Los Angeles County Municipal Code Ch. 8.45 Commercial Tenant Protections

This Chapter shall be known as "Commercial Tenant Protections."

(Ord. 2022-0009 § 1, 2022.)

A.

The Board of Supervisors finds that the commercial rental debt owed by many businesses due to the impacts of the COVID- 19 pandemic in Los Angeles County is a major source of tension between commercial tenants and landlords; in many cases, smaller commercial tenants face pressure and desperation similar to that of residential tenants. Many small businesses face the challenge of trying to negotiate with uncooperative landlords due to the months of accumulated back rent owed.

B.

This unpaid rental debt owed by many small businesses, in light of the significant economic fallout from the COVID-19 pandemic, has exacerbated an already competitive commercial rental market in Los Angeles County. This creates an incentive for some landlords to engage in harassing behavior or to fail to make necessary repairs in order to pressure existing tenants to move so that new tenants can move in and landlords can raise rents.

C.

Accordingly, on March 4, 2020, the Board of Supervisors approved an Executive Order implementing a temporary Eviction Moratorium that offers protection against eviction to commercial tenants with fewer than one hundred (100) employees in unincorporated areas of Los Angeles County, with additional protections for small commercial tenants with less than ten (10) employees. On September 1, 2020, the protections under the Eviction Moratorium for commercial tenants became a baseline level of protection across the entire County that extended to all incorporated cities. Additionally, on February 23, 2021, the Board of Supervisors approved an amendment to the Eviction Moratorium that provided protections against harassment and retaliation to residential and commercial tenants who exercise their rights under the Eviction Moratorium. These protections have been critical in ensuring that thousands of small businesses did not have to close their doors for good due to the crippling financial impacts of the pandemic.

D.

The combined impact of unpaid commercial rental debt and a competitive commercial rental market creates an imbalance of bargaining power between landlords and tenants, which has resulted in many small commercial tenants being unwilling or unable to assert their legal rights under the County's Eviction Moratorium. Furthermore, when the Eviction Moratorium is eventually lifted, commercial tenants will lose protections that have been paramount in maintaining the stability, security, and quality of the small businesses that are the backbone of many communities across in the County of Los Angeles.

E.

The purposes of this Chapter are to deter harassing behavior by landlords, to encourage landlords to uphold their responsibility to provide safe and suitable commercial rental properties, and to give the County of Los Angeles legal recourse where small commercial tenants are subjected to harassing behavior by landlords.

(Ord. 2022-0009 § 1, 2022.)

For purposes of this Chapter, the following definitions shall apply:

A.

"Board" means the County of Los Angeles Board of Supervisors.

B.

"Code" means the Los Angeles County Code.

C.

"Commercial Property" means a Commercial Unit and the land on which it and other buildings and common areas are located, including, parking facilities, streets, alleyways, stairwells, yard, roofs, and elevators, and that is not a dwelling unit, as defined in Chapter 8.52 of the County Code, provided for rent by the Landlord.

D.

"Commercial Unit" means any part, portion, or unit thereof, and any related facilities, space, or service, that is rented or offered for rent for commercial uses only, not residential use, on the Commercial Property.

E.

"County" means the County of Los Angeles.

F.

"Landlord" means an owner, lessor or sublessor (including any person, firm, corporation, partnership, or other entity) of Commercial Property provided for commercial rental purposes.

G.

"Rent" means the consideration paid for the commercial use or occupancy of a Commercial Unit on Commercial Property.

H.

"Rental Agreement" means a lease or other oral or written agreement between a Landlord and tenant establishing the terms and conditions of the Tenancy.

I.

"State" means the State of California.

J.

"Tenancy" means the legal right of a Tenant or any other original occupant who took possession of Commercial Property for the use or occupancy of a Commercial Unit, subject to the terms of a Rental Agreement. This includes a lease or a sublease.

K.

"Tenant" means a renter of Commercial Property, as defined in subdivision (c) of section 1162 of the California Code of Civil Procedure, for commercial purposes, lessee, subtenant, and sublessee that has its principal offices in the County and meets all of the following criteria:

The Tenant rents a Commercial Unit in the County that is not a dwelling unit, as defined in California Civil Code section 1940, or a mobilehome, as defined in California Civil Code section 798.3.

The Tenant employs no more than nine (9) employees.

The Tenant operates an independently owned and operated business or nonprofit organization.

(Ord. 2022-0009 § 1, 2022.)

The following Tenants are excluded from the protections of this Chapter:

A.

Tenants that are multi-national or publicly-traded.

B.

Tenants of Commercial Property located at airports within the County.

(Ord. 2022-0009 § 1, 2022.)

No Landlord, or any person, acting as a principal or agent, or any contractor, subcontractor or employee acting on the Landlord's behalf or direction, with respect to Commercial Property used as a Commercial Unit under any Rental Agreement or other Tenancy, however created, shall do any of the following:

A.

Interrupt, terminate, or fail to provide all services required by the Rental Agreement or under federal, State, County, or local health or safety laws.

B.

