications for Prop. 8 Reductions.
Continue Reading San Francisco Considers Reducing Commercial and Condominium Tax Assessments Pending Data on How the Pandemic has Impacted Property Values

As previously reported on the Unfamiliar Terrain blog, San Francisco Mayor London Breed declared a moratorium on evictions of small and medium-sized businesses (those having worldwide receipts of $25 million or less) impacted by COVID-19 for non-payment of rent. By supplemental declaration on April 1, Mayor Breed ordered that the moratorium also applies to non-replenishment of security deposits. The April 1 supplemental declaration is the eighth of ten supplemental declarations (as of April 21, 2020) to the Mayor’s Proclamation of Local Emergency.
Continue Reading San Francisco Commercial Eviction Moratorium Applies to Security Deposits

We last reported on the Unfamiliar Terrain blog that California Governor Gavin Newsom banned the enforcement of residential evictions against qualified California tenants who fail to pay rent. Less than two weeks later, on April 6, the California Judicial Council substantially expanded statewide tenant protections and eliminated the qualifications for protection. With the Council’s action, residential and commercial tenant eviction lawsuits cannot be initiated during the state of emergency and for 90 days after, regardless of the cause and regardless of the financial condition of the tenant. Eviction actions already in process will be postponed by at least 60 days. The only exceptions are evictions that are necessary for the public health or safety.
Continue Reading California Judicial Council Postpones Residential and Commercial Evictions

UPDATED ON APRIL 22, 2020

On March 19, 2020, Governor Newsom issued a “Safer at Home” Order, which generally permits construction, including housing, to continue statewide. On March 31, 2020, six Bay Area counties – Alameda, Contra Costa, Marin, San Francisco, San Mateo, and Santa Clara – as well as the City of Berkeley, coordinated on and each issued updated local shelter-in-place orders extending and further restricting non-essential activities through May 3, 2020. Among other things, the local orders notably limit the types of construction permitted beyond the State’s Order and require those permissible construction activities to create and implement a “Social Distancing Protocol.”
Continue Reading Bay Area Further Restricts Construction in Response to COVID-19

As we previously reported, in the past two weeks, the federal government, the state of California, and many local governments have taken action to provide tenant and homeowner protections in response to the COVID-19 pandemic.
Continue Reading UPDATE – Emergency Protections in Place for Tenants and Homeowners in Response to COVID-19 Pandemic