PHOENIX — Saying some landlords are weighing evictions, Gov. Doug Ducey on Monday ordered judges in the state to immediately suspend evictions for commercial tenants affected by the pandemic.
The order says commercial landlords must consider deferring rent payments for those who cannot pay their bills due to the financial hardships caused by COVID-19. And it encourages landlords to work with tenants to waive late fees, penalties and interest due to late payments as well as develop repayment plans.
But the hammer is the governor’s directive to the courts that “a commercial eviction action including lock out, notice to vacate, or any other attempt to inhibit the operations of a business shall be temporarily suspended for tenants unable to pay rent due to financial hardship caused by the COVID-19 pandemic.â€
The only exception in Ducey's order is in cases where a judge, at the request of one of the parties, determines that staying any eviction action is "contrary to the interest of justice.'' His order does not spell out what that includes.
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Ducey’s order, which covers small businesses up to 500 employees, is effective through the end of May.
His directive comes nearly two weeks after a similar executive order dealing with residential rentals. But there is a crucial difference.
In that order, Ducey barred police officers and constables — arguably members of the executive branch that he heads — from carrying out eviction orders under certain circumstances.
These orders on residential evictions involve people who are required to be quarantined based on a diagnosis of COVID-19 or have been ordered to self-quarantine by a licensed medical professional based on symptoms. Evictions also can be avoided if someone else living in the home is diagnosed with the virus or has some condition “that makes them more at risk for COVID-19 than the average person.â€
And there are financial triggers, with evictions precluded for anyone who suffers a “substantial loss of income†linked to the virus.
This order, by contrast, directs judges who are members of the judicial branch of government on what they may and may not do.
Asked where Ducey gets that power, a gubernatorial press aide referred solely to the state law that deals with emergencies. But he did not cite any specific provision giving the governor power over the judiciary.
There are some parallels with the earlier order on residential evictions. This new order does link a commercial tenant’s financial problems to COVID-19.
But there are not specific triggers. Instead, it says that a tenant who cannot pay must first notify the landlord or property owner in writing and furnish “any available supporting documentation of their inability to pay rent†due to a temporary financial situation.
Tenants also have to acknowledge that the lease contract remains in effect.
It does spell out that tenants who get any form of public financial assistance must apply “a portion†to any current or past-due rents. That includes a portion of the $2 trillion federal relief package that allows businesses with fewer than 500 employees to get Small Business Administration loans not only for payroll but also rent, utilities and mortgage interest.
But the order spells out that landlords cannot require that tenants give them any specific percentage of the outside aide they get.
Farrell Quinlan, executive director of the ÃÛèÖÖ±²¥ Building Owners and Managers Association, said the order is, in many ways, not a surprise. He said the governor has been working for some time now with his organization as well as other groups that represent various segments of the commercial real estate industry.
And he said that much of what the governor wants already is being addressed.
“There’s a lot of forbearance going on out there,†Quinlan said. “And there’s a lot of working with our tenants.â€
But what the order does not defer, Quinlan said, are the financial obligations of the landlords.
“Are the banks and the lenders that we have to answer to for our bills, are they going to show a similar forbearance with our obligations?†he asked.
In his new order, the governor says lenders that have provided commercial mortgage loans “shall consider†providing an opportunity for borrowers to defer those payments.
Photos for April 1: ÃÛèÖÖ±²¥ gets by during Coronavirus Pandemic
ÃÛèÖÖ±²¥, coronavirus

A dinosaur statue over the doors of MATS Dojo at 5929 E. 22nd St., sports an athletic cup for a face mask in the second week of COVID-19 restrictions, March 31, 2020, ÃÛèÖÖ±²¥, Ariz.
ÃÛèÖÖ±²¥, coronavirus

A pair of protestors use their car to block west bound traffic on Silverlake to let other protestors make the left turn in into the Pima County Adult Detention Complex during a vehicle based demonstration by #FreeThemAll for the release of prisoners in light of the COVID-19 pandemic, March 31, 2020, ÃÛèÖÖ±²¥, Ariz.
ÃÛèÖÖ±²¥, coronavirus

Raj Paudel hands a bag of food to a customer at Govinda's to-go-tent located at 711 E. Blacklidge Drive, on April 1, 2020.
ÃÛèÖÖ±²¥, coronavirus

The biggest hit to employment in ÃÛèÖÖ±²¥ came in the leisure and hospitality industry — hotels, bars, restaurants and places of amusement — which alone shed 5,200 jobs.
ÃÛèÖÖ±²¥, coronavirus

John Aldecoa tapes up a banner outside his restaurant, Brother John's, as he and his staff get ready to serve again after being closed since the COVID-19 restrictions were put in place two weeks ago, April 1, 2020, ÃÛèÖÖ±²¥, Ariz.
ÃÛèÖÖ±²¥, coronavirus

Michael Olivas, right, helps Arnold Vizcaino, City of ÃÛèÖÖ±²¥ Parks and Recreation employees, lock up swings at Gene C. Reid Park, 900 S. Randolph Way, in ÃÛèÖÖ±²¥, Ariz., on April 1, 2020. The City of ÃÛèÖÖ±²¥ Parks and Recreation employees are going around to all ÃÛèÖÖ±²¥ parks to close all ramadas, gazebos, playgrounds, outdoor fitness equipment, all sports courts and fields, horseshoe pits and splash pads due Coronavirus Disease (COVID-19).
ÃÛèÖÖ±²¥, coronavirus

Caution tape across an entrance on a playground at Gene C. Reid Park, 900 S. Randolph Way, in ÃÛèÖÖ±²¥, Ariz., on April 1, 2020. City of ÃÛèÖÖ±²¥ Parks and Recreation employees are closing all ramadas, gazebos, playgrounds, outdoor fitness equipment, sports courts and more due to the coronavirus outbreak.
ÃÛèÖÖ±²¥, coronavirus

A "CLOSED' sign and caution tape is placed around a ramada at Gene C. Reid Park, 900 S. Randolph Way, in ÃÛèÖÖ±²¥, Ariz., on April 1, 2020. The City of ÃÛèÖÖ±²¥ Parks and Recreation employees are going around to all ÃÛèÖÖ±²¥ parks to close all ramadas, gazebos, playgrounds, outdoor fitness equipment, all sports courts and fields, horseshoe pits and splash pads due Coronavirus Disease (COVID-19).
ÃÛèÖÖ±²¥, coronavirus

Vanessa Richards, 18, left, and Ella Dotson, 17, adjust their mortar boards and hair in the window of a building along Scott Ave. in downtown