03-24-20 Searchable PacketCITY OF CUPERTINO
CITY COUNCIL
AGENDA
This will be a teleconference meeting without a physical location.
Tuesday, March 24, 2020
6:00 PM
Televised Special Meeting
CITY OF CUPERTINO, CITY COUNCIL MEETING
MARCH 24, 2020
TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION TO HELP STOP THE SPREAD OF
COVID-19
In accordance with Governor Newsom’s Executive Order No-29-20, this will be a
teleconference meeting without a physical location to help stop the spread of COVID-19.
Members of the public wishing to observe the meeting may do so in one of the following
ways:
1) Tune to Comcast Channel 26 and AT&T U-Verse Channel 99 on your TV.
2) The meeting will also be streamed live on and online at
www.Cupertino.org/youtube.com and www.Cupertino.org/webcast.com.
Members of the public wishing comment on an item on the agenda may do so in the
following ways:
1) E-mail comments by 6:00 p.m. on Tuesday, March 24 to the Council at
citycouncil@cupertino.org. These e-mail comments will also be forwarded to
Councilmembers by the City Clerk’s office before the meeting and posted to the City’s
website after the meeting.
2) E-mail comments during the time for public comment during the meeting to the City
Clerk at cityclerk@cupertino.org. The City Clerk will read the emails into the record, and
display any attachments on the screen, for up to 3 minutes (subject to the Mayor’s
discretion to shorten time for public comments).
In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to
attend this teleconference City Council meeting who is visually or hearing impaired or has
any disability that needs special assistance should call the City Clerk's Office at
408-777-3223, at least 6 hours in advance of the Council meeting to arrange for assistance. In
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City Council Agenda March 24, 2020
addition, upon request, in advance, by a person with a disability, City Council meeting
agendas and writings distributed for the meeting that are public records will be made
available in the appropriate alternative format.
NOTICE AND CALL FOR A SPECIAL MEETING OF THE CUPERTINO CITY COUNCIL
NOTICE IS HEREBY GIVEN that a special meeting of the Cupertino City Council is hereby
called for Tuesday, March 24, 2020, commencing at 6:00 p.m. In accordance with Governor
Newsom’s Executive Order No-29-20, this will be a teleconference meeting without a
physical location. Said special meeting shall be for the purpose of conducting business on
the subject matters listed below under the heading, “Special Meeting."
SPECIAL MEETING
ROLL CALL
ORDINANCES AND ACTION ITEMS
1.Subject: Urgency Ordinance Imposing a Moratorium on Evictions for Nonpayment of
Rent by Tenants Impacted by the COVID-19 Pandemic
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City Council Agenda March 24, 2020
Recommended Action: 1. Conduct the only reading and adopt Ordinance No. 20-2201:
"An Urgency Ordinance of the City Council of the City of Cupertino Enacting an
Immediate Temporary Moratorium on Evictions Due to Nonpayment of Rent for
Residential Tenants Where the Failure to Pay Results from Income Loss Resulting from
the Novel Coronavirus (COVID-19), and Setting Forth the Facts Constituting Such
Urgency."
Specifically, the ordinance would:
A. Invoke the urgency provisions in Government Code section 36937, as an urgency
measure for immediate preservation of the public peace, health or safety, to
temporarily prohibit the eviction of a tenant for nonpayment of rent, if that tenant
meets the criteria listed in the ordinance regarding COVID-19; and
B. Provide that the moratorium will be in effect as provided in the Council’s adoption
of a resolution declaring the commencement and making findings regarding COVID-19
and that such moratorium will expire in forty-five days unless extended.
2. Adopt Resolution No. 20-030, A Resolution of the Council of the City of Cupertino
Declaring the Commencement of a Forty-Five Day Moratorium on Evictions Due to
Nonpayment of Rent for Residential Tenants Where the Failure to Pay Rent Results
from Income Loss Resulting from the Novel Coronavirus (COVID-19), and Setting
Forth the Facts Constituting Such Urgency.
3. Conduct the first reading of Ordinance No. 20-2202: "An Ordinance of the City
Council of the City of Cupertino Enacting a Temporary Moratorium on Evictions Due
to Nonpayment of Rent for Residential Tenants Where the Failure to Pay Rent Results
from Income Loss Resulting from the Novel Corona Virus (COVID-19)."
Specifically, the ordinance would:
A. Temporarily prohibit the eviction of a residential tenant for non-payment of rent, if
that tenant meets the criteria listed in the ordinance regarding COVID-19; and
B. Provide that the moratorium will be in effect as provided in the Council’s adoption
of a resolution declaring the commencement and making findings regarding COVID-19
and that such moratorium will expire in forty-five days unless extended.
Staff Report
A - Draft Urgency Ordinance
B - Draft Resolution
C - Draft Ordinance
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City Council Agenda March 24, 2020
2.Subject: Emergency Assistance Funds for Tenants at Risk of Eviction due to Impacts of
by the Novel Coronavirus (“Emergency Assistance Funds”)
Recommended Action: Adopt Resolution No. 20-031 to:
1. Authorize $350,000 in funds directed towards the Emergency Assistance Fund for
tenants at risk of eviction due to impacts of the coronavirus disease (COVID-19)
2. Authorize the City Manager to negotiate and execute an agreement with West
Valley Community Services to implement the Emergency Assistance Funds program.
Staff Report
A - Draft Resolution
3.Subject: Consideration of an Emergency Ordinance to provide tenant protection to
commercial tenants.
Recommended Action: In consideration of the following policy considerations, it is
staff’s recommendation that Council not impose a moratorium on commercial evictions
at this time due to the unique nature of commercial leasing and the State and Federal
resources currently available to business owners. Furthermore, the City does not
currently have the staffing resources nor allocated budget to develop meaningful loan
or grant programs for small businesses. It is recommended staff continue to facilitate
business owners’ participation in Federal, State, and regional economic relief programs.
Staff Report
A - CA 16332 Amend-1-Fact Sheet (COVID Gov Cert EIDL)
B - SBA Disaster Loan Assistance
C - EDD Work Sharing
D - EDD Rapid Response
ADJOURNMENT
The City of Cupertino has adopted the provisions of Code of Civil Procedure §1094.6; litigation
challenging a final decision of the City Council must be brought within 90 days after a decision is
announced unless a shorter time is required by State or Federal law.
Prior to seeking judicial review of any adjudicatory (quasi-judicial) decision, interested persons must
file a petition for reconsideration within ten calendar days of the date the City Clerk mails notice of the
City’s decision. Reconsideration petitions must comply with the requirements of Cupertino Municipal
Code §2.08.096. Contact the City Clerk’s office for more information or go to
http://www.cupertino.org/cityclerk for a reconsideration petition form.
In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this
teleconference City Council meeting who is visually or hearing impaired or has any disability that needs
special assistance should call the City Clerk's Office at 408-777-3223, at least 6 hours in advance of the
Council meeting to arrange for assistance. In addition, upon request, in advance, by a person with a
disability, City Council meeting agendas and writings distributed for the meeting that are public
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City Council Agenda March 24, 2020
records will be made available in the appropriate alternative format.
Any writings or documents provided to a majority of the Cupertino City Council after publication of
the packet will be made available for public inspection in the City Clerk’s Office located at City Hall,
10300 Torre Avenue, during normal business hours and in Council packet archives linked from the
agenda/minutes page on the Cupertino web site.
IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code 2.08.100
written communications sent to the Cupertino City Council, Commissioners or City staff concerning a
matter on the agenda are included as supplemental material to the agendized item. These written
communications are accessible to the public through the City’s website and kept in packet archives. You
are hereby admonished not to include any personal or private information in written communications to
the City that you do not wish to make public; doing so shall constitute a waiver of any privacy rights
you may have on the information provided to the City.
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CITY OF CUPERTINO
Legislation Text
Subject:Urgency Ordinance Imposing a Moratorium on Evictions for Nonpayment of Rent by Tenants
Impacted by the COVID-19 Pandemic
1. Conduct the only reading and adopt Ordinance No. 20-2201: "An Urgency Ordinance of the City
Council of the City of Cupertino Enacting an Immediate Temporary Moratorium on Evictions Due to
Nonpayment of Rent for Residential Tenants Where the Failure to Pay Results from Income Loss
Resulting from the Novel Coronavirus (COVID-19), and Setting Forth the Facts Constituting Such
Urgency."
Specifically, the ordinance would:
A. Invoke the urgency provisions in Government Code section 36937, as an urgency measure for
immediate preservation of the public peace, health or safety, to temporarily prohibit the eviction of a
tenant for nonpayment of rent, if that tenant meets the criteria listed in the ordinance regarding
COVID-19; and
B. Provide that the moratorium will be in effect as provided in the Council’s adoption of a resolution
declaring the commencement and making findings regarding COVID-19 and that such moratorium
will expire in forty-five days unless extended.
2. Adopt Resolution No. 20-030, A Resolution of the Council of the City of Cupertino Declaring the
Commencement of a Forty-Five Day Moratorium on Evictions Due to Nonpayment of Rent for
Residential Tenants Where the Failure to Pay Rent Results from Income Loss Resulting from the Novel
Coronavirus (COVID-19), and Setting Forth the Facts Constituting Such Urgency.
3. Conduct the first reading of Ordinance No. 20-2202: "An Ordinance of the City Council of the City of
Cupertino Enacting a Temporary Moratorium on Evictions Due to Nonpayment of Rent for Residential
Tenants Where the Failure to Pay Rent Results from Income Loss Resulting from the Novel Corona
Virus (COVID-19)."
Specifically, the ordinance would:
A. Temporarily prohibit the eviction of a residential tenant for non-payment of rent, if that tenant
meets the criteria listed in the ordinance regarding COVID-19; and
B. Provide that the moratorium will be in effect as provided in the Council’s adoption of a resolution
declaring the commencement and making findings regarding COVID-19 and that such moratorium
will expire in forty-five days unless extended.
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CITY COUNCIL STAFF REPORT
Meeting: March 24, 2020
Subject
Urgency Ordinance Imposing a Moratorium on Evictions for Nonpayment of Rent by
Tenants Impacted by the COVID-19 Pandemic
Recommended Action
1. Adopt Ordinance No. ________________, An Urgency Ordinance of the City of
Cupertino Enacting an Immediate Temporary Moratorium on Evictions Due to
Nonpayment of Rent for Residential Tenants Where the Failure to Pay Results
from Income Loss Resulting from the Novel Coronavirus (COVID-19), and
Setting Forth the Facts Constituting Such Urgency.
Specifically, the ordinance would:
A. Invoke the urgency provisions in Government Code section 36937, as an
urgency measure for immediate preservation of the public peace, health or
safety, to temporarily prohibit the eviction of a tenant for nonpayment of rent, if
that tenant meets the criteria listed in the ordinance regarding COVID-19; and
B. Provide that the moratorium will be in effect as provided in the Council’s
adoption of a resolution declaring the commencement and making findings
regarding COVID-19 and that such moratorium will expire in forty-five days
unless extended.
