Glendale Makes Amendment to the Commercial Eviction Moratorium Order

On June 9, the Glendale City Council modified the Commercial Eviction Moratorium by providing that the moratorium does not apply to any commercial tenant that has eleven or more locations worldwide.

On June 2, the City Council amended the commercial eviction moratorium by: extending it to June 30, 2020; increasing the time period for commercial tenants to repay any back due rent to six months commencing upon the expiration of the moratorium on June 30, 2020; and providing that the moratorium does not apply to any commercial tenant that: had 100 employees or more pre-COVID (prior to March 16, 2020) that work in Glendale’s jurisdiction.

If a commercial property is unqualified from the amended order as described above, the company would have three months to repay any back due rent starting from the expiration of the Order (June 30, 2020). An additional rent repayment measure was passed that requires ineligible tenants to pay at least one-third of back due rent at the end of each month of the three-month repayment period, unless the landlord and tenant agree to different repayment terms. At the end of the three-month period, the tenant is required to pay the rest of the back due rent.

  The moratorium does not apply to publicly traded companies. The moratorium is valid only for those tenants unable to pay rent for a COVID-19- related reason such as a loss of income associated with Safer at Home Orders. Tenants are still required to pay their rent.

To date, the City Council has moved forward with several economic development efforts intended to provide resources or financial assistance to local businesses negatively impacted by the economic fallout associated with COVID-19. On May 19, the Council directed the inclusion of funding of several economic development and recovery programs into the fiscal year 2020-21 budget from Measure S funding, including: Small business recovery and assistance programs, Personal Protective Equipment (PPE) grants, Support the Arts programming, child care support, and Enhancing Access to Emergency Recovery.