City Should Assume Liability For Unpaid Rents
April 23, 2020
I sent the following to Culver City's City Manager John Nachbar regarding his Public Order dated March 27, 2020, which in essence puts the onerous on landlords to assume a financial burden if a tenant is unable to pay rent due to the Covid-19 pandemic.
Dear Mr. Nachbar,
I read your Public Order dated March 27, 2020 and I understand the need for tenant protection during this pandemic and for the most part I support the Order. However, there is one item in the Order I believe needs to be either modified or amended, it appears on page 3 of the Order and is indicated as number 2 of the orders within the Public Order. Order number 2 states that a tenant will have up to six months to repay any back rent due. This is essentially a loan that the City is forcing landlords to float interest free; placing additional financial burden on a landlord. Where is the relief for the landlords that must still pay the note to the bank or other financial institution? Is the City working with the mortgage lenders to provide this relief? Or is this one more kick-the-can-down-the-road measure and where the can lies, so be it? What happens if a landlord cannot pay the bank because of this Order? Is the City going to offer assistance? And if so, will that be interest free?
I am sympathetic to and have empathy for those that have fallen or may fall victim to this crisis. But I do not think it fair that another individual, namely landlords, be victimized. This is where the government is supposed to kick in, be it federal, state, county or local. And since this Public Order is local, the City of Culver City should assume the liability and burden of the orders within.
I look forward to your response.