2. Adopt Resolution No. _______________, A Resolution of the Council of the City
of Cupertino Declaring the Commencement of a Forty-Five Day Moratorium on
Evictions Due to Nonpayment of Rent for Residential Tenants Where the Failure
to Pay Rent Results from Income Loss Resulting from the Novel Coronavirus
(COVID-19), and Setting Forth the Facts Constituting Such Urgency.
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3. Conduct the first reading of Ordinance No. _____ , An Ordinance of the City of
Cupertino Enacting a Temporary Moratorium on Evictions Due to Nonpayment
of Rent for Residential Tenants Where the Failure to Pay Rent Results from
Income Loss Resulting from the Novel Corona Virus (COVID-19).
Specifically, the ordinance would:
A. Temporarily prohibit the eviction of a residential tenant for non-payment of
rent, if that tenant meets the criteria listed in the ordinance regarding COVID-19;
and
B. Provide that the moratorium will be in effect as provided in the Council’s
adoption of a resolution declaring the commencement and making findings
regarding COVID-19 and that such moratorium will expire in forty-five days
unless extended.
Discussion
On March 10, 2020, the City Council directed the City Attorney to prepare an ordinance,
and a companion urgency ordinance establishing a temporary moratorium on (1)
evictions in the City of Cupertino for renters on the basis of nonpayment of rent where
that failure to pay rent results from wage loss resulting from the novel coronavirus
(COVID-19) pandemic, and (2) no-fault evictions, unless necessary for the health and
safety of tenants, neighbors, or the landlord. The urgency ordinance and companion
ordinance contain the provisions of the eviction moratorium, including the purpose,
scope and type of protection offered to affected tenants. The resolution contains
provisions activating the ordinances.
The purpose of this legislation is to provide housing stability in the Cupertino
community during the COVID-19 pandemic, preventing avoidable homelessness, and
maintaining the public health. The temporary moratorium on evictions will protect the
health, safety, and welfare of Cupertino residents.
1. Urgency Moratorium Ordinance The Urgency Ordinance provides the
underlying authority for the City Council to act on the eviction moratorium
resolution. The City Attorney has prepared the urgency ordinance for immediate
consideration by the City Council, setting forth the facts that constitute the
urgent action by the City Council. The ordinance becomes effective immediately
upon its adoption pursuant Government Code section 36937. It requires a 4/5
majority for passage and will be in effect for 60 days. The 60-day timeframe is
needed so that there is sufficient time for the regular Moratorium Ordinance to
take effect. To enact the Urgency Moratorium Ordinance, the City Council must
pass the Eviction Moratorium Resolution.
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2. Eviction Moratorium Resolution To enact the Moratorium, the City Attorney
has also prepared a resolution which essentially activates the temporary
moratorium on evictions. The eviction moratorium will be effective on the date
the proposed resolution is approved by the City Council and will continue for a
period of forty-five days. This period may be extended by the City Council. To
extend the term, the City Council will need to pass a new resolution.
3. Moratorium Ordinance The City Attorney has prepared a companion Ordinance
that mirrors the urgency ordinance in its substantive effect. It requires both a first
and second reading as typical for non-emergency ordinances. If the proposed
ordinance is passed, it will become effective 30 days after the second reading. It
requires a simple majority for passage and it will be repealed automatically after
six months of its effective date. The ordinance allows the City Council to extend
the moratorium past the original 45 days provided under the Urgency
Ordinance. The City Council will need to pass a resolution to extend the
moratorium.
Residents Covered by the Legislation
The legislation will apply to all tenants renting in Cupertino. Tenants who owe back rent
today that is unrelated to COVID-19 can still be evicted under the Ordinance.
Eviction Protections
The ordinance will allow tenants to defend themselves against evictions for nonpayment
of rent if they can demonstrate their income has been reduced due to the COVID-19
pandemic.
• Landlord Responsibility – Under the proposed legislation, a landlord is required to
provide tenants with written notice of the identity and mailing address of the landlord
(as is already required under state law), notice of the moratorium and the amount of
rent due. If a tenant has failed to pay rent after it is due, the landlord may serve a notice
to pay rent or quit setting forth the amount of rent and required to be paid within a
period specified in the notice of not less than three days.
• Tenant Responsibility – Affected tenants must prove that they have suffered a
substantial loss of income due to COVID-19 in order to receive eviction protections
under the moratorium:
1) Income Impacted by COVID-19 – a tenant must present documentation that
supports job loss, reduction of hours, missing work due to a minor child’s school
closure or a state/local requirement or recommendation to stay indoors for those
over 65 years old, or other sensitive groups.
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2) Evidence of Loss of Income – In order to show loss of income, a tenant must
provide documentation or other objectively verifiable proof. Examples of that are
providing copies of bank statements that illustrate a drop in income, employer
pay stubs showing the same, a letter from an employer notifying tenant of
reduction of compensable hours, or other documentation that proves that tenant
has not been generating the same level of income due to COVID-19.
• Timing of Notification and Documentation –The tenant has an obligation to provide
their landlord with notice that they are a protected tenant as a result of COVID-19 before
the expiration of the Notice of Termination. The tenant may argue as an affirmative
defense in an unlawful detainer action that they are a protected tenant by, at any point
in time, providing documentation to the Landlord that they have lost substantial
income. Examples of documentation may include, but are not limited to, a letter from
their employer citing COVID-19 as a reason for reduced work hours or termination,
employer paycheck stubs, or bank statements.
• Recovery of Back Rent -- While the ordinance will protect tenants from eviction, rent
will continue to be due under the rental contract. The Ordinance establishes a 180-day
(approx. 6 month) period for affected tenants to become current on past due rent after
the expiration of the moratorium. Until 180 days after the eviction moratorium ends, a
landlord will not be allowed to exercise their right to demand the past due rent by
serving a notice to pay rent or quit.
During the moratorium, landlords and tenants are encouraged to discuss with each
other the impacts of COVID-19 on their income and to negotiate a reasonable plan to
pay the rent.
Enforcement
The City would not directly enforce the ordinance. A tenant could raise the ordinance as
a defense to an unlawful detainer action filed in court by the landlord, or a tenant file a
private civil lawsuit against the landlord to enforce the provisions of the ordinance.
In the event Council approves the ordinance, staff will immediately prepare outreach
materials to publicize the tenant protection measures in the ordinance.
Sustainability Impact
No sustainability impact. The ordinance provides tenant protection measures during a
period when tenants are at a heightened risk of eviction or significant rent increases.
Fiscal Impact
No new fiscal impacts are anticipated at this time from the issues discussed in this
report. There may be a slight increase in requests for information or referrals to help
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resolve tenant and landlord issues; it is anticipated that these requests would be handled
through the existing operating budget.
_____________________________________
Prepared by: Joseph Petta, Deputy City Attorney
Reviewed by: Heather M. Minner, City Attorney
Approved for Submission by: Dianne Thompson, Assistant City Manager
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ORDINANCE NO. _____________
AN URGENCY ORDINANCE OF THE CITY OF CUPERTINO ENACTING AN
IMMEDIATE TEMPORARY MORATORIUM ON EVICTIONS DUE TO NONPAYMENT
OF RENT FOR RESIDENTIAL TENANTS WHERE THE FAILURE TO PAY RENT
RESULTS FROM INCOME LOSS RESULTING FROM THE NOVEL CORONAVIRUS
(COVID-19), AND SETTING FORTH THE FACTS CONSTITUTING SUCH URGENCY
WHEREAS, on February 3, 2020 and pursuant to Section 101080 of the California
Health and Safety Code, the Santa Clara County Health Officer (the “Health Officer”) declared
a local health emergency throughout Santa Clara County (the “County”) related to the novel
coronavirus (“COVID-19”); and
WHEREAS, on February 3, 2020, and pursuant to Section 8630 of the California
Government Code, the Santa Clara County Director of Emergency Services proclaimed a local
emergency throughout the County related to COVID-19; and
WHEREAS, on March 4, 2020, California Governor Gavin Newsom declared a State
of Emergency to make additional resources available, formalize emergency actions already
underway across multiple state agencies and departments, and help the state prepare for a
broader spread of COVID-19; and
WHEREAS, on March 4, 2020, the County issued updated guidance for workplaces
and businesses, stating that employers should take steps to make it more feasible for their
employees to work in ways that minimize close contact with large numbers of people,
including: 1) suspend nonessential employee travel; and 2) minimize the number of employees
working within arm’s length of one another, including minimizing or canceling large in-person
meetings and conferences. The County also recommended that persons at higher risk of severe
illness should stay home and away from crowded social gatherings of people as much as
possible such as parades, conferences, sporting events, and concerts where large numbers of
people are within arm’s length of one another; and
WHEREAS, as of March 9, 2020, the County reported that there were 43 cases of
persons testing positive for COVID-19 in the County, an increase of 23 in five days. In
response, the County, pursuant to its authority under California Health and Safety Codes
sections 101040, 101085, and 120175, ordered that private mass gatherings attended by one
thousand persons are prohibited until March 31, 2020 (the “Order”). This Order was based
upon evidence of increasing transmission of COVID-19 within the County, scientific evidence
regarding the most effective approaches to slow the transmission of communicable diseases
generally and COVID-19 specifically, as well as best practices as currently known and
available to protect vulnerable members of the public from avoidable risk of serious illness or
death resulting from exposure to COVID-19; and
WHEREAS, on March 11, 2020, the City Manager for the City of Cupertino (“City”)
declared a local emergency throughout the City related to COVID-19; and
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WHEREAS, on March 17, 2020, the Council ratified and continued the City Manager’s
declaration of a local emergency; and
WHEREAS, on March 13, 2020, the County issued a new Order mandating a
countywide moratorium on gatherings of more than 100 persons and a conditional countywide
moratorium on gatherings of between 35-100 persons. California Governor Gavin Newsom
also called for bar, wineries, and brewery pubs to close. These restrictions impact how
businesses operate that rely on customer patronage and will result in loss revenue for those that
cannot continue to operate their businesses during this time or must operate under severe
restrictions; and
WHEREAS, on March 16, 2020, Governor Newsom issued Executive Order N-28-20,
which grants cities, counties and cities and counties broad authority to enact temporary
moratoria on residential and commercial evictions based on a non-payment of rent caused by
the COVID-19 pandemic or the federal, state and/or local response to the COVID-19
pandemic; and
WHEREAS, also on March 16, 2020 the County, along with five other Bay Area
counties, issued a sweeping a Shelter in Place Order; and
WHEREAS, the County Superintendent of Schools and all district superintendents in
the County decided to close schools to students for three weeks beginning Monday, March 16,
2020. These school closures will cause children to have to remain at home, leading to many
parents adjusting their work schedules to take time off work, whether paid or unpaid. Hourly
wage earners are unlikely to be paid for time off. The inability to work due to school closures
will economically strain those families who cannot afford to take off time from work to stay at
home; and
WHEREAS, on March 19, 2020, Governor Newsom ordered all individuals living in
the State of California to stay home or at their place of residence, with limited exceptions, to
stop the spread of COVID-19; and
WHEREAS, as a result of the State of Emergency and the subsequent prohibitions on
large gatherings, and shelter in place orders, many City residential tenants have experienced
sudden and substantial income loss due to business and school closures, layoffs or reductions
in work hours and extraordinary out-of-pocket medical expenses, making it challenging for
them to pay rent on time and thus, more likely to face the prospect of eviction; and
WHEREAS, this Ordinance is a temporary moratorium intended to promote stability
and fairness within the residential rental market in the City during the COVID-19 pandemic
outbreak, and to prevent avoidable homelessness thereby serving the public peace, health,
safety, and public welfare and to enable tenants in the City whose income and ability to work
is affected due to COVID-19 to remain in their homes; and
WHEREAS, displacement through eviction destabilizes the living situation of tenants
and impacts the health of Cupertino’s residents by uprooting children from schools, disrupting
the social ties and networks that are integral to citizens' welfare and the stability of
communities within the City; and
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WHEREAS, displacement through eviction creates undue hardship for tenants through
additional relocation costs, stress and anxiety, and the threat of homelessness due to the lack of
alternative housing; and
WHEREAS, during the COVID-19 pandemic outbreak, affected tenants who have lost
income due to impact on the economy or their employment are at risk of homelessness if they
are evicted for non-payment as they will have little or no income and thus be unable to secure
other housing if evicted; and
WHEREAS, housing instability threatens the public peace, health and safety as eviction
from one’s home can lead to homelessness; loss of community; stress and anxiety caused by
the experience of displacement; interruption of the education of any children in the home;
increased incidence of families moving into overcrowded conditions creating greater risk for
the spread of COVID-19; and
WHEREAS, the City, pursuant to its police powers, has broad authority to maintain
public peace, health, and safety of its community and preserve quality of life for residents
throughout the City; and
WHEREAS, given the severe consequences to public health and safety throughout the
City that would result from evictions of residential tenants during the City-wide local health
emergency, the City finds and determines that a temporary moratorium on evictions based on
non-payment of rent due to COVID-19 or the government response to COVID-19 and no-fault
terminations of tenancy (unless required for the health and safety of the tenant or the landlord)
is necessary to curb the spread of COVID-19 across all areas of the City and contain the virus
to the greatest extent possible and thereby serve the public peace, health and safety.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
CUPERTINO:
SECTION 1. The uncodified Ordinance set out in the attached Exhibit A is hereby approved.
