Issue:
Oppose SB 939
| Right now, there is legislation moving through the California Senate that would devastate the commercial real estate industry, upend the landlord-tenant relationship and lead to a commercial mortgage crisis throughout the state. We need your help to voice opposition of this harmful legislation today. |
| Send a letter to your state senator |
| SB 939, sponsored by Senator Scott Weiner (D-San Francisco), would allow commercial tenants to pay no rent for an indeterminate amount of time. It enables ALL commercial tenants to refuse to pay rent from March 4, 2020, until three months after the California’s COVID-19 emergency order is lifted. The tenant then has an additional 12 months to make up the unpaid rent after this period of rent deferment is lifted.A property owner is still obligated to make mortgage and debt service payments despite having to forgo rental income during this indeterminate period, but is provided no relief under the legislation. It also allows some tenants, such as restaurants, to renegotiate any existing lease; however, if the terms are unacceptable, the tenant may immediately terminate the lease in its entirety and simply walk away. This is a clear violation of the Clause of the U.S. Constitution.SB 939 will prolong the state’s desperately needed economic recovery by replacing a short-term loss in business revenue with a long-term commercial mortgage crisis.This misguided legislation must be stopped, and NAIOP needs you to contact your state Senator TODAY to oppose SB 939. We’ve provided a letter for you to customize and send to your state senator. You can submit is electronically, or print it on your company letterhead to email directly. |