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News and Events

Tenants Get Creative as They Look to Exit a Lease

via GlobeSt.com If a store can’t survive, a buyout may be the best option. If a landlord thinks a tenant can survive after the COVID economic crisis passes, they’re usually motivated to work on payment plans, according to Luis Martinez-Monfort, founding partner of law firm Gardner Brewer Martinez-Monfort. “The appetite to work through forbearance from both the tenant and landlord is pretty high because I don’t think landlords believe, dependent upon the type of tenant they have, that there’s someone who’s immediately going to backfill a space,” Martinez-Monfort says. Read More..

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Landlords Increase Apartment Concessions To Draw In Tenants

via GlobeSt.com More than 30% of rental listings on Zillow in July featured concessions, compared to 16.2% of listings in February and 12.5% last July. Landlords are increasingly willing to offer concessions or perks to potential tenants rather than lower rent as the pandemic impacts the rental market, a new Zillow study found. The survey of Zillow listings showed that 30.4% of rental listings on the service featured concessions, compared to 16.2% of listings in February and 12.5% last July. Those concessions can range anywhere from a month off rent, free access to a parking space or even a gift card, according to the study. Read more..

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A Closer Look at California’s AB 3088

via GlobeSt.com The act is a temporary solution meant to provide some level of certainty to renters, modest protections for small landlords and time for the state to determine what additional relief may be needed. In the final week of the legislative session in California, the governor and legislative leaders struck a deal on eviction relief for residential renters and foreclosure protections for small landlords financially impacted by the COVID-19 pandemic. California Assembly Bill (AB) 3088, known as the Tenant, Homeowner, and Small Landlord Relief and Stabilization Act of 2020 (the Act), received legislative approval before the midnight deadline on Monday, August 31, and Governor Newsom signed the bill shortly thereafter. The new law, effective immediately, allows the state to delay the anticipated resumption on September 1, 2020 of unlawful detainer actions by California courts. Assembly Member David Chiu, the author of the Act, explained that AB 3088 is a temporary solution meant to provide some level of certainty to renters, modest protections for small landlords and time for the state to determine what additional relief may be needed in the future. Notably absent from the bill are any protections for commercial real estate tenants and landlords.

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Apartment Rent Payments Fall for Third Straight Month

via GlobeSt.com Apartment rent payments continued their downward drift in August. But the industry’s eyes are focused on September, as states try to fill in the gap from expired unemployment benefits provided by the CARES Act. The number of households paying rent through August 27 stood at 92.1%, down from 93.3% in July and 94.2% in June, according to the National Multifamily Housing Council’s Rent Payment Tracker. The rate was down 1.9 percentage points year-over-year from August 2019′s 94%. Read more..

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CDC Declares Eviction Moratorium That Will Last Until Year’s End

via GlobeSt.com The Centers for Disease Control and Prevention is using its quarantine authority to temporarily halt evictions in order to keep COVID-19 from spreading. This order will take effect immediately and last until Dec. 31, 2020. Renters must say they are not able to pay their rent or are likely to become homeless if they are evicted. People earning under $99,000 a year or couples earning less than $198,000 a year are eligible. Read more..

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California governor signs eviction relief bill amid virus

via APnews.com SACRAMENTO, Calif. (AP) — Californians who haven’t paid their rent since March 1 because of the coronavirus can stay in their homes through at least Jan. 31 under a new state law Gov. Gavin Newsom signed late late Monday — one day before statewide eviction protections are set to expire. The pandemic has devastated California’s economy, causing millions of people to lose their jobs as the government ordered businesses to close for months to slow the spread of the disease. In April, the Judicial Council of California — the rule-making authority for the state’s court system — halted most eviction and foreclosure proceedings during the pandemic.

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Everything You Ever Wanted to Know About A.B. 1482: The New Statewide Rent Control and Tenant Protection Law

via aptmags.com The New Statewide Rent Control and Tenant Protection Law Despite the overwhelming voter turnout against 2018’s Proposition 10, Assembly Bill 1482 was passed by the State’s Legislature and became effective as of January 1, 2020. This new law imposes statewide rent “caps” and just-cause eviction rules throughout the State of California. During this webinar, we will cover what this law means for rental housing providers, including the imposed rent “caps,” just-cause eviction rules, exemptions from the law’s rent regulations and tenant protection rules, “at-fault” and “no-fault” tenant evictions, required relocation payments, and required new disclosures. While the law is relatively new and certain issues were not fully addressed and explained by the Legislature, this presentation will provide a well-needed overview of this complicated and often confusing new law, and its restrictions and requirements. Read more..

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Do Rent and Eviction Moratoriums Violate Landlords’ Constitutional Rights Under the Contract Clause?

via aoausa.com You might be surprised to learn that the U.S and California Constitutions both contain clauses that unequivocally prohibit and law - whether state, local or administrative - from "impairing" contract rights between two parties. This clause is called "Contract Clause," and it is supposed to protect contract rights - including in private contracts - like, for example, lease agreements. read more..

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Prop 15 Could Dramatically Change Property Tax Collections for CRE

By Kelsi Maree Borland via GlobeSt.com It has officially arrived—the final language on the split-roll tax ballot measure that has been expected and dreaded among California property owners. Prop 15, as it has been called, would remove the property tax limitation protections promised by Prop 13 for commercial properties, effectively splitting the tax roll. The prop was expected, but an official ballot number and clarity give more information about the measure. “A passing of Proposition 15 would eliminate Proposition 13 protection from apartments, office, industrial and retail properties,” Vicky Hammond, a principal at Coreland Cos., tells GlobeSt.com. “It would ‘split’ commercial and residential tax policies, requiring reassessment of all commercial properties at current market value every three years. Currently, property tax rates are established at 1% of purchase price when sold and restricted to no more than 2% annually thereafter.” In addition, the final ballot measure came with a few new positions. It adds a tax to commercial and industrial properties used for education and includes a local government funding initiative. “Most notably, the burden of proof, which was initially in the hands of the assessor, has been reversed,” says Hammond. “Now the burden will be in the hands of the property owner, making it incredibly difficult to challenge an unfair assessment. To prevent being taxed at a higher value, the owner would have to prove that its property has not increased in value.” Read more..

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