Take any of the following actions in bad faith:

Fail to perform repairs and maintenance required by the Rental Agreement or by federal, State, or local laws;

Fail to exercise due diligence in completing repairs and maintenance once undertaken;

Fail to follow appropriate industry repair, containment, or remediation protocols designed to minimize exposure to noise, dust, lead, paint, mold, asbestos, or other building materials with potentially harmful health impacts;

Conduct elective renovation or construction of Commercial Property for the purpose of harassing Tenant;

Refuse to acknowledge or accept receipt of a Tenant's lawful Rent payment as set forth in the Rental Agreement, by usual practice of the parties, or in a notice to pay Rent or quit;

Refuse to cash or process a Rent check or other form of acceptable Rent payment for over thirty (30) days after it is tendered;

Fail to maintain a current address for delivery of Rent payments;

Violate a Tenant's right to privacy, without limitation, by requesting information regarding residence or citizenship status, protected class status, or social security number, except as required by law or in the case of a social security number, for the purpose of obtaining information for the qualifications for a Tenancy;

Release information protected by the Tenant's right to privacy, except as required or authorized by law; or

Request or demand an unreasonable amount of information from Tenant in response to a request for reasonable accommodation.

C.

Threaten the Tenant, by word or gesture, with physical harm, or abuse Tenant with words, either orally or in writing, which are offensive and inherently likely to provoke an immediate violent reaction. This includes words used during in-person conversations, through social media postings or messages, or other communications.

D.

Influence or attempt to influence a Tenant to vacate Commercial Property through fraud, intimidation or coercion, which shall include threatening to report a Tenant or Tenant's employees to the United States Department of Homeland Security or any other governmental or law enforcement agency.

E.

Violate any law which prohibits discrimination based on race, gender, sexual preference, sexual orientation, ethnic background, nationality, religion, age, parenthood, marriage, pregnancy, disability, or Human Immunodeficiency Virus (HIV)/Acquired Immune Deficiency Syndrome (AIDS).

F.

Take action to terminate any Tenancy including service of any notice to quit or notice to bring any action to recover possession of the Commercial Unit based upon facts which the Landlord has no reasonable cause to believe to be true or upon a legal theory which is untenable under the facts known to the Landlord. No Landlord shall be liable under this subsection for bringing an action to recover possession unless and until the Tenant has obtained a favorable termination of that action.

G.

Remove from the Commercial Unit furnishings, personal property, or any other items without the prior written consent of a Tenant, except when done pursuant to enforcement of a legal termination of Tenancy or as otherwise authorized by federal, State, or local law.

H.

Offer payments to:

A Tenant to vacate more than once in six (6) months, after the Tenant has notified the Landlord in writing that the Tenant does not desire to receive further offers of payments to vacate.

Attempt to coerce a Tenant to vacate accompanied with threats or intimidation. This shall not include settlement offers in pending eviction actions made in good faith and not accompanied by threats or intimidation.

I.

Commit repeated acts or omissions of such significance as to substantially interfere with or disturb the comfort, repose, peace, or quiet of any person lawfully entitled to occupancy of such Commercial Unit and that cause, are likely to cause, or are intended to cause any person lawfully entitled to occupancy of a Commercial Unit to vacate such Commercial Unit or to surrender or waive any rights in relation to such occupancy.

(Ord. 2022-0009 § 1, 2022.)

Nothing in this Chapter shall be construed as to prevent the lawful eviction of a Tenant by appropriate legal means.

(Ord. 2022-0009 § 1, 2022.)

A.

Civil Remedies. Any Tenant, or any other person or entity acting on behalf of the Tenant who will fairly and adequately represent the Tenant's interests, including the County, is authorized to bring a civil action and/or proceeding in a court of competent jurisdiction for violation of this Chapter, for civil penalties, injunctive, declaratory and other equitable relief, restitution and reasonable attorneys' fees and costs and may take such other steps as necessary to enforce this Chapter. No administrative remedy need be exhausted prior to filing suit to enforce this Chapter. The court may award reasonable attorneys' fees and costs to a Landlord who prevails in any such action if the court determines that the Tenant's action was frivolous.

B.

Civil Penalty. Any person violating any of the provisions, or failing to comply with any of the requirements of this Chapter, may be liable for a civil penalty of no less than Two Thousand Dollars ($2,000), per violation, and no more than Five Thousand Dollars ($5,000), per violation, at the discretion of the court. If the aggrieved Tenant is sixty-two (62) years or older or disabled, the court may award an additional civil penalty of up to Five Thousand Dollars ($5,000) per violation, at the discretion of the court.

C.

Criminal Penalty. Any person violating any of the provisions or failing to comply with any of the requirements of this Chapter, shall be guilty of a misdemeanor and punished by a fine of not more than One Thousand Dollars ($1,000), or by imprisonment in the County jail for a period of not more than six (6) months, or by both.

D.

Each violation of any provision of this Chapter, and each day during which any such violation is committed, permitted or continued, shall constitute a separate offense.

E.

The above remedies are not exclusive and do not preclude the County or any Tenant from seeking other remedies or penalties provided by applicable law.

(Ord. 2022-0009 § 1, 2022.)

Any waiver of rights under this Chapter shall be void as contrary to public policy.

(Ord. 2022-0009 § 1, 2022.)

If any provision of this Chapter or the application thereof to any person, property, or circumstance, is held invalid, such invalidity shall not affect other provisions or applications of this Chapter that can be given effect without the invalid provision(s) or application, and to this end, the provisions of this Chapter are declared to be severable.

(Ord. 2022-0009 § 1, 2022.)