The proposed legislation could require lessors to defer CA rent obligations for a year or longer and allow tenants to negate the lease and walk away with no responsibilities for tenant improvements.
A California Commercial Real Estate Legislative alert went out last Friday from AIR about SB 939, a COVID-19 related measure.
The proposed legislation could require lessors to defer CA rent obligations for more than a year or allow the tenant to negate the lease and walk away with no responsibilities for tenant improvements.
If passed the measure would be in effect for 22 months from March 2020 or for two months after the end of the state of emergency, whichever is later.
As mentioned in the notice the proposal mysteriously (or as they say unfairly) doesn’t apply to any publicly traded companies or one that is owned or affiliated with a publicly traded company (franchisee).
Included in the notice are better potential options like the proposal put forth by Toni Atkins.
For more information, read the full bill or to send a letter opposing SB 939 CLICK HERE.