AN URGENCY ORDINANCE OF THE STATE CALIFORNIA, ENACTING A TEMPORARY EMERGENCY MORATORIUM ON FORECLOSURES AND EVICTIONS FOR RESIDENTIAL AND COMMERCIAL PROPERTIES DUE TO ECONOMIC HARDSHIP CRISIS, AND DECLARING THE URGENCY THEREOF TO TAKE EFFECT IMMEDIATELY
WHEREAS, on October 9, 2025, the Governor will declare a state emergency due to widespread economic hardship resulting from the Federal Government Shutdown, out of control inflation, job losses, natural disasters, among other legal issues which has caused substantial income decreases, increased medical expenses, and financial instability for residents and businesses throughout California;
WHEREAS, this emergency has led to an unprecedented risk of foreclosures and evictions, threatening public health, safety, and welfare by increasing homelessness, straining social services, and destabilizing communities;
WHEREAS, California Government Code sections 36934 and 65858 authorize the Governor] to adopt urgency ordinances or executive orders to address immediate threats to public peace, health, and safety, which shall take effect immediately and require a four-fifths vote for passage;
WHEREAS, Executive Order N-28-20 (and subsequent similar orders) has historically suspended state laws preempting local restrictions on evictions and foreclosures related to financial hardships from emergencies, allowing for targeted moratoriums;
WHEREAS, this moratorium is necessary to provide immediate relief to affected tenants, homeowners, and borrowers while preserving their obligations to repay arrears post-emergency, without forgiving underlying debts;
NOW, THEREFORE, THE GOVERNOR OF CALIFORNIA DOES ORDAIN AS FOLLOWS:
SECTION 1. FINDINGS AND DECLARATIONS
The Governor] finds and declares that:
(a) The ongoing emergency Federal Shutdown has resulted in widespread inability to pay rent, mortgages, or other housing-related obligations due to factors including, but not limited to, job loss, reduced hours, illness, quarantine, childcare needs, or increased medical expenses.
(b) Without immediate action, foreclosures and evictions will exacerbate the crisis, leading to mass displacement and public health risks.
(c) This ordinance balances protections for tenants, homeowners, and small landlords by prohibiting immediate actions while requiring documentation of hardship and structured repayment.
(d) This is an urgency measure pursuant to Government Code ยง 36934, requiring immediate implementation to protect public welfare.
SECTION 2. DEFINITIONS
For purposes of this ordinance:
(a) Covered Property means any residential or commercial real property located within California, including single-family homes, multi-family units, apartments, mobile homes, and commercial spaces, but excluding properties owned by entities with 10 or more units unless otherwise specified.
(b) Financial Hardship means a substantial decrease in household income (at least 20%), out-of-pocket medical expenses, or other direct costs attributable to the [emergency], as documented by the tenant/homeowner/borrower.
(c) Landlord includes any owner, lessor, or agent responsible for rental properties.
(d) Lender includes any mortgage servicer, financial institution, or entity initiating foreclosure proceedings.
(e) Moratorium Period means from the effective date of this ordinance until June 1, 2026, unless extended or terminated earlier by the Governor.
SECTION 3. MORATORIUM ON EVICTIONS
(a) Prohibition: During the Moratorium Period, no Landlord shall evict or attempt to evict any tenant of a Covered Property for:
- Nonpayment of rent if the tenant demonstrates Financial Hardship; or
- No-fault reasons, unless necessary for health or safety. (b) Notice and Documentation: Tenants must provide written notice to the Landlord within seven (7) days of the rent due date, declaring Financial Hardship, and provide supporting documentation (e.g., pay stubs, medical bills, termination letters) within thirty (30) days. Failure to provide timely notice waives the protection. (c) Partial Payments: Tenants shall pay any portion of rent they are reasonably able to pay during the Moratorium Period. (d) Affirmative Defense: Noncompliance with this section shall be an affirmative defense in any unlawful detainer action. (e) No Fees: Landlords shall not charge or collect late fees, interest, or collection fees on rent due during the Moratorium Period for qualifying tenants. fortralaw.com +1
SECTION 4. MORATORIUM ON FORECLOSURES
(a) Prohibition: During the Moratorium Period, no Lender shall initiate, advance, or complete any foreclosure action (judicial or non-judicial) on a Covered Property if the borrower demonstrates Financial Hardship.
(b) Notice and Documentation: Borrowers must provide written notice to the Lender within seven (7) days of the missed payment, declaring Financial Hardship, and provide supporting documentation within thirty (30) days.
(c) Tolling: All statutes of limitations and redemption periods related to foreclosure actions are tolled during the Moratorium Period.
(d) No Fees: Lenders shall not charge or collect late fees, interest accruals beyond the principal, or foreclosure-related fees during the Moratorium Period for qualifying borrowers.
SECTION 5. REPAYMENT OBLIGATIONS
(a) This ordinance does not waive or forgive any rent, mortgage payments, fees, or other obligations accrued during the Moratorium Period.
(b) Upon expiration of the Moratorium Period, affected tenants and borrowers must repay arrears in equal monthly installments over a period not to exceed six (6) months, beginning no earlier than thirty (30) days after expiration.
(c) Landlords and Lenders may negotiate alternative repayment plans in good faith.
SECTION 6. UTILITY AND OTHER PROTECTIONS
(a) No utility provider shall disconnect service to a Covered Property for nonpayment during the Moratorium Period if the account holder demonstrates Financial Hardship.
(b) This section extends to prohibit shut-offs for electric, water, gas, and fiber services.
SECTION 7. ENFORCEMENT AND APPLICABILITY
(a) Violations of this ordinance shall be subject to civil penalties of up to $1,000 per violation, enforceable by the City Attorney/County Counsel/Attorney General.
(b) This ordinance applies to all actions initiated on or after the effective date, regardless of when the underlying obligation arose.
(c) Nothing in this ordinance limits federal protections (e.g., CARES Act requirements for 30-day notices).
SECTION 8. SEVERABILITY
If any provision of this ordinance is held invalid, the remainder shall remain in full force and effect.
SECTION 9. URGENCY
This ordinance is an urgency measure necessary for the immediate preservation of the public peace, health, and safety, and shall take effect immediately upon adoption. A four-fifths vote of the [City Council/etc.] is required for passage.
PASSED AND ADOPTED this October 9, 2025
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