SECTION 2. Government Code section 36937(a) authorizes the adoption of an urgency
ordinance to protect the public peace, health or safety, where there is a declaration of the facts
constituting the urgency and the ordinance is adopted by four-fifths of the Council.
SECTION 3. The City Council hereby finds, determines and declares that this urgency
ordinance adopted pursuant to California Government Code section 36937 is necessary because
there is a current and immediate threat to the public health, safety and/or welfare and a need for
immediate preservation of the public peace, health, or safety that warrants this urgency measure,
which finding is based upon the facts stated in the recitals above, all of which are deemed true
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and correct, as well any oral and written testimony at the March 17, 2020 and March 24, 2020
City Council meetings.
SECTION 4. This Ordinance and any moratorium that may be established thereunder is declared
by the City Council to be an urgency measure necessary for the immediate preservation of the
public peace, health or safety. The facts constituting such urgency are all of those certain facts set
forth and referenced in Section 3 of this Ordinance.
SECTION 5. The City Council of the City of Cupertino held a duly noticed public meeting on
March 24, 2020, and after considering all testimony and written materials provided in connection
with that meeting introduced this ordinance and waived the reading thereof.
SECTION 6. This urgency ordinance shall take effect immediately upon adoption in accordance
with the provisions set forth in Government Code section 36937 and shall remain in effect for sixty
(60) days, unless extended by the City Council.
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EXHIBIT A
IMMEDIATE TEMPORARY MORATORIUM ON EVICTIONS DUE TO
NONPAYMENT OF RENT FOR RESIDENTIAL TENANTS WHERE THE FAILURE TO
PAY RENT RESULTS FROM WAGE LOSS DUE TO THE NOVEL CORONAVIRUS
(COVID-19)
SECTION 1: Title
This Ordinance shall be known as the “COVID-19 Eviction Moratorium Ordinance.”
SECTION 2: Policy and Purposes Declaration
The purposes of this Ordinance are to promote housing stability during the COVID-19 pandemic
and to prevent avoidable homelessness. This Ordinance is immediately necessary for the
immediate preservation of the public peace, health or safety because the COVID-19 pandemic has
the potential for destabilizing the residential rental market for all of the reasons described herein.
It is intended to enable tenants in the City whose employment and income have been affected by
the COVID-19 pandemic to be temporarily exempt from eviction for non-payment of rent and to
reduce the risk that these events will lead to anxiety, stress and potential homelessness for the
affected City residents and their communities thereby serving the public peace, health, safety, and
public welfare. The temporary moratorium on evictions for non-payment imposed by this
Ordinance is created pursuant to the City's general police powers to protect the health, safety, and
welfare of its residents and exists in addition to any rights and obligations under state and federal
law.
SECTION 3: Term, Expiration
A. This Ordinance is effective immediately and shall expire within sixty (60) days after its
adoption.
B. The moratorium will commence upon adoption by City Council of a Resolution setting
forth the facts and circumstances for activation and shall expire forty-five (45) days after
adoption, unless the Resolution is otherwise extended by approval of the City Council.
SECTION 4: Moratorium on Nonpayment and No Cause Terminations
A. During the term of this Ordinance, while a moratorium is activated by Resolution of the
City Council, no landlord shall endeavor to evict a tenant in either of the following
situations:
(1) for nonpayment of rent if the tenant demonstrates that the tenant is unable to pay full
rent due to financial impacts related to COVID-19, including, but not limited to, tenant lost
household income as a result of any of the following: (1) being sick with COVID-19, or
caring for a household or family member who is sick with COVID-19; (2) lay-off, loss of
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hours, or other income reduction resulting from business closure or other economic or
employer impacts of COVID-19; (3) compliance with a recommendation from a
government health authority to stay home, self-quarantine, or avoid congregating with
others during the state of emergency; (4) extraordinary out-of-pocket medical expenses; or
(5) child care needs arising from school closures related to COVID-19; or
(2) for a no-fault eviction unless necessary for the health and safety of tenants, neighbors,
or the landlord. A “no-fault eviction” refers to any eviction for which the notice to terminate
tenancy is not based on alleged fault by the tenant, includin g but not limited to eviction
notices served pursuant to Code of Civil Procedure sections 1161(1), 1161(5), or 1161c.
B. A landlord who knows that a tenant cannot pay some or all of the rent temporarily for the
reasons set forth above shall not file or prosecute an unlawful detainer action based on a 3-
day pay or quit notice, or otherwise seek to evict for nonpayment of rent.
C. Any 3-day pay or quit notice issued to a tenant shall be accompanied with written notice
of the identity and mailing address of the Landlord, notice of the Moratorium and this
Ordinance on a form approved by the City, and the amount of rent due.
D. A landlord knows of a tenant’s inability to pay rent within the meaning of Section 4.B if
the tenant, before expiration of the 3-day pay or quit notice, notifies the landlord in writing
of lost income and inability to pay full rent due to financial impacts related to COVID-19.
For purposes of this Ordinance, “in writing” includes email or text communications to a
landlord or the landlord’s representative with whom the tenant has previously corresponded
by email or text.
E. The following documents, provided to the landlord at any point in time, shall create a
rebuttable presumption that the tenant has met the documentation requirement set forth in
Section 4.D, however, they are not the exclusive form of documentation demonstrating
impacts to income due to COVID-19:
(1) letter from employer citing COVID-19 as a reason for reduced work hours or
termination;
(2) employer paycheck stubs;
(3) bank statements.
Any medical or financial information provided to the landlord shall be held in
confidence, and only used for evaluating the tenant’s claim.
F. Nothing in this Ordinance shall relieve the tenant of liability for the unpaid rent, which the
landlord may seek after expiration of the Moratorium and the tenant must pay within 180
days of the expiration of the Moratorium. During that 180-day period, the protections
against eviction found in Section 4 of this Ordinance apply as to any rent the tenant was
unable to pay as a result of the causes set forth in Section 4.A.1.
G. A landlord may not charge or collect a late fee or other penalty for rent that is delayed for
the reasons stated in this Ordinance; nor may a landlord seek rent that is delayed for the
reasons stated in this Ordinance through the eviction process.
H. This Ordinance applies to pending nonpayment eviction notices and no-fault eviction
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notices issued on or after March 11, 2020.
SECTION 5: Enforcement
A. Non-compliance with any applicable component of this Ordinance shall constitute an
affirmative defense for a tenant against any unlawful detainer action under California Code
of Civil Procedure section 1161, as amended.
B. Any landlord that fail(s) to comply with this Ordinance may be subject to civil proceedings
for displacement of tenant(s) initiated by the City or tenant household for actual and
exemplary damages.
C. Whoever is found to have violated this Ordinance shall be subject to appropriate injunctive
relief and shall be liable for damages, costs and reasonable attorneys' fees.
D. Treble damages shall be awarded for a landlord's willful failure to comply with the
obligations established under this Ordinance.
SECTION 6: Severability
The City Council declares that each section, sub-section, paragraph, sub-paragraph, sentence,
clause and phrase of this ordinance is severable and independent of every other section, sub-
section, paragraph, sub-paragraph, sentence, clause and phrase of this ordinance. If any section,
sub-section, paragraph, sub-paragraph, sentence, clause or phrase of this ordinance is held invalid,
or its application to any person or circumstance, be determined by a court of competent jurisdiction
to be unlawful, unenforceable or otherwise void, the City Council declares that it would have
adopted the remaining provisions of this ordinance irrespective of such portion, and further
declares its express intent that the remaining portions of this ordinance should remain in effect
after the invalid portion has been eliminated.
SECTION 7: Compliance with CEQA
The City Council finds that the adoption and implementation of this Ordinance is not a project
under the requirements of the California Environmental Quality Act, together with related State
CEQA Guidelines (collectively, “CEQA”) because it has no potential for resulting in physical
change in the environment. In the event that this Ordinance is found to be a project under
CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section
15061(b)(3) because it can be seen with certainty to have no possibility that the action approved
may have a significant effect on the environment. CEQA applies only to actions which have the
potential for causing a significant effect on the environment. Where it can be seen with certainty
that there is no possibility that the activity in question may have a significant effect on the
environment, the activity is not subject to CEQA. In this circumstance, the proposed action to
enact tenant protections would have no or only a de minimis effect on the environment because
it helps preserve the status quo and reduce displacement. The foregoing determination is made
by the City Council in its independent judgment.
SECTION 8: Publication
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The City Clerk is directed to cause this ordinance to be published in the manner required by
law.
