Legislation Imposing Moratorium on Commercial Evictions Fails to Pass

San Francisco

Senate Bill 939 (“SB 939”), which was the subject of our June 17th Update, would have imposed significant statewide restrictions on commercial evictions and allowed tenants to renegotiate or terminate their lease. The Legislation failed to advance from the Senate Appropriations Committee yesterday, and will not move forward this session. In response, SB 939 sponsors, Senators Scott Wiener and Lena Gonzalez, issued a press release urging the Legislature and Governor to take steps to help small businesses and nonprofits.

It remains to be seen whether similar provisions are introduced in the future, but those efforts would be met with similar concerns about the serious economic impacts of upending commercial leases. We will continue to follow legislation aimed at the economic fallout of COVID-19.

 

Authored by Reuben, Junius & Rose, LLP Attorney Jody Knight.

The issues discussed in this update are not intended to be legal advice and no attorney-client relationship is established with the recipient.  Readers should consult with legal counsel before relying on any of the information contained herein.  Reuben, Junius & Rose, LLP is a full service real estate law firm.  We specialize in land use, development and entitlement law.  We also provide a wide range of transactional services, including leasing, acquisitions and sales, formation of limited liability companies and other entities, lending/workout assistance, subdivision and condominium work.