In a move that commercial landlords are warning will bring about a financial collapse in the nation’s most populous state, California lawmakers are working on a bill that would essentially force landlords to renegotiate leases with commercial tenants, or face the prospect of these tenants walking away without facing consequences.
California’s Senate Judiciary Committee has advanced SB 939 to allow qualifying small businesses that have been impacted by the COVID-19 shutdown to renegotiate and modify their leases within a thirty-day time period. If both sides can’t come to a deal during this time, the tenant can break the lease and walk away without facing a penalty. The bill would make it impossible for commercial landlords to evict businesses or NGOs from their premises for failure to pay rent.
Liberal proponents of the bill are praising it as the ideal solution for restaurants, bars, and hotels which have been devastated by the economic shutdown they themselves advocated for. They hope that it will boost small business owners who even now continue to face draconian restrictions as the economy reopens.
No-one debates that the shutdown has hit the hospitality industry particularly hard. However, multiple business organizations are warning that the bill would bring about financial collapse, and it’s not hard to see why. Many landlords would not be able to pay mortgages on their commercial properties if businesses don’t pay the agreed-upon rent, leading to commercial properties being seized by banks and other lenders.
Even landlords who are able to get by with reduced rental payments would not have the needed funds to fix and maintain their buildings. Tenants who are able to pay their current lease would use the bill as an excuse to reduce rental costs. Furthermore, the fact that the bill would remain in place until the end of 2021 would almost certainly ensure that no one would invest in commercial California real estate.
As one business organization aptly noted, there are alternatives to SB 939. California’s lawmakers could consider less forceful terms that would meet the needs of tenants and landlords alike. What is more, there are many commercial landlords in the state who understand their business tenants are facing a unique situation and are willing to work with them rather than automatically evict them. Sadly, it seems that the state’s liberal lawmakers care more about virtue-signaling than the needs of the state’s business community.
SB 939 is fundamentally unconstitutional and likely to cause the state’s economy to tank even further than it already has — and we’re not even counting the damage done because of the pandemic.
THAT’S TOO FUCKING BAD. IF THESE ASSHOLES KEEP VOTING ASSHOLE COCKROACHES IN OFFICE. THEN IT’S THEIR OWN FAULT. YOU DON’T SEE THIS HAPPENING IN REPUBLICAN RUN STATES DO YOU? THEY ARE MORONS THAT VOTE THESE COCKROACHES IN OVER AND OVER, WHAT DID THEY THINK WAS GOING TO HAPPEN? THEY VOTED FOR IT, THEY GOT IT. NO FEDERAL BAIL-OUT EITHER. THEY FUCK UP THEIR OWN BEAUTIFUL STATE AND EXPECT THE U.S. TAXPAYER TO BAIL THEM OUT. SCREW EM.
Dead on target, well said!
To bad we can’t build a wall around the most Communist run state in America. Let’em suffer!!!!!!!!!!!!!!!
As someone who grew up in California in the 60’s and 70’s I know how beautiful the state use to be. And it breaks my heart to see what it’s turned into. I totally agree with all of you. Let them rot, maybe Mexico will take the state off of our hands.
This is a lose, lose situation. If a tenant can’t pay his/her rent, then they will try to renegotiate with the landlord, if they wish to stay where they are located. If no terms can be met, then the tenant has to leave. That’s how it works. The State of California has no right to dictate terms to commercial building owners, and should stay completely out of this area of business law. This is enforced breach of contract, by the State, which is a violation of law and an infringement of contract .
I agree,if the citizens don’t want to kick the bastards out and put Republicans in then I say let them rot and to hell with that ugly stinken state.
Agreed…
We cashed out last year and moved to the great state of TN.
Now, I get to spend my hard-earned pension dollars here and Ca gets none of it.
That’s what I call “wealth distribution.
Enjoying the $1.69 gas too
Personally, I wish California would just fall into the Pacific Ocean !!!!!!!!!!!!!
Must be nice to sit in an Ivory Tower and Dictate to the Equally Stupid people that Voted him in office of which I was NOT one !!
This “bill” is not about mitigating financial pressures on small businesses. It is about property confiscation. The bill’s authors are paid shills working for the shadow industry (banking) intent on acquiring properties through the demonic act of foreclosure. When landlords cannot pay the mortgages because their tenants cannot pay the rents, the banks win. And win big. The “lawmakers” are traitors and should be “processed” as such.
The Democrats are pushing for the landlords to file for bankruptcy due to there nonpayment to there lenders so that the Democratic Party could get China through backdoor channels to purchase those properties at the foreclosure cost. The Democratic Party has been letting China buy America piece by piece for decades hence the assistance of COVID-19 and the push for Socialism/ Communism so that China can call there nass amounts of properties home to resolve there population problem. If you haven’t noticed yet how the Democratic Party with all of this going on sides with China. The last Administration in 2910 made a multimillion dollar deal with the Laboratory near Wuhan.
WOW! . . . sounds like we need to STOCK UP on CHEEEEEAP California Real Estate. It’ll be TOO expensive to live there, that the PRICES will drop to NEAR ZERO – THERE are WAY better states to live in than CRAPAFORNIA. One Enlightened Patriot. Team Trump and his allies 2020.
please include washington and oregon within that wall. too bad we can’t physically move new york as well. all shit holes