Introduced and adopted as an urgency ordinance of the City of Cupertino at a special meeting of
the City Council held on March 24, 2020, by the following vote:
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
SIGNED:
__________________
Steven Scharf,
Mayor City of Cupertino
________________________
Date
ATTEST:
________________________
Kirsten Squarcia, City Clerk
________________________
Date
APPROVED AS TO FORM:
__________________________
Heather Minner, City Attorney
________________________
Date
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RESOLUTION NO.
A RESOLUTION OF THE COUNCIL OF THE CITY OF CUPERTINO DECLARING
THE COMMENCEMENT OF A FORTY-FIVE DAY MORATORIUM ON EVICTIONS DUE
TO NONPAYMENT OF RENT FOR RESIDENTIAL TENANTS WHERE THE FAILURE TO
PAY RENT RESULTS FROM INCOME LOSS RESULTING FROM THE NOVEL
CORONAVIRUS (COVID-19), AND SETTING FORTH THE FACTS CONSTITUTING SUCH
URGENCY
WHEREAS, on February 3, 2020 and pursuant to Section 101080 of the California
Health and Safety Code, the Santa Clara County Health Officer (the “Health Officer”) declared
a local health emergency throughout Santa Clara County (the “County”) related to the novel
coronavirus (“COVID-19”); and
WHEREAS, on February 3, 2020, and pursuant to Section 8630 of the California
Government Code, the Santa Clara County Director of Emergency Services proclaimed a local
emergency throughout the County related to COVID-19; and
WHEREAS, on March 4, 2020, California Governor Gavin Newsom declared a State of
Emergency to make additional resources available, formalize emergency actions already
underway across multiple state agencies and departments, and help the state prepare for a
broader spread of COVID-19; and
WHEREAS, on March 4, 2020, the County issued updated guidance for workplaces and
businesses, stating that employers should take steps to make it more feasible for their employees
to work in ways that minimize close contact with large numbers of people, including: 1) suspend
nonessential employee travel; and 2) minimize the number of employees working within arm’s
length of one another, including minimizing or canceling large in-person meetings and
conferences. The County also recommended that persons at higher risk of severe illness should
stay home and away from crowded social gatherings of people as much as possible such as
parades, conferences, sporting events, and concerts where large numbers of people are within
arm’s length of one another; and
WHEREAS, as of March 9, 2020, the County reported that there were 43 cases of
persons testing positive for COVID-19 in the County, an increase of 23 in five days. In
response, the County, pursuant to its authority under California Health and Safety Codes
sections 101040, 101085, and 120175, ordered that private mass gatherings attended by one
thousand persons are prohibited until March 31, 2020 (the “Order”). This Order was based upon
evidence of increasing transmission of COVID-19 within the County, scientific evidence
regarding the most effective approaches to slow the transmission of communicable diseases
generally and COVID-19 specifically, as well as best practices as currently known and available
to protect vulnerable members of the public from avoidable risk of serious illness or death
resulting from exposure to COVID-19; and
WHEREAS, on March 11, 2020, the City Manager for the City of Cupertino (“City”)
declared a local emergency throughout the City related to COVID-19; and
WHEREAS, on March 17, 2020, the Council ratified and continued the City Manager’s
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declaration of a local emergency; and
WHEREAS, on March 13, 2020, the County issued a new Order mandating a
countywide moratorium on gatherings of more than 100 persons and a conditional countywide
moratorium on gatherings of between 35-100 persons. California Governor Gavin Newsom also
called for bar, wineries, and brewery pubs to close. These restrictions impact how businesses
operate that rely on customer patronage and will result in loss revenue for those that cannot
continue to operate their businesses during this time or must operate under severe restrictions;
and
WHEREAS, on March 16, 2020, Governor Newsom issued Executive Order N-28-20,
which grants cities, counties and cities and counties broad authority to enact temporary
moratoria on residential and commercial evictions based on a non-payment of rent caused by the
COVID-19 pandemic or the federal, state and/or local response to the COVID-19 pandemic; and
WHEREAS, also on March 16, 2020 the County, along with five other Bay Area
counties, issued a sweeping a Shelter in Place Order; and
WHEREAS, the County Superintendent of Schools and all district superintendents in the
County decided to close schools to students for three weeks beginning Monday, March 16,
2020. These school closures will cause children to have to remain at home, leading to many
parents adjusting their work schedules to take time off work, whether paid or unpaid. Hourly
wage earners are unlikely to be paid for time off. The inability to work due to school closures
will economically strain those families who cannot afford to take off time from work to stay at
home; and
WHEREAS, on March 19, 2020, Governor Newsom ordered all individuals living in the
State of California to stay home or at their place of residence, with limited exceptions, to stop
the spread of COVID-19; and
WHEREAS, as a result of the State of Emergency and the subsequent prohibitions on
large gatherings, and shelter in place orders, many City residential tenants have experienced
sudden and substantial income loss due to business and school closures, layoffs or reductions in
work hours and extraordinary out-of-pocket medical expenses, making it challenging for them to
pay rent on time and thus, more likely to face the prospect of eviction; and
WHEREAS, displacement through eviction destabilizes the living situation of tenants
and impacts the health of Cupertino’s residents by uprooting children from schools, disrupting
the social ties and networks that are integral to citizens' welfare and the stability of communities
within the City; and
WHEREAS, displacement through eviction creates undue hardship for tenants through
additional relocation costs, stress and anxiety, and the threat of homelessness due to the lack of
alternative housing; and
WHEREAS, during the COVID-19 pandemic outbreak, affected tenants who have lost
income due to impact on the economy or their employment are at risk of homelessness if they
are evicted for non-payment as they will have little or no income and thus be unable to secure
other housing if evicted; and
WHEREAS, housing instability threatens the public peace, health and safety as eviction
from one’s home can lead to homelessness; loss of community; stress and anxiety caused by the
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experience of displacement; interruption of the education of any children in the home; increased
incidence of families moving into overcrowded conditions creating greater risk for the spread of
COVID-19; and
WHEREAS, the City, pursuant to its police powers, has broad authority to maintain
public peace, health, and safety of its community and preserve quality o f life for residents
throughout the City; and
WHEREAS, given the severe consequences to public health and safety throughout the
City that would result from evictions of residential tenants during the City-wide local health
emergency, the City finds and determines that a temporary moratorium on evictions based on
non-payment of rent due to COVID-19 or the government response to COVID-19 and no-fault
terminations of tenancy (unless required for the health and safety of the tenant or the landlord) is
necessary to curb the spread of COVID-19 across all areas of the City and contain the virus to
the greatest extent possible and thereby serve the public peace, health and safety; and
WHEREAS, on March 24, 2020, the City Council adopted a COVID-19 Urgency
Ordinance (“Urgency Ordinance”) and approved a companion ordinance (together, the
“Ordinances”), providing for a temporary moratorium on evictions in the City of Cupertino for
renters on the basis of nonpayment of rent where the failure to pay rent results from wage loss
resulting from the novel coronavirus (COVID-19) pandemic, and on no-cause evictions. Under
the provisions of the Ordinances, the temporary moratorium will not commence until the City
Council adopts a resolution setting forth the facts and circumstances for commencement. Upon
commencement, the Urgency Ordinance shall expire sixty (60) days after its adoption, unless
otherwise extended by approval of the City Council; and
WHEREAS, the Ordinances are a temporary moratorium intended to promote stability
and fairness within the residential rental market in the City during the COVID-19 pandemic
outbreak, and to prevent avoidable homelessness thereby serving the public peace, health,
safety, and public welfare and to enable tenants in the City whose income and ability to work is
affected due to COVID-19 to remain in their homes; and
WHEREAS, the City finds that the Ordinances are reasonably related to the protection of
life throughout the entire jurisdictional boundaries of the City, given the City-wide nature of the
local health emergency; and
WHEREAS, the adoption and implementation of this Resolution is not a project under
the requirements of the California Environmental Quality Act, together with related State CEQA
Guidelines (collectively, “CEQA”) because it has no potential for resulting in physical change in
the environment. In the event that this Ordinance is found to be a project under CEQA, it is
subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it
can be seen with certainty to have no possibility that the action approved may have a significant
effect on the environment. CEQA applies only to actions which have the potential for causing a
significant effect on the environment. Where it can be seen with certainty that there is no
possibility that the activity in question may have a significant effect on the environment, the
activity is not subject to CEQA. In this circumstance, the proposed action to enact tenant
protections would have no or only a de minimis effect on the environment because it helps
preserve the status quo and reduce displacement.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
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CUPERTINO THAT:
The 45-day moratorium on nonpayment of rent residential evictions, as set forth in the
provisions under the COVID-19 Urgency Ordinance passed by Cupertino City Council on
March 24, 2020 shall hereby commence. The terms of this moratorium may be extended by
Council adoption of a subsequent Resolution.
