On May 13, 2020, a bill numbered SB 939 became a lighting-rod in California. It proposed that certain Covid-impacted tenants could terminate their leases. Authored by Senator Wiener, SB 939 gained momentum when it passed the Judiciary Committee by a vote of 5-1 in favor of the bill. It then moved to the Appropriations Committee [...]
SB 939 was recently amended to provide additional eviction protections for Covid-impacted tenants in all industries. To be clear, this provision is not limited to restaurants, bars, places of entertainment, etc. This updated section of SB 939 provides, in part: 12-Month Repayment Period: “Covid-impacted” tenants have 12 months after the state of emergency ends to [...]
On May 13, SB 939 became a lightning rod in California – if passed, it would give certain Covid-impacted tenants a right to terminate their commercial leases. It initially applied to all California small businesses. However, SB 939 was just amended and the termination right was narrowed substantially. SB 939's Termination Right Now Applies To [...]
SB 939 provides certain Covid-impacted tenants with the right to terminate their leases if they experience 40% monthly revenue declines (for details on the bill, see California Proposes Lease Termination Right For Covid-Impacted Tenants). Below is an update on the current status of SB 939. SB 939 Approved By Judiciary Committee By 5-1 Vote: Last [...]
Under a proposed California law, certain tenants that experience declines in revenue as a result of Covid-19 can terminate their lease if their landlords do not agree to a rent reduction. This Senate Bill 939 (SB 939) has been introduced in the California Senate, but has not been enacted. Does this termination right in SB [...]
Some tenants are asserting defenses to the obligation to pay rent, particularly where their businesses are closed entirely because of the Covid-19 pandemic. However, if a tenant does not pay rent, it may lose the ability to exercise an option to extend, it may lose future rent abatement, or there could be other repercussions. Under [...]
Many businesses did not pay rent or paid partial rent in April 2020, because of the COVID-19 pandemic. Under certain circumstances, a Lessee that is not complying with the AIR CRE Leases can lose the right to exercise its Option To Extend the Lease term. If a Lessee failed to pay rent for April 2020, [...]
Many businesses in California are struggling to pay April 2020 rent as a result of the impact of COVID-19. Under the AIR CRE Leases, is Lessor entitled to late charges and interest if Rent is not paid on time? Short Answer: Yes. A late charge of 10% (or $100, whichever is greater) is due if [...]
In light of COVID-19 closures, many Lessees are requesting rent relief from their Lessors, in the form of deferral or abatement. Lessors are more curious than ever to understand the financial situation of Lessees. Under the AIR CRE Leases, is Lessee required to provide financial statements upon Lessor’s demand? Short Answer: Yes, but only in [...]
Publisher’s Note: We are experiencing difficult times in California with the Coronavirus. I hope all is well with you and your loved ones, and our best wishes in the recovery of any of your businesses that have been impacted. Many California businesses have temporarily closed as a result of COVID-19. Does the closure of a [...]