Updated: Jun 1
Originally issued as a statewide moratorium on business & nonprofit evictions, California Senate Bill 939 has been amended to give small businesses the ability to trigger lease renegotiations with landlords if they've lost more than 40% of revenue due to Coronavirus restrictions.
Senator Scott Weiner said the bill focuses on the hospitality sector.
Landlord advocates stated the move could cause financial collapse in the investment sector.
If landlord's lose the ability to pay their mortgage, foreclosures could cripple asset prices across the state.
The reality is, while property owners shouldn't be left to default on their loans, if all of their tenants go bankrupt whilst paying rent during the lockdown, landlords will be left empty-handed anyways. A middle-ground negotiation may be the only option.