Introduced and adopted as an ordinance of the City of Cupertino at a special meeting of the
City Council held on March 24, 2020, by the following vote:
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
SIGNED:
__________________
Steven Scharf, Mayor
City of Cupertino
________________________
Date
ATTEST:
________________________
Kirsten Squarcia, City Clerk
________________________
Date
APPROVED AS TO FORM:
__________________________
Heather Minner, City Attorney
________________________
Date
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1
ORDINANCE NO. _____________
AN ORDINANCE OF THE CITY OF CUPERTINO ENACTING A TEMPORARY
MORATORIUM ON EVICTIONS DUE TO NONPAYMENT OF RENT FOR RESIDENTIAL
TENANTS WHERE THE FAILURE TO PAY RENT RESULTS FROM INCOME LOSS
RESULTING FROM THE NOVEL CORONAVIRUS (COVID-19)
WHEREAS, on February 3, 2020 and pursuant to Section 101080 of the California
Health and Safety Code, the Santa Clara County Health Officer (the “Health Officer”) declared
a local health emergency throughout Santa Clara County (the “County”) related to the novel
coronavirus (“COVID-19”); and
WHEREAS, on February 3, 2020, and pursuant to Section 8630 of the California
Government Code, the Santa Clara County Director of Emergency Services proclaimed a local
emergency throughout the County related to COVID-19; and
WHEREAS, on March 4, 2020, California Governor Gavin Newsom declared a State
of Emergency to make additional resources available, formalize emergency actions already
underway across multiple state agencies and departments, and help the state prepare for a
broader spread of COVID-19; and
WHEREAS, on March 4, 2020, the County issued updated guidance for workplaces
and businesses, stating that employers should take steps to make it more feasible for their
employees to work in ways that minimize close contact with large numbers of people,
including: 1) suspend nonessential employee travel; and 2) minimize the number of employees
working within arm’s length of one another, including minimizing or canceling large in-person
meetings and conferences. The County also recommended that persons at higher risk of severe
illness should stay home and away from crowded social gatherings of people as much as
possible such as parades, conferences, sporting events, and concerts where large numbers of
people are within arm’s length of one another; and
WHEREAS, as of March 9, 2020, the County reported that there were 43 cases of
persons testing positive for COVID-19 in the County, an increase of 23 in five days. In
response, the County, pursuant to its authority under California Health and Safety Codes
sections 101040, 101085, and 120175, ordered that private mass gatherings attended by one
thousand persons are prohibited until March 31, 2020 (the “Order”). This Order was based
upon evidence of increasing transmission of COVID-19 within the County, scientific evidence
regarding the most effective approaches to slow the transmission of communicable diseases
generally and COVID-19 specifically, as well as best practices as currently known and
available to protect vulnerable members of the public from avoidable risk of serious illness or
death resulting from exposure to COVID-19; and
WHEREAS, on March 11, 2020, the City Manager for the City of Cupertino (“City”)
declared a local emergency throughout the City related to COVID-19; and
WHEREAS, on March 17, 2020, the Council ratified and continued the City Manager’s
declaration of a local emergency; and
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WHEREAS, on March 13, 2020, the County issued a new Order mandating a
countywide moratorium on gatherings of more than 100 persons and a conditional countywide
moratorium on gatherings of between 35-100 persons. California Governor Gavin Newsom
also called for bar, wineries, and brewery pubs to close. These restrictions impact how
businesses operate that rely on customer patronage and will result in loss revenue for those that
cannot continue to operate their businesses during this time or must operate under severe
restrictions; and
WHEREAS, on March 16, 2020, Governor Newsom issued Executive Order N-28-20,
which grants cities, counties and cities and counties broad authority to enact temporar y
moratoria on residential and commercial evictions based on a non-payment of rent caused by
the COVID-19 pandemic or the federal, state and/or local response to the COVID-19
pandemic; and
WHEREAS, also on March 16, 2020 the County, along with five other Bay Area
counties, issued a sweeping a Shelter in Place Order; and
WHEREAS, the County Superintendent of Schools and all district superintendents in
the County decided to close schools to students for three weeks beginning Monday, March 16,
2020. These school closures will cause children to have to remain at home, leading to many
parents adjusting their work schedules to take time off work, whether paid or unpaid. Hourly
wage earners are unlikely to be paid for time off. The inability to work due to school closures
will economically strain those families who cannot afford to take off time from work to stay at
home; and
WHEREAS, on March 19, 2020, Governor Newsom ordered all individuals living in
the State of California to stay home or at their place of residence, with limited exceptions, to
stop the spread of COVID-19; and
WHEREAS, as a result of the State of Emergency and the subsequent prohibitions on
large gatherings, and shelter in place orders, many City residential tenants have experienced
sudden and substantial income loss due to business and school closures, layoffs or reductions
in work hours and extraordinary out-of-pocket medical expenses, making it challenging for
them to pay rent on time and thus, more likely to face the prospect of eviction; and
WHEREAS, this Ordinance is a temporary moratorium intended to promote stability
and fairness within the residential rental market in the City during the COVID-19 pandemic
outbreak, and to prevent avoidable homelessness thereby serving the public peace, health,
safety, and public welfare and to enable tenants in the City whose income and ability to work
is affected due to COVID-19 to remain in their homes; and
WHEREAS, displacement through eviction destabilizes the living situation of tenants
and impacts the health of Cupertino’s residents by uprooting children from schools, disrupting
the social ties and networks that are integral to citizens' welfare and the stability of
communities within the City; and
WHEREAS, displacement through eviction creates undue hardship for tenants through
additional relocation costs, stress and anxiety, and the threat of homelessness due to the lack of
alternative housing; and
WHEREAS, during the COVID-19 pandemic outbreak, affected tenants who have lost
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3
income due to impact on the economy or their employment are at risk of homelessness if they
are evicted for non-payment as they will have little or no income and thus be unable to secure
other housing if evicted; and
WHEREAS, housing instability threatens the public peace, health and safety as eviction
from one’s home can lead to homelessness; loss of community; stress and anxiety caused by
the experience of displacement; interruption of the education of any children in the home;
increased incidence of families moving into overcrowded conditions creating greater risk for
the spread of COVID-19; and
WHEREAS, the City, pursuant to its police powers, has broad authority to maintain
public peace, health, and safety of its community and preserve quality of life for residents
throughout the City; and
WHEREAS, given the severe consequences to public health and safety throughout the
City that would result from evictions of residential tenants during the City-wide local health
emergency, the City finds and determines that a temporary moratorium on evictions based on
non-payment of rent due to COVID-19 or the government response to COVID-19 and no-fault
terminations of tenancy (unless required for the health and safety of the tenant or the landlord)
is necessary to curb the spread of COVID-19 across all areas of the City and contain the virus
to the greatest extent possible and thereby serve the public peace, health and safety.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
CUPERTINO:
SECTION 1: Title
This Ordinance shall be known as the “COVID-19 Eviction Moratorium Ordinance.”
SECTION 2: Policy and Purposes Declaration
The purposes of this Ordinance are to promote housing stability during the COVID-19 pandemic
and to prevent avoidable homelessness. This Ordinance is immediately necessary for the
immediate preservation of the public peace, health or safety because the COVID-19 pandemic has
the potential for destabilizing the residential rental market for all of the reasons described herein.
It is intended to enable tenants in the City whose employment and income have been affected by
the COVID-19 pandemic to be temporarily exempt from eviction for non-payment of rent and to
reduce the risk that these events will lead to anxiety, stress and potential homelessness for the
affected City residents and their communities thereby serving the public peace, health, safety, and
public welfare. The temporary moratorium on evictions for non-payment imposed by this
Ordinance is created pursuant to the City's general police powers to protect the health, safety, and
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welfare of its residents and exists in addition to any rights and obligations under state and federal
law.
SECTION 3: Effective Date; Termination Date
This Ordinance shall be effective thirty (30) days after date of its adoption and shall remain in
effect for a period of six (6) months after its effective date and thereafter is repealed unless
extended by Ordinance.
SECTION 4: Moratorium on Nonpayment and No Cause Terminations
A. During the term of this Ordinance, while a moratorium is activated by Resolution of the
City Council, no landlord shall endeavor to evict a tenant in either of the following
situations:
(1) for nonpayment of rent if the tenant demonstrates that the tenant is unable to pay full
rent due to financial impacts related to COVID-19, including, but not limited to, tenant lost
household income as a result of any of the following: (1) being sick with COVID-19, or
caring for a household or family member who is sick with COVID-19; (2) lay-off, loss of
hours, or other income reduction resulting from business closure or other economic or
employer impacts of COVID-19; (3) compliance with a recommendation from a
government health authority to stay home, self-quarantine, or avoid congregating with
others during the state of emergency; (4) extraordinary out-of-pocket medical expenses; or
(5) child care needs arising from school closures related to COVID-19; or
(2) for a no-fault eviction unless necessary for the health and safety of tenants, neighbors,
or the landlord. A “no-fault eviction” refers to any eviction for which the notice to terminate
tenancy is not based on alleged fault by the tenant, including but not limited to eviction
notices served pursuant to Code of Civil Procedure sections 1161(1), 1161(5), or 1161c.
B. A landlord who knows that a tenant cannot pay some or all of the rent temporarily for the
reasons set forth above shall not file or prosecute an unlawful detainer action based on a 3-
day pay or quit notice, or otherwise seek to evict for nonpayment of rent.
C. Any 3-day pay or quit notice issued to a tenant shall be accompanied with written notice
of the identity and mailing address of the Landlord, notice of the Moratorium and this
Ordinance on a form approved by the City, and the amount of rent due.
D. A landlord knows of a tenant’s inability to pay rent within the meaning of Section 4.B if
the tenant, before expiration of the 3-day pay or quit notice, notifies the landlord in writing
of lost income and inability to pay full rent due to financial impacts related to COVID-19.
For purposes of this Ordinance, “in writing” includes email or text communications to a
landlord or the landlord’s representative with whom the tenant has previously corresponded
by email or text.
E. The following documents, provided to the landlord at any point in time, shall create a
rebuttable presumption that the tenant has met the documentation requirement set forth in
Section 4.D, however, they are not the exclusive form of documentation demonstrating
impacts to income due to COVID-19:
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(1) letter from employer citing COVID-19 as a reason for reduced work hours or
termination;
(2) employer paycheck stubs;
(3) bank statements.
Any medical or financial information provided to the landlord shall be held in
confidence, and only used for evaluating the tenant’s claim.
F. Nothing in this Ordinance shall relieve the tenant of liability for the unpaid rent, which the
landlord may seek after expiration of the Moratorium and the tenant must pay within 180
days of the expiration of the Moratorium. During that 180-day period, the protections
against eviction found in Section 4 of this Ordinance apply as to any rent the tenant was
unable to pay as a result of the causes set forth in Section 4.A.1..
G. A landlord may not charge or collect a late fee or other penalty for rent that is delayed for
the reasons stated in this Ordinance; nor may a landlord seek rent that is delayed for the
reasons stated in this Ordinance through the eviction process.
H. This Ordinance applies to pending nonpayment eviction notices and no-fault eviction
notices issued on or after March 11, 2020.
SECTION 5: Enforcement
A. Non-compliance with any applicable component of this Ordinance shall constitute an
affirmative defense for a tenant against any unlawful detainer action under California Code
of Civil Procedure section 1161, as amended.
B. Any landlord that fail(s) to comply with this Ordinance may be subject to civil proceedings
for displacement of tenant(s) initiated by the City or the tenant household for actual and
exemplary damages.
C. Whoever is found to have violated this Ordinance shall be subject to appropriate injunctive
relief and shall be liable for damages, costs and reasonable attorneys' fees.
D. Treble damages shall be awarded for a landlord's willful failure to comply with the
obligations established under this Ordinance.
SECTION 6: Severability
The City Council declares that each section, sub-section, paragraph, sub-paragraph, sentence,
clause and phrase of this ordinance is severable and independent of every other section, sub-
section, paragraph, sub-paragraph, sentence, clause and phrase of this ordinance. If any section,
sub-section, paragraph, sub-paragraph, sentence, clause or phrase of this ordinance is held invalid,
or its application to any person or circumstance, be determined by a court of competent jurisdiction
to be unlawful, unenforceable or otherwise void, the City Council declares that it would have
adopted the remaining provisions of this ordinance irrespective of such portion, and further
declares its express intent that the remaining portions of this ordinance should remain in effect
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after the invalid portion has been eliminated.
SECTION 7: Compliance with CEQA
The City Council finds that the adoption and implementation of this Ordinance is not a project
under the requirements of the California Environmental Quality Act, together with related State
CEQA Guidelines (collectively, “CEQA”) because it has no potential for resulting in physical
change in the environment. In the event that this Ordinance is found to be a project under
CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section
15061(b)(3) because it can be seen with certainty to have no possibility that the action approved
may have a significant effect on the environment. CEQA applies only to actions which have the
potential for causing a significant effect on the environment. Where it can be seen with certainty
that there is no possibility that the activity in question may have a significant effect on the
environment, the activity is not subject to CEQA. In this circumstance, the proposed action to
enact tenant protections would have no or only a de minimis effect on the environment because
it helps preserve the status quo and reduce displacement. The foregoing determination is made
by the City Council in its independent judgment.
