On March 27, 2020, Governor Gavin Newsom issued Executive Order N-37-20 (the “Order”), which imposes a statewide moratorium on residential evictions for nonpayment of rent related to COVID-19.

The Order builds on previous Executive Order N-28-20, which authorized local governments to suspend evictions for commercial and residential renters during the COVID-19 state of emergency. Now, under this Order, all residential tenants statewide cannot be evicted if they cannot pay rent due to COVID-19. The Order also prohibits enforcement of evictions of residential tenants who are unable to pay rent due to COVID-19 while the Order is in effect.

Residential tenants are not completely off the hook for rent, however. The Order requires tenants to declare in writing, no more than seven days after the rent comes due, that the tenant cannot pay all or part of their rent due to a COVID-19-related economic hardship. Tenants are required to document their inability to pay but are not required to submit the documentation to their landlord in advance. The Order does not relieve tenants of liability for unpaid rent and Governor Newsom has stated that tenants will be required to pay the back-due rent in a timely manner.

In addition, the Order does not prohibit residential evictions for reasons other than non-payment of rent. Tenants who can pay all or some of the rent due are still obligated to pay that rent in a timely manner and could still face eviction when the moratorium is lifted.

Further, the statewide moratorium on evictions only applies to residential tenants. It does not apply to commercial properties. However, the Order does not invalidate provisions of Executive Order N-28-20 about commercial evictions and foreclosures. Thus, even though there is no statewide enforcement, banks and other financial institutions are still encouraged to halt foreclosures and related evictions and local governments are still authorized to impose limitations on commercial evictions.

A copy of the Order can be found here.

If you have any questions or concerns, you are welcome to contact the offices of Churchwell White at (916) 468-0950 or email Doug White at Doug@whitebrennerllp.com or Nubia Goldstein at Nubia@whitebrennerllp.com.