COVID-19 Fact Sheet Resources for Berkeley Tenants & Landlords

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COVID-19 Fact Sheet Resources for Berkeley Tenants & Landlords
COVID-19 Fact Sheet
                           Resources for Berkeley Tenants & Landlords
                                                Updated September 24, 2020

This document will be updated on a regular basis to reflect the most current information available.

Disclaimer: The Berkeley Rent Board has prepared this fact sheet to help the Berkeley community
understand the application of the statewide COVID-19 Tenant Relief Act of 2020 and Berkeley’s COVID-
19 Emergency Response Ordinance (B.M.C. Chapter 13.110). This information is solely advisory and
does not constitute legal advice. If you have questions about your particular situation, you can contact
the Public Information Unit at the Rent Board, but they will not provide legal advice. The Rent Board has
no jurisdiction to decide issues of possession in the event of an unlawful detainer (eviction lawsuit).
Those issues will ultimately be decided in court.

BACKGROUND: STATE OF EMERGENCY AT LOCAL, STATE AND NATIONAL LEVELS
Due to the COVID-19 crisis, the City of Berkeley declared a local State of Emergency on March 3, 2020
and the City has been under the Berkeley Health Officer’s Shelter-in-Place Order since March 16, 2020.
Note: As of September 23rd, the local State of Emergency has been extended through November 21,
2020. The State of Emergency may be extended again in the future.

RESPONSE: BERKELEY EMERGENCY RESPONSE ORDINANCE AND STATEWIDE EVICTION
MORATORIUM
Since the local State of Emergency was declared, government action has been taken at the local, state
and federal levels to minimize evictions. Most recently, a statewide eviction moratorium, adopted as
Assembly Bill 3088, the COVID-19 Tenant Relief Act of 2020, prohibits landlords from evicting residential
tenants who are unable to pay rent because of COVID-19-related financial distress. This state law
complements and, in some cases, replaces parts of the Berkeley Emergency Response Ordinance, which
was amended on May 26, 2020.

Under local and state law, residential evictions in Berkeley are prohibited except in the following cases:

    1. Ellis Act Evictions
    2. Evictions that are necessary for the health and safety of residents. The health and safety
       exception cannot be the resident’s actual or suspected COVID-19 illness or exposure.
    3. Some instances of nonpayment of rent. See below for more information.

WHAT ARE THE MAIN PROVISIONS OF THE STATEWIDE EVICTION MORATORIUM?
The state eviction moratorium protects qualifying tenants from eviction for non-payment of rent until
February 2021. Under the law, tenants must pay back at least 25% of the rent they owe between
September 1, 2020 and January 31, 2021 no later than January 31, 2021 to be protected from eviction.

The law also provides mortgage relief to homeowners and landlords with four or fewer properties who
have had difficulty making mortgage payments because of COVID-19. Property owners can find
additional information from the Business, Consumer Services and Housing Agency and should contact
their mortgage servicer directly for more information.

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If a tenant was unable to pay all or some of the rent between March 1, 2020 and August 31, 2020
     ● A landlord must provide the tenant with a Notice from the State of California (Notice for Code of
         Civil Procedure Section 1179.04(a)) by September 30, 2020. This notice informs tenants of their
         rights under the COVID-19 Tenant Relief Act of 2020
     ● A landlord may serve a tenant with a 15-day notice to pay rent or quit (a type of eviction notice).
         The notice must provide a notification that explains the tenant’s rights and obligations and an
         unsigned declaration of COVID-19 related financial distress in the same language that the rental
         agreement was negotiated. In Berkeley, eviction notices must meet five additional criteria:
              ○ The landlord must specify one or more of the good causes for eviction
              ○ The landlord must allege compliance with the registration and rent ceiling requirements of
                  the Berkeley Rent Ordinance
              ○ The landlord must allege substantial compliance with the implied warranty of habitability
                  (no serious repair problems) for all covered units on the property.
              ○ The landlord must provide a Notice of Tenant Protection Ordinance with any eviction
                  notice.
              ○ The landlord must file with the Rent Stabilization Board a copy of the notice to quit or
                  notice of termination, and of the summons and complaint, within ten days of the date they
                  are given to the tenant(s).
     ● If a tenant returns the declaration of COVID-19-related financial distress, signed under penalty of
         perjury, within 15 business days of receiving a notice to pay rent or quit, this unpaid rent cannot
         be the basis for eviction.
     ● The landlord can sue the tenant to recover unpaid rent in small claims court at the end of the
         repayment period. The repayment period is determined as follows:
              ○ If the local State of Emergency ends before March 31, 2021, the repayment period for
                  Berkeley tenants will end 12 months after the local State of Emergency ends.
              ○ If the local State of Emergency extends beyond March 31, 2021, the repayment period
                  for Berkeley tenants will end March 31, 2022.