SECTION 8: Publication
The City Clerk is directed to cause this ordinance to be published in the manner required by
law.
Introduced as an ordinance of the City of Cupertino at a special meeting of the City Council held
on March 24, 2020, by the following vote:
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
SIGNED:
__________________
Steven Scharf, Mayor
City of Cupertino
________________________
Date
ATTEST:
________________________
Kirsten Squarcia, City Clerk
________________________
Date
APPROVED AS TO FORM:
__________________________
Heather Minner, City Attorney
________________________
Date
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CITY OF CUPERTINO
Legislation Text
Subject: Emergency Assistance Funds for Tenants at Risk of Eviction due to Impacts of by the Novel
Coronavirus (“Emergency Assistance Funds”)
Adopt Resolution No. 20-031 to:
1. Authorize $350,000 in funds directed towards the Emergency Assistance Fund for tenants at
risk of eviction due to impacts of the coronavirus disease (COVID-19)
2. Authorize the City Manager to negotiate and execute an agreement with West Valley
Community Services to implement the Emergency Assistance Funds program.
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CITY COUNCIL STAFF REPORT
Meeting: March 24, 2020
Subject
Emergency Assistance Funds for Tenants at Risk of Eviction due to Impacts of by the
Novel Coronavirus (“Emergency Assistance Funds”)
Recommended Action
1. Adopt Resolution No. ____ authorizing $350,000 in funds directed towards the
Emergency Assistance Fund for tenants at risk of eviction due to impacts of the
coronavirus disease (COVID-19)
2. Authorize the City Manager to negotiate and execute an agreement with West
Valley Community Services to implement the Emergency Assistance Funds
program.
Discussion
The State of California and the County of Santa Clara have declared a state and local
emergency, respectively, to help prepare for a broader spread of COVID-19. On March
11, 2020, the City Council proclaimed a local emergency regarding COVID-19. In
addition, the Council directed staff to bring forward an urgency resolution to assist
tenants with emergency funds.
On March 17, 2020, Mountain View Councilmembers approved a $500,000 program to
provide rent relief to tenants impacted by COVID-19. To help the organization provide
emergency assistance, on March 17, 2020, the Sunnyvale City Council approved a
$250,000 grant to Sunnyvale Community Services help people struggling with bills.
Background
As the response to this public health emergency escalates, many residents will feel direct
economic impacts from business closure, event cancellation, and layoffs. The Santa Clara
County 2019 Point in Time Count1 found that the primary cause of first-time
1 2019 Santa Clara County Homeless Census and Comprehensive Survey Report
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homelessness was job loss. When asked what may have prevented homelessness, the
answer was rent or mortgage assistance, and then employment assistance.
West Valley Community Services (WVCS)
WVCS is the largest not for profit agency in Cupertino that works directly with the
Cupertino community providing food and economic assistance to community members
in need. On March 19, 2020, staff received an update from WVCS regarding the demand
for their services during this COVID-19 pandemic. The update included a request for a
grant to WVCS to support bill/rental assistance for Cupertino residents impacted by
COVID-19.
To assist with the impacts of COVID-19 in the community, the City can immediately
implement an Emergency Assistance Funds program. Funds would be solely used to
provide rent relief to Cupertino tenants impacted by COVID-19. WVCS has committed
to administer this program for the City and has requested $325,000 to provide initial
funding for twenty-five households. WVCS is seeking a twenty-five percent
administrative fee. As the impacts of the COVID-19 pandemic remain uncertain, the need
for additional funding will be considered if necessary. Efforts will begin as quickly as
possible in order to help renters who are facing layoffs now and are at risk of eviction.
City Funding Sources
The City’s Housing and Human Services Grant Program is made up of five funding
sources. Of these five funding sources, only the BMR AHF Public Services fund and the
General Fund HSG would allow for immediate disbursement of emergency assistance
funds.
Capital Housing Funds:
1. Below Market Rate (BMR) Affordable Housing Fund (AHF) Capital Housing
Projects (up to $6,000,000 as of 3/22/20)
2. Community Development Block Grant (CDBG) Capital Housing Projects (approx.
$258,000)
Public Services Funds:
3. BMR AHF Public Services ($50,000 limit)
4. CDBG Public Services (approx. $59,000)
5. General Fund Human Services Grant (HSG) Program ($100,000 limit)
FY 20-21 Housing Commission Funding Recommendations
On March 12, 2020, the Housing Commission held a public hearing to finalize their initial
rating and ranking of the FY 2020-21, 2021-22, and 2022-23 CDBG, BMR AHF, and HSG
grant applications. It should be noted that all CDBG, BMR AHF, and HSG funds have
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been requested in full for FY 20-21 and the Commission recommended approval of the
proposed funding allocations. The Housing and Human Services grant funding
allocations item is scheduled for City Council on April 21, 2020.
BMR AHF Fund
The BMR AHF receives its revenue from the payment of housing mitigation fees from
non-residential (commercial, retail, hotel, research and development (R&D) and
industrial) and residential development. Formal agreements and monitoring are
required for this program, but the requirements are less stringent than federal funding.
The BMR AHF fund has a current balance of $6,000,000. This funding source is offered
in two categories: BMR AHF Capital Housing funds and BMR AHF Public Services funds.
Funding Source #1: BMR AHF Capital Housing Funds (not eligible)
BMR AHF Capital Housing funds are available as a loan to eligible non-profit and for-
profit Development Entities (DEs) to submit proposals for eligible funding activities,
which include, but are not limited to:
Land acquisition
New construction
Acquisition and/or rehabilitation of buildings for permanent affordability
Substantial rehabilitation
Due to the current development restrictions and loan requirement, this funding source is not
available for immediate use for the Emergency Assistance Funds program.
Funding Source #2: BMR AHF Public Services Funds (eligible)
On April 17, 2018, City Council set an annual limit of $50,000 for the BMR AHF Public
Services funds starting in FY 2018-19. BMR AHF Public Services funds must be used for
eligible public service programs that will serve low- and/or moderate-income households
located within the City. Eligible programs include tenant/landlord dispute resolution,
fair housing programs, and other programs serving low- and/or moderate-income
households.
The City currently provides $50,000 in BMR AHF Public Services funds to Project Sentinel
for Fair Housing & Tenant-Landlord Counseling & Dispute Resolution Services. The City
is required to fund fair housing programs to remain compliant with the Housing Element
and federal Community Development Block Grant (CDBG) funds.
This funding source is available for immediate use for the Emergency Assistance Funds program.
Council should decide whether to award these funds as a one-time use or increase the annual limit
to accommodate for the program.
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CDBG Funding
The United States Department of Housing and Urban Development (HUD) annually
allocates grants such as CDBG, Home Investment Partnerships Program (HOME),
Housing Opportunities for People with AIDS (HOPWA), and Emergency Shelter Grants
(ESG) to local jurisdictions for community development activities. Cupertino is one of
nine entitlement jurisdictions within Santa Clara County. This is Cupertino’s eighteenth
year as an entitlement jurisdiction receiving a CDBG grant directly from HUD. This
funding sources is offered in two categories: CDBG Capital Housing funds and CDBG
Public Services funds.
Funding Source #3: CDBG Capital Housing Projects (not recommended):
The City estimates allocating up to $258,000 in funding for eligible CDBG Capital
Housing Projects on a competitive basis for FY 20/21. CDBG Capital Housing Projects
funds must be directed toward expanding and maintaining the affordable housing
supply; promoting housing opportunities and choices; maintaining and improving
community facilities; increasing economic opportunities, accessibility, energy efficiency
and sustainability; and providing supportive services specifically for persons of very -low
and/or low-income.
Due to the City‘s existing obligation of CDBG funds through June 20, 2020 and the extensive
documentation required for federal funds, this funding source is not recommended for the
Emergency Assistance Funds program.
Funding Source #4: CDBG AHF Public Services (not recommended):
The City estimates allocating up to $59,000 in funding for eligible CDBG Public
Services programs on a competitive basis for FY 20/21. CDBG Public Services funds must
be used to serve low-income households within the City.
Due to the City‘s existing obligation of CDBG funds through June 20, 2020 and the extensive
documentation required for federal funds, this funding source is not recommended for the
Emergency Assistance Funds program.
Funding Source #5: General Fund HSG
On April 17, 2018, City Council set an annual limit of $100,000 for the General Fund HSG
starting in FY 2018-19. HSG funds must be used to serve low- and/or moderate-income
households within the City.
Eligible HSG programs may include, but not be limited to:
Senior services
Homeless services
Other services that serve low- and/or moderate-income households
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Due to the expanding homeless crisis, it is expected that programs serving the homeless
will continue to increase. On March 12, 2020, the Housing Commission recommended
an increase in the General Fund allocation towards the HSG fund from $100,000 to an
annual amount of $125,000 to provide WVCS with additional funding for the Haven to
Home program serving the homeless. The Housing and Human Services grant funding
allocations item is scheduled for City Council on April 21, 2020.
This funding source is available for immediate use for the Emergency Assistance Funds program.
Council should decide whether to award these funds as a one-time use or increase the annual limit
to accommodate for the program.
Staff will continue to work closely with community partners, including potential funders,
to explore additional efforts to support members of our community, as well as continuing
to seek emergency funds from county, state, and federal sources.
Program Guidelines
Program Guidelines will replicate existing emergency assistance funds offered by WVCS
to prevent homelessness. The Cupertino Emergency Assistance Fund will include
restrictions limiting funds to Cupertino residents who are also impacted by COVID-19.
Funds will be available to support impacted renters earning up to 120% of the area
median income (AMI) and will provide a maximum of three months rental assistance or
$10,000, whichever comes first.
2019 Housing & Community Development (HCD) Maximum Income Limits*
Household Size 1 2 3 4 5 6
Income Limit-
120% AMI $110,400 $126,150 $141,950 $157,700 $170,300 $182,950
*Effective May 6, 2019. Income Limits will be updated each year by HCD.
Sustainability Impact
There are no sustainability impacts.
Fiscal Impact
Sufficient funding will be available and budgeted for the Emergency Assistance Fund
program. BMR AHF programs and projects are funded by housing mitigation fees
collected from residential and non-residential development projects. HSG programs are
funded through the General Fund.
Prepared by: Kerri Heusler, Housing Manager
Approved by: Dianne Thompson, Assistant City Manager
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Attachments:
A - Draft Resolution
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Attachment A - Draft Resolution is forthcoming and will be provided as a written
communication at the meeting.
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CITY OF CUPERTINO
Legislation Text
Subject:Consideration of an Emergency Ordinance to provide tenant protection to commercial tenants.
