BEVERLY HILLS—On June 19, the Beverly Hills City Council amended their March eviction moratorium, now requiring businesses to start paying rent as early as August 1. With new regulations, small businesses can no longer claim that they cannot pay rent due to COVID-19.
According to the city of Beverly Hills website, parties are now required to meet and “make a good faith attempt to develop an agreement. Any agreement worked out between the parties will take precedence over this ordinance and may extend the period for repayment.”
The landlord is required to send any commercial tenants who have not agreed to repayment a notice by the notification date of July 10.
If the commercial tenant fails to contact the landlord in response to the notice or otherwise fails to meet with the landlord, the Repayment Date shall be shortened to October 1, 2020. If a landlord fails to to send the notice or otherwise fails to meet with the commercial tenant, then the Repayment Date shall be extended to July 1, 2021.
All repayments for small business including rent, interest and late fees should be paid by January 1, 2021.
The city of Beverly Hills notes larger businesses are classified as having more than 100 employees, have an average annual gross of more than $15 million over the past three years and has business operations in three or more countries including the United States.
The Rent Recommencement Day and Amnesty Day for large businesses is set for August 1, 2020. Due to this, rent will recommence and the amnesty period of rent ends. If all past due rent is paid by this date, no interest or late fees will accrue.
The repayment date is scheduled for September 1, 2020 for larger businesses, all rent, late fees and interest must be paid by this date.
The ordinance does not apply to any commercial tenant that is a publicly traded entity, an entity that is listed on the Fortune 1000, or any entity that employs more than 500 employees or any commercial tenant that is owned by another entity that is publicly traded, listed on the Fortune 1000 or combined with the commercial tenant and other subsidiaries employs more than 500 employees.