Moschetti Law Group, PC

A real estate law firm serving Los Angeles County, Ventura County, and Orange County, as well as all of California.

July 5, 2020

While we are open for business, we are mindful of the health related risks posed by COVID-19 and are available for Virtual Zoom Consultations. Visit us online at https://moschettilaw.com, call us at (818) 743-2420, or email info@moschettilaw.com.

 

In this Episode:

Recording Of June 5th Webinar Now Available

Our successful webinar from June 5th is now available for those who weren't able to attend. We discussed the laws that govern commercial tenants and strategies landlords can take to collect back rent.

You can also find the video version of this podcast, transcript, and other material on our website at https://moschettilaw.com. You can also learn about other webinars we have done and find recordings of past webinars on important real estate law topics for investors, landlords, and syndicators.

 

Initiatives Set for November Election

Eleven measures have qualified for the November 3rd General Election ballot. Two are of immediate concern for property owners.

As expected the issue of rent control will be up for a vote again this year. Initiative 19-001 would repeal the Costa-Hawkins Rental Housing Act. If passed the initiative would cap how much landlords could raise rents following a vacancy. This misguided initiative is brought, yet again, by Michael Weinstein, president of the AIDS Healthcare Foundation, who brought a similar initiative in 2018.

A major attack on Proposition 13 with Initiative 19-008 would require commercial and industrial properties, except those zoned as commercial agriculture, to be taxed based on their market value. Rex Hime, president of the California Business Properties Association, stated, "California already has the worst climate for business and job creation in the country. A split-roll property tax will just increase pressure on many businesses that are already finding it hard to make ends meet."

 

Assembly Bill 1482 Deadlines July 1st and August 1st

Under Assembly Bill 1482, the State’s rent control and tenant protection law that became effective this year, owners of rental properties are required to disclose to renters effective July 1st for new lease agreements and effective August 1st for existing leases if your rental property is either exempt from Assembly Bill 1482 or covered by Assembly Bill 1482.

 

SB 939 Did Not Pass

Senate Bill 939 did not pass the senate appropriations committee despite recent changes made by its authors, Senator Scott Wiener and Senator Lena Gonzalez, which included limiting the moratorium length, requiring at least 25 percent of rent from tenants, and eliminating the provision that would have allowed tenants to break the lease if a new one was not agreed upon within 30 days.

The bill would have enacted a moratorium on commercial evictions for businesses and nonprofits with 500 or fewer employees that cannot pay rent due to the coronavirus state of emergency. SB 939 would have also allowed tenants in the hospitality sector to trigger renegotiations with landlords and modify existing leases if they lost more than 40 percent of their revenue, or if they operate at 25-percent reduced capacity due to extended social distancing requirements.

 

L.A. rushing ‘vacancy tax’ measure targeted for November ballot

The city of Los Angeles was rushing to place a “vacancy tax” measure on the November ballot that could create steep tax penalties for landlords with unoccupied units. After a letter-writing campaign spearheaded by the California Apartment Association, the City Council on Wednesday decided unanimously to wait until at least 2022 to place such a tax on the ballot.

 

SB 1410 would offer tax credits to landlords, protect tenants from eviction

Senate Bill 1410 would encourage landlords and tenants to make a deal under a “rent stabilization agreement” before a homeowner could throw someone out for failing to make rent.

The agreement would allow the tenant to defer rent during the coronavirus emergency without fear of being evicted. If the renter declines to make a deal, the landlord would have to secure a signature-verified document proving he or she attempted negotiations with the tenant.

The state would then assume the financial burden, and allow renters 10 years beginning in 2024 to pay back unpaid rent accumulated during COVID-19. Tenants could make payments incrementally or, if they can’t afford the installments, could receive loan forgiveness.

 

For More Information

While we are open for business, we are mindful of the health related risks posed by COVID-19 and are available for Virtual Zoom Consultations. Visit us online at https://moschettilaw.com, call us at (818) 743-2420, or email info@moschettilaw.com.

 

Brought to you by:

Moschetti Law Group, PC

23901 Calabasas Rd., Suite 1069

Calabasas, CA 91302

(818) 696-5007

https://moschettilaw.com

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