On May 22, the California Senate Judiciary Committee voted to approve SB 939. Among other things, SB 939 would allow certain commercial tenants negatively affected by the COVID-19 crisis to require landlords to renegotiate and/or terminate their leases. Among other things, the bill would allow certain tenants to defer paying rent for 12 months after the end of the current state of emergency in California. The bill now goes to the Senate Appropriations Committee for approval.
As the legislative analysis notes, there have been some amendments to the original legislation. However, these amendments do not adequately address the main concerns, and Nareit will continue to work with other affected stakeholder to oppose the legislation. On May 15, Nareit joined this coalition letter to members of the Senate Judiciary Committee in opposition to SB 939.
(Contact: Dara Bernstein dbernstein@nareit.com)