Temporary Moratorium on Residential and Commercial Evictions
On March 18, 2020 the West Sacramento City Council adopted an ordinance establishing a temporary moratorium on eviction of residential and commercial business tenants who suffer substantial wage or business losses due to the implementation measures to prevent the spread of the coronavirus disease. This ordinance is an emergency measure that was set to expire May 31, 2020 but, under the Governor's Executive Order N-66-20 issued on May 29, 2020, has been extended to be in effect through July 28, 2020.
FAQ and Forms
On April 8, 2020, in an effort to align the West Sacramento ordinance with the Governor’s Executive Order, the City Council approved two specific amendments to the local ordinance.
The first amendment addressed the length of time that tenants have to notify a landlord of their inability to pay rent. The City’s ordinance originally required tenants to provide notification before the rent was due; which was contrary to Governor’s Executive Order N-37-20. The City’s ordinance was amended to allow tenants up to 7 days after rent is due to provide notice to the landlord.
The second amendment addressed the reasons tenants can provide to their landlord for the delay in rent payment. The City’s ordinance includes specific reasons justifying delayed rent payments, all of which mirror the Governor’s Executive Order. However, the recent Executive Order also added “including but not limited to” language, allowing tenants to provide additional justifications. The City’s Ordinance was amended accordingly.
Other Housing News
Governor Newsom has announced that four of the five big banks — Citigroup, JPMorgan Chase, U.S. Bank and Wells Fargo — along with almost 200 state-chartered banks and credit unions, have agreed to put off collecting mortgage payments for up to 90 days from borrowers who can document they’ve been affected by the crisis. Read the press release.
The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac (the Enterprises) to suspend foreclosures and evictions for at least 60 days due to the coronavirus national emergency. Additionally, if you experience financial hardship due to the coronavirus pandemic, you have a right to request a forbearance for up to 180 days. You also have the right to request one extension for another up to 180 days.
Fannie Mae offers help navigating the broader financial effects of this national emergency to homeowners with a Fannie Mae-owned mortgage through its Disaster Response Network. Learn more: www.KnowYourOptions.com/loanlookup.
Freddie Mac has helped more than 1.3 million financially troubled borrowers avoid foreclosure since 2009. For more information on Freddie Mac mortgage relief, visit My Home by Freddie Mac.
The U.S. Department of Housing and Urban Development (HUD) authorized the Federal Housing Administration (FHA) to implement an immediate foreclosure and eviction moratorium for single family homeowners with FHA-insured mortgages for the next 60 days. These moratoriums are part of the continued efforts to address impacts to the financial well-being of America’s individuals, families, and businesses caused by Coronavirus (COVID-19). Read more: https://wsac.city/33LDwJy
Covid-19 Aid, Relief, and Economic Security (CARES) Act
- SBA Express Bridge Loans – Allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. Small businesses waiting on approval for a Disaster Loan may be able to access this Bridge Loan while waiting on a decision.
- Existing 7a SBA Loans: Borrowers may request deferral up to 3 months from their lender for those with a traditional 7a SBA Loan, with another possible extension to 6 months. The SBA has authorized lenders to take this action. Borrowers need to contact their lender to negotiate. Important: this is not an automatic deferral.
- US Chamber Guide to SBA Loans
- Paycheck Protection Program: Emergency small business loans that may be forgiven if borrowers maintain their payrolls during the crisis or restore after. Loans up to $10M, depending on your monthly payroll. List of vendors providing these loans TBA. These loans are funded through the CARE Act.
- U.S. Chamber Summary of Paycheck Protection Program Loans
- Local SBA lenders: http://www.westsacramentochamber.com/sba-lender-banks