Commercial Evictions as Pandemic Eviction Relief Policies End

In brief 

Property owners considering commercial tenant eviction should first review and understand any local government COVID-19 commercial tenant protections. Everview can assist clients to navigate federal, state, and local policies.

In detail

Many federal and statewide COVID-19 relief programs, including commercial tenant eviction protections, have already or are set to lapse. Still, some local jurisdictions continue to provide commercial eviction protection, while others do not.

In order to contextualize existing local eviction protections, the various California Executive Orders that provided commercial eviction protection are summarized below:

• Executive Order (EO) N-28-20 (March 2020) allowed local governments to limit commercial evictions due to nonpayment of rent due to reduced business from the government’s response to COVID-19.

• EO N-80-20 (September 2020) extended the EO N-28-20 protections summarized above until March 2021.

• EO N-08-21 (June 2021) extended the EO N-28-20 protections summarized above until September 2021.

The specific protections afforded to commercial tenants, if any, were determined by local jurisdictions. Generally, in those local jurisdictions that chose to enact commercial eviction limitations, a commercial tenant that provided documentation showing reduced business due to COVID-19 could not be evicted for non-payment of rent. These moratoria did not apply to other grounds for eviction, such as a material breach of some other lease term, and the tenant could still be evicted under such grounds, regardless of limitations.

Since September 2021, many jurisdictions have removed limitations on commercial evictions. Still others have extended their programs. For instance, the City of Los Angeles extended certain commercial eviction protections until December 2022.

Therefore, if a property owner is considering pursuing an eviction of a commercial tenant, it is important to review and understand the local government’s COVID-19 commercial tenant protections, to the extent that they still exist. Moreover, it is important to consider the basis for the eviction. If the basis for the eviction is nonpayment of rent, the protections that still exist may prevent the eviction. If, however, the eviction is related to some other term, then the eviction protections may not apply.

Everview can assist clients to navigate federal, state, and local policies.