In consideration of the following policy considerations, it is staff’s recommendation that Council not impose a
moratorium on commercial evictions at this time due to the unique nature of commercial leasing and the State
and Federal resources currently available to business owners. Furthermore, the City does not currently have
the staffing resources nor allocated budget to develop meaningful loan or grant programs for small
businesses. It is recommended staff continue to facilitate business owners’ participation in Federal, State, and
regional economic relief programs.
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CITY COUNCIL STAFF REPORT
Meeting: March 24, 2020
Subject
Consideration of an Emergency Ordinance to provide tenant protection to commercial
tenants.
Recommended Action
In consideration of the following policy considerations, it is staff’s recommendation that
Council not impose a moratorium on commercial evictions at this time due to the unique
nature of commercial leasing and the State and Federal resources currently available to
business owners. Furthermore, the City does not currently have the staffing resources
nor allocated budget to develop meaningful loan or grant programs for small
businesses. It is recommended staff continue to facilitate business owners’ participation
in Federal, State, and regional economic relief programs.
Discussion
The effects of Coronavirus Disease 19 (COVID-19) on the global and local economies are
impacting many Bay Area companies in both the technology and non-technology
sectors. On March 4, 2020, Governor Gavin Newsom declared a State of Emergency in
California due to the threat of COVID-19. During the early stages of the pandemic many
companies and agencies had implemented broad remote work policies to prevent
exposure in the workplace. Additionally, on March 16, 2020 the County of Santa Clara,
along with five other Bay Area counties, ordered residents to Shelter-in-Place. This
drastic and sudden decline of consumers patronizing local restaurants and other retail
establishments will likely result in business closures should the situation continue for a
significant amount of time.
City Council direction on March 17, 2020 included a request that staff consider a
moratorium on commercial evictions for nonpayment of rent. Staff have been in
discussions on the possibility of enacting an ordinance establishing a moratorium on
non-payment of rent evictions for small business tenants with incomes affected by the
COVID-19 pandemic.
There are several differences between residential and commercial leases that require a
separate analysis for each. Eviction affects residential and commercial tenants
differently. While residential tenants involve individuals and families, commercial
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tenants encompass a wide range of businesses, from sole proprietorships and
partnerships, to multinational Fortune 500 companies. The monetary range in rent is
exponentially greater in the commercial rental space and the level of investment and
sophistication of individual contracts are not comparable.
The rental marketplace is different for commercial landlords and tenants than it is for
residential. Typically, commercial tenants are much better positioned to negotiate with
their landlords when they are unable to pay their rent, and landlords are more likely to
want to work with their commercial tenants in order to avoid disruption in the tenant
mix and overall operations of the commercial center.
Furthermore, the urgency of the need for intervention is also a stark difference. In
residential evictions, some of our most at-need community members are in danger of
being displaced from a safe, private home suitable for quarantining to having to live
with extended family members in housing with more density and with more at risk age-
groups, or to be forced to live on the streets. This creates a health risk to the individuals
affected, as well as the community at large. Commercial evictions, however, are
generally not related to concern for public health but rather to individual and public
economic well-being.
At this time the majority of cities in California that have passed moratoriums on
commercial evictions are in Southern California (Burbank, Camarillo, Moorpark,
Oxnard, Santa Monica, and Simi Valley) with the cities of San Francisco and Los Angeles
as exceptions. The business communities and property owner makeup of the
aforementioned cities are very different from Cupertino. Moreover, City of San Jose
expressly did not include commercial tenants in its recent eviction moratorium.
Additionally, not all commercial properties are owned by large corporations and smaller
independent property owners are going to be affected by this economic hardship as
well. It may not be in the City’s best interest to set a precedence on commercial
regulation at this time.
The Economic Development Manager has been in contact with the major property
owners/managers of commercial centers in Cupertino since Governor Newsom’s State of
Emergency declaration. Commercial property owners/managers have indicated an
interest in supporting their tenants. For example Sand Hill Property Company has been
working with its Main Street tenants to offer gift cards with purchase (these special
promotions are included on the www.cupertino.org/OpenForBusiness website). Kimco
Realty, which owns and manages Cupertino Village, has created a corporate task force
to work with tenants on a case-by-case basis to provide relief. Staff has not heard of
commercial property owners/managers wishing to evict tenants at this time.
In consideration of these factors, it is not recommendedthat Council impose a
moratorium on commercial evictions at this time.
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CURRENT STATE AND FEDERAL RESOURCES AVAILABLE TO BUSINESSES
Currently there are resources available from the State and Federal Government for small
businesses and commercial property landlords. The Federal Government recognizes
that when an economic disaster has been declared, impacted businesses that experience
economic injury can apply for a Government loan administered by the Small Business
Administration (SBA). Both the commercial landlord and the tenant can separately
apply to the fund on proof of economic injury.
On March 19, 2020 the SBA amended its disaster declaration to include all California
small businesses (Attachment A - SBA California Declaration #16332) economically
impacted by COVID-19. SBA Economic Injury Disaster Loans are working capital
(rather than loans for physical damage) to help small businesses and most private, non-
profit organizations of all sizes meet their ordinary and necessary financial obligations
that cannot be met as a direct result of the disaster. These loans are intended to assist
through the disaster recovery period.
Federal law limits these to $2,000,000 maximum for alleviating economic injury caused
by the disaster, and the actual amount of each loan is limited to the economic injury
determined by SBA, less business interruption insurance and other recoveries up to the
administrative lending limit. SBA also considers potential contributions that are
available from the business and/or its owner(s) or affiliates.
These loans may be used to pay fixed debts, payroll, accounts payable and other bills
that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small
businesses without credit available elsewhere; businesses with credit available
elsewhere are not eligible. The interest rate for non-profits is 2.75%.
SBA offers loans with long-term repayments in order to keep payments affordable, up to
a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each
borrower’s ability to repay. The filing deadline is December 16, 2020. (Attachment B.)
The State of California Employment Development Department (EDD) has programs to
assist employers in dealing with potential closures or layoffs. Services include
expedited processing of eligible Unemployment Insurance and Disability Insurance
claims. Employers can apply for the Unemployment Insurance (UI) Work Sharing
Program if reduced production, services, or other conditions cause them to seek an
alternative to layoffs. (Attachment C.) Employers planning a closure or major layoffs as
a result of the coronavirus can get help through the Rapid Response program. Rapid
Response teams will meet with business owners to discuss needs, help avert potential
layoffs, and provide immediate on-site services to assist workers facing job losses.
(Attachment D.) Business owners can receive assistance and services at the following
local U.S. Department of Labor America’s Job Center of California offices:
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NOVA Job Center
505 W Olive Avenue, #550
Sunnyvale, CA 94086
North San Jose America’s Job Center of
California
1901 Zanker Road
San Jose, CA 95112
Work2Future San Jose Job Center
1601 Foxworthy Avenue
Kirk Community Center
San Jose, CA 95118
Menlo Park Workforce Services Center
1200 O’Brien Drive
Menlo Park, CA 94025
Additionally, the EDD offers an optional Disability Insurance Elective Coverage (DIEC)
program for employers and self-employed individuals who are not required to pay into
State Disability Insurance (SDI) but want to be covered by Disability Insurance (DI)
and Paid Family Leave (PFL). DIEC is funded through quarterly premiums and can
protect against partial loss of income when unable to work.
DI provides benefits to eligible DIEC participants when they are unable to work and lose
wages due to their own non-work-related illness, injury, pregnancy, or childbirth.
Also, employers experiencing a hardship as a result of COVID-19 may request up to a
60-day extension of time from the EDD to file their state payroll reports and/or deposit
state payroll taxes without penalty or interest. A written request for extension must be
received within 60 days from the original delinquent date of the payment or return.
On a regional level the Silicon Valley Community Foundation (SVCF) is launching
the Small Business Relief Fund to provide immediate support, in the form of loans or
grants, to struggling self-employed and small business owners. SVCF will partner
with Opportunity Fund, California’s largest nonprofit microlender, to ensure critical
capital remains available to small businesses throughout this crisis. The type of support
provided by Opportunity Fund to each business will depend on the business’ current
situation (https://www.opportunityfund.org/assistance-for-small-business-owners-
affected-by-covid-19/).
On March 17, 2020 Facebook announced it will be offering $100 million in cash grants
and ad credits for up to 30,000 eligible small businesses in over 30 countries where
Facebook operates (https://www.facebook.com/business/boost/grants?ref=eml). Exact
details have not yet been released.
EXISTING OR PROPOSED LOAN OR GRANT PROGRAMS FOR BUSINESSES IN
OTHER CITIES
Few cities have created or approved relief funds in an effort to help local businesses
survive the economic impacts of the COVID-19 pandemic. The following is a brief
overview:
Entity and Program
Name
Total Fund
Amount
Terms
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City of Seattle: Small
Business Stabilization
Fund
$1,500,000 - Emergency funds to provide working capital grants in
amounts up to $10,000 to qualifying small businesses.
- The business owner must have a low- or moderate-
income (≤80% of the Area Median Income).
- The business must have five employees or less.
- The business must have a physical establishment.
- The business must have experienced a loss of income due
to COVID-19.
- Businesses that are franchises, chains, or restricted to
patrons below the age of 18 will not be eligible for award.
- Funding source: Community Development Block Grant
(CDBG) funds.
- https://www.seattle.gov/office-of-economic-
development/small-business/small-business-programs-
/stabilization-fund-
City of Sacramento:
Small Business
Emergency Economic
Relief Fund
$1,000,000 - Zero interest secured loans of up to $25,000 per business.
- Initial loan payments must begin within 90 days.
- Up to $1 million available for businesses with 25 or fewer
full-time equivalent employees (FTE), part-time employees
are included within an FTE calculation.
- Of the total amount, a minimum of $250,000 will be made
available for businesses with 5 or fewer FTE.
- Applications reviewed on a rolling basis by a committee of
city staff and external partners.
- Funding decision within 2-3 weeks of receiving a complete
application.
- Funding anticipated to be released within 2 weeks of
approval (pending approval of third-party fiscal
intermediary).
- Funding source: General Fund.
- Due to the overwhelming response, the City is no longer
accepting new applications after 3 days of opening the
application process.
- https://www.cityofsacramento.org/Economic-
Development/Economic-Relief
City of Berkeley:
Berkeley Relief Fund
$3,000,000 - Emergency grants for businesses and non-profits that can
demonstrate a significant drop in revenues or patronage
from prior year.
- Exact details and application have not yet been released.
- Funding source: possibly General Fund and asking for
private donations.
- https://berkeleyrelieffund.org/
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Based on the limited details of available programs, sufficient funding and staffing
resources are essential in developing and launching a viable program, as well as
managing fund disbursements and loan repayments. The City’s Economic Development
Division does not have existing loan or grant programs from which to replicate
processes.
Sustainability Impact
No sustainability impact.
Fiscal Impact
No fiscal impact.