If a tenant was unable to pay all or some of the rent between September 1, 2020 and January 31,
2021
     ● A landlord may serve a tenant with a 15-day notice to pay rent or quit (a type of eviction notice).
         The notice must provide a notification that explains the tenant’s rights and obligations and an
         unsigned declaration of COVID-19 related financial distress in the same language that the rental
         agreement was negotiated.
     ● A landlord may serve a 15-day notice to pay rent or quit every month that a tenant cannot pay the
         full rent during this period.
     ● In Berkeley, eviction notices must meet an additional five criteria:
               ○ The landlord must specify one or more of the good causes for eviction
               ○ The landlord must allege compliance with the registration and rent ceiling requirements of
                   the Berkeley Rent Ordinance
               ○ The landlord must allege substantial compliance with the implied warranty of habitability
                   (no serious repair problems) for all covered units on the property.
               ○ The landlord must provide a Notice of Tenant Protection Ordinance with any eviction
                   notice.
               ○ The landlord must file with the Rent Stabilization Board a copy of the notice to quit or
                   notice of termination, and of the summons and complaint, within ten days of the date they
                   are given to the tenant(s).

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●    A tenant should return a signed declaration of COVID-19-related financial distress, signed under
         penalty of perjury, within 15 business days of receiving a notice to pay rent or quit. A tenant
         should return this signed declaration every time they receive a notice to pay rent or quit.
    ●    If a tenant returns the declaration of COVID-19-related financial distress, signed under penalty of
         perjury, within 15 business days of receiving a notice to pay or quit AND pays at least 25% of the
         rent due between September 1, 2020 and January 31, 2021 by January 31, 2021, this unpaid rent
         cannot be the basis for eviction. If a tenant returns the signed declaration but does not pay at
         least 25% of the rent due, the unpaid rent can be used as a basis for eviction. Evictions can be
         pursued starting February 1, 2021, at the earliest, but possibly not until the end of the repayment
         period.
              ○ A tenant can meet this obligation by paying at least 25% of their rent each month, or by
                  paying a lump sum equaling 25% of the rent during the time period, or by some other
                  means by January 31, 2021.
    ●    The landlord can sue the tenant to recover unpaid rent in small claims court at the end of the
         repayment period. The repayment period is determined as follows:
              ○ If the local State of Emergency ends before March 31, 2021, the repayment period for
                  Berkeley tenants will end 12 months after the local State of Emergency ends.
              ○ If the local State of Emergency extends beyond March 31, 2021, the repayment period
                  for Berkeley tenants will end March 31, 2022.

TENANTS SHOULD NOTIFY LANDLORDS IN WRITING AND COLLECT SUPPORTING
DOCUMENTATION IF THEY WILL NOT BE ABLE TO PAY ALL OR PART OF THEIR MONTHLY
RENT DUE TO COVID-19.
Tenants should notify landlords if they will not be able to pay their full rent and maintain documentation of
their COVID-19 related financial impacts.

COVID-19-related financial distress includes:
  ● decrease in household income due to layoffs or reduction of hours
  ● decrease in household income due to caregiving responsibilities, including child care needs
      arising from school closures
  ● substantial out-of-pocket medical expenses
  ● reduction in number of tenants in a group living situation

Even if a tenant has already notified their landlord that they cannot pay their full rent, a tenant must return
a declaration of COVID-19 related financial distress, signed under penalty of perjury, within 15 business
days of receiving a notice to pay or quit.

The new state law specifically allows landlords to require high-income tenants to provide documentation
to show that they have suffered COVID-19-related financial distress. “High-income tenants” are those that
earn more than 130% of the county median household income. A landlord must send out the Notice of
High Income Tenant to a high income tenant if the landlord already has proof on hand that the tenant is
high-income, such as from a rental application. In Alameda County, this would be $154,960 for a family of
four. Regardless of your income, you may need to prove how you were financially impacted by COVID-19
in the future.

Examples of supporting documentation include:
           ○ termination notices
           ○ payroll checks or pay stubs
           ○ bank statements

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○   letters, emails, or texts from an employers or supervisor
              ○   documentation of caregiving responsibilities, including those related to school closures
              ○   medical bills

    ●    If a tenant is unable to provide verifiable documentation at the appropriate time, it may eliminate
         the local eviction moratorium’s protections

The Berkeley Urgency Ordinance states that any medical or financial information provided to the landlord
shall be held in confidence, and shall not be disclosed to other entities unless such disclosure is permitted
or required by the law, or unless the tenant authorizes the disclosure of the information in writing.
Both during and after the local State of Emergency, landlords may not charge or collect a late fee
for rent that is delayed due to the reasons outlined above.

HOUSING RETENTION GRANTS
Berkeley residents at risk of losing their housing due to COVID-19 may be eligible for a housing retention
grant. Funds may be used to supplement rent for temporary or permanent housing, utility bills, or other
housing-related expenses. Applicants will be required to submit documentation of their low-income status,
rental agreement or lease, and other relevant information. Additional information and application guidance
can be found at www.cityofberkeley.info/covid19-housing-retention/. As of June 4, 2020, new applicants
should contact the Eviction Defense Center at (510) 452-4541.

OTHER QUESTIONS RELATED TO COVID-19

I am a landlord, and my tenants recently notified me that they cannot pay their full rent. If I forgive
the rent or offer them reduced rent on a temporary basis, will I be able to charge the full rent at a
later time?
Landlords may temporarily reduce or forgive rents to assist their tenants in coping with COVID-19 impacts
without permanently reducing the amount of rent that can be charged for the unit. However, under Rent
Board Regulation 1017.5, this may only be done for tenancies that began on or before September 1,
2020.

Landlords and tenants must have a written agreement that states that the reduction is temporary, and is
not related to market conditions, habitability, or a reduction in housing services. Rent that is reduced
pursuant to this regulation is deemed permanently waived and may not be demanded as unpaid rent or
debt at any time.

Written agreements entered into during the local State of Emergency may extend beyond the expiration
of the local State of Emergency where the landlord and tenant expressly agree to the duration in writing.
These agreements would not permanently reduce the rent an owner can charge at the end of the
agreement.

I’m in a group living arrangement, and one of my roommates needs to move out as a result of
COVID-19. What is my responsibility to pay the rent now and in the future?
If any of the tenants moves out for a covered reason outlined in the Urgency Ordinance, the remaining
roommates should notify the landlord in writing as soon as possible that they will not be able to cover the
full rent. The remaining tenants must follow the procedures outlined above, including returning a signed
declaration in response to a 15 day notice to pay rent or quit.

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I am a tenant on a fixed-term lease and I need to break my lease due to COVID-19. Can the
landlord penalize me?
The Berkeley City Council amended Berkeley Municipal Code 13.78 on April 28, 2020, to prohibit non-
refundable application fees associated with existing tenancies and lease termination fees.These
amendments, effective May 30, 2020, also prohibit roommate replacement fees. This Ordinance does not
change California Civil Code §1951.2, which continues to apply to lease-breaking situations during the
State of Emergency. Lease-breaking is a matter of contract law, and the Rent Board can only provide
limited guidance. California Civil Code §1951.2 states that tenants may be held responsible for unpaid
rent left on their lease, and that the landlord must make a good-faith effort to mitigate their damages by
seeking to re-rent the unit. If the landlord is unable to fill the vacant unit, the most likely scenario is for the
landlord to retain the tenant security deposit in lieu of unpaid rent. The landlord may also seek to recover
unpaid rent by filing a lawsuit.

I’m a landlord, and I want to show my rental unit to prospective tenants. Can I do this under the
current Shelter-in-Place order?
The current Shelter-in-Place order allows virtual showings of residential units. If a virtual showing is not
feasible, in-person showings can be held by appointment when the occupant is not present. In-person
viewings can only include one person showing the unit and two people from the same household visiting
the unit. Our office is not responsible for the administration or enforcement of the Shelter-in-Place Order.
Specific questions should be directed to 510-981-CITY or covid19@cityofberkeley.info.

Where can I get more information about the city and state response to COVID-19 and rental
housing?
Berkeley Rent Board COVID-19 Tenant and Landlord Resources
Declaration of COVID-19 related financial distress form
Tenant protection guidelines (California Department of Real Estate)
Factsheet on the Tenant, Homeowner, and Small Landlord Relief and Stabilization Act of 2020 (California
Governor’s office)
Full text of AB-3088 eviction moratorium law (California Legislative Information)

What types of services can the Rent Board provide?
During the City’s Shelter-in-Place Order, Rent Board Housing Counselors are responding to inquiries via
telephone at (510) 981-RENT and email at rent@cityofberkeley.info.Get information about our services
during COVID-19 here.

Where can I receive legal assistance?
Tenants may contact the Eviction Defense Center at (510) 452-4541, East Bay Community Law Center at
(510) 548-4040, or Bay Area Legal Aid at (866) 346-3405.

Landlords may contact the Berkeley Property Owners Association at bpoa@bpoa.org or (510) 525-3666
or the Alameda County Bar Association at (510) 302-2222.

Please check the organizations’ websites to confirm operating hours during the local State of Emergency.

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