_____________________________________
Prepared by: Angela Tsui, Economic Development Manager and Joseph Petta, Deputy
City Attorney
Approved by: Dianne Thompson, Assistant City Manager
Attachments:
A – SBA California Declaration #16332
B – Small Business Administration (SBA) Fact Sheet on Economic Injury Disaster Loans
C – Employment Development Department (EDD) Guide and Fact Sheets on Work
Sharing
D – EDD Rapid Response resources
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Date: 03/19/2020
Amendment #1
U.S. SMALL BUSINESS ADMINISTRATION
FACT SHEET – ECONOMIC INJURY DISASTER LOANS
CALIFORNIA Declaration #16332
(Disaster: CA-00313)
Incident: CORONAVIRUS (COVID-19)
occurring: January 31, 2020 & continuing
All counties within the State of California;
the contiguous Arizona counties of: La Paz, Mohave & Yuma;
the contiguous Nevada counties of: Clark, Douglas, Esmeralda, Lyon, Mineral, Nye & Washoe;
and the contiguous Oregon counties of: Curry, Jackson, Josephine, Klamath & Lake
Application Filing Deadline: December 16, 2020
Disaster Loan Assistance Available:
Economic Injury Disaster Loans (EIDLs) – Working capital loans to help small businesses, small agricultural cooperatives, small
businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial
obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
Credit Requirements:
• Credit History – Applicants must have a credit history acceptable to SBA.
• Repayment – Applicants must show the ability to repay the loan.
• Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA
will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.
Interest Rates:
The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this disaster is
3.75 percent.
Loan Terms:
The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment payment based on the
financial condition of each borrower, which in turn will determine the loan term.
Loan Amount Limit:
The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to
the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit.
SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates. If a business is a major
source of employment, SBA has the authority to waive the $2,000,000 statutory limit.
Loan Eligibility Restrictions:
Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers
who did not maintain required flood insurance and/or hazard insurance on previous SBA loans.
Note: Loan applicants should check with agencies / organizations administering any grant or other assistance program under this
declaration to determine how an approval of SBA disaster loan might affect their eligibility.
Refinancing:
Economic injury disaster loans cannot be used to refinance long term debts.
Insurance Requirements:
To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance. By law, borrowers whose
damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance. SBA requires that
flood insurance coverage be the lesser of 1) the total of the disaster loan, 2) the insurable value of the property, or 3) the maximum
insurance available.
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Date: 03/19/2020
Amendment #1
Applicants may apply online, receive additional disaster assistance information and download applications at
https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email
disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard-of-hearing may
call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement
Center, 14925 Kingsport Road, Fort Worth, TX 76155.
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3/23/2020 Disaster Loan Assistance
https://disasterloan.sba.gov/ela/Information/EIDLLoans 1/1
Disaster Loan Assistance
Economic Injury Disaster Loans
« Previous Page
If you have suffered substantial economic injury and are one of the following types of businesses
located in a declared disaster area, you may be eligible for an SBA Economic Injury Disaster Loan
(EIDL):
Small Business
Small agricultural cooperative
Most private nonprofit organizations
Loan Amounts and Use
Substantial economic injury means the business is unable to meet its obligations and to pay its
ordinary and necessary operating expenses. EIDLs provide the necessary working capital to help small
businesses survive until normal operations resume after a disaster.
The SBA can provide up to $2 million to help meet financial obligations and operating expenses that
could have been met had the disaster not occurred. Your loan amount will be based on your actual
economic injury and your company's financial needs, regardless of whether the business suffered any
property damage.
Eligibility and Terms
The interest rate on EIDLs will not exceed 4 percent per year. The term of these loans will not exceed
30 years. The repayment term will be determined by your ability to repay the loan.
EIDL assistance is available only to small businesses when SBA determines they are unable to obtain
credit elsewhere.
A business may qualify for both an EIDL and a physical disaster loan. The maximum combined loan
amount is $2 million.
How to Apply
You can apply online for an SBA disaster assistance loan.
You must submit the completed loan application and a signed and dated IRS Form 4506-T giving
permission for the IRS to provide SBA your tax return information.
For additional information, please contact the SBA disaster assistance customer service center. Call 1-
800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov.
SBA.gov 3-Step Loan Process FEMA Disaster Assistance
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WORK SHARING UNEMPLOYMENT INSURANCE PROGRAM
This California program allows for the payment of Work
Sharing Unemployment Insurance benefits to individuals
whose wages and hours have been reduced. The program
is considered a temporary and practical alternative to
layoffs. For example:
• Due to an economic downturn, an employer with 100
employees finds it necessary to lay off 20 employees.
However, rather than lay off these employees, the
employer participates in the Work Sharing program.
The employer keeps all 100 employees on the payroll
but reduces their workweek from five days to four days,
thereby achieving the same desired 20 percent reduction
in payroll. All 100 employees continue to earn wages for
four days and also are eligible for Work Sharing benefits for
the fifth (nonworking) day. The employer retains all trained
staff and, when business improves, the employees resume
their five-day work schedule.
Background
California’s Work Sharing program was the first program of
its kind in the nation. It was established by the California
State Legislature in 1978 under Senate Bill 1471. The
objective of the Work Sharing program is to help employers
and employees avoid some of the burdens that accompany
a layoff situation. If employees are retained during a
temporary slowdown, employers can quickly gear up when
business conditions improve. Employers are spared the
expense of recruiting, hiring, and training new employees.
Employees are spared the hardship of total unemployment.
Who May Participate in Work Sharing?
Any employer who has a reduction in production, services,
or other conditions that cause the employer to seek an
alternative to layoffs may participate in the Work Sharing
program. Some of the specific requirements are:
• A minimum of two employees, comprising at least
10 percent of the employer’s regular workforce or a unit
of the workforce, must be affected by a reduction in
wages and hours worked.
• The reduction in weekly wages and hours worked also
must be at least 10 percent, not to exceed 60 percent.
• The company will maintain employees’ health and
retirement benefits under the same terms and conditions
as prior to the reduction in hours and wages or to the
same extent as other employees not participating in the
plan.
• A corporate officer or major stocker holder who is
deemed to have significant investment in the company
may not participate in the Work Sharing Program.
How Does an Employer Participate in Work
Sharing?
To participate in this program, employers may call or write:
EDD Special Claims Office
PO Box 419076
Rancho Cordova, CA 95741-9076
916-464-3343
The Special Claims Office will mail interested employers a
Work Sharing Plan Application, DE 8686 and other general
information, or the employer may download the Work
Sharing Plan Application, DE 8686 from the Internet at
www.edd.ca.gov/pdf_pub_ctr/de8686.pdf.
What Happens After the Employer’s Work
Sharing Plan Application is Approved?
The Special Claims Office in Sacramento sends the
employer a letter of approval, one mail claim packet for
each participating employee, and a ten-week supply of
weekly certification forms for each employee. During the
weeks of reduced hours and wages, the employer issues
the certification forms to the participating employees.
All Work Sharing claims are filed by mail. The employer
and participating employee complete the documents
contained in the mail claim packet. After completion,
the documents are mailed to the Special Claims Office to
establish an Unemployment Insurance claim. Employees
approved to participate in the program must meet regular
Unemployment Insurance claim filing requirements. After
the Unemployment Insurance claim is filed, the employer
issues a certification form to each participating employee.
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Benefits are paid weekly proportionate to the percentage
of reduction in hours and wages. For example:
• An employee normally works a five-day workweek and
is paid $500. If this employee’s workweek is reduced to
four days, the employee’s weekly wages would be $400.
This is a 20 percent reduction in wages and hours. The
Work Sharing benefits for this employee are 20 percent
of the Unemployment Insurance benefits the employee
would receive if the employee were totally unemployed.
If the employee’s weekly Unemployment Insurance benefit
amount is $300, the employee would qualify for $60 in
Work Sharing benefits. This results in a reduction in gross
wages of only $40 for that week ($400 + $60 = $460).
How is the Employer Charged?
Employers are charged for Work Sharing Unemployment
Insurance benefits in the same manner as for regular
Unemployment Insurance benefits. Questions regarding
employer charges may be directed to:
EDD Contribution Rate Group
916-653-7795
The Advantages of Work Sharing
The Work Sharing program can meet employers’ needs due
to its built-in flexibility and possible variations by:
• Minimizing or eliminating the need for layoffs and the
accompanying hardships for employees.
• Enabling a business to retain trained employees and
avoid the expense of recruiting, hiring, and training new
employees.
• Retaining employees during a temporary slowdown
allowing employers to quickly gear-up when business
conditions improve.
• Treating employees more equitably than layoffs, which
place the burden of economic adjustments for an entire
business on relatively few employees.
• Allowing almost all types of business or industry.
For More Information
For further information, please contact:
EDD Special Claims Office
PO Box 419076
Rancho Cordova, CA 95741-9076
916-464-3343
For additional information on other EDD programs and
services, please visit EDD’s Internet site at www.edd.ca.gov.
The EDD is an equal opportunity employer/program.
Auxiliary aids and services are available upon request to individuals with disabilities.
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The EDD is an equal opportunity employer/program. Auxiliary aids and services are available upon request to individuals with
disabilities. Requests for services, aids, and/or alternate formats need to be made by calling 1-866-490-8879 (voice). TTY users, please
call the California Relay Service at 711.
Fac t Sheet
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What is Rapid Response?
Rapid Response is a proactive, business-focused
program designed to assist companies facing potential
layoffs or plant closures. Rapid Response teams provide
early intervention assistance to help avert potential
layoffs, and immediate on-site services to assist workers
facing job losses. Rapid Response services are tailored
to each company based on the needs of the affected
employees. These services are carried out by state and
local workforce development agencies in partnership
with the America’s Job Center of CaliforniaSM network.
What Services are Available?
Rapid Response teams will work with your company to
minimize the disruptions associated with job losses on
your business, workers, and community. Rapid Response
teams will meet with you to discuss your needs and
programs that can help avert layoffs, including:
• Incumbent worker training – a program designed
to assist employers in upgrading the skills of their
workers to maintain a quality workforce and avert the
need for layoffs.
• Customized training – a program that supports
training for new and existing employees to help
businesses stay competitive, productive, and
profitable, and help employees retain high-wage,
high-skilled jobs.
• Work Sharing - a program available to employers who
reduce employee hours and wages as an alternative
to layoffs. Affected employees are eligible to receive
a percentage of Unemployment Insurance benefits.
Employers can retain trained employees until
business conditions improve and avoid the expense of
recruiting, hiring, and training new employees.
Additionally, Rapid Response teams will work with
affected workers on-site to provide important
information and services that enhance re-employment
opportunities, including:
• Career counseling and job search assistance.
• Résumé preparation and interviewing skills
workshops.
• Unemployment Insurance.
• Information about education and training
opportunities.
Benefits of Rapid Response Services
Rapid Response activities provide multiple benefits to
your company, including:
• Lower Unemployment Insurance costs as workers are
re-employed more quickly.
• Higher productivity, better worker morale, and lower
absenteeism due to reduced stress.
• Positive community impact.
How to get started?
Contact your local America’s Job Center of CaliforniaSM
to learn more about Rapid Response services.
Rapid Response Services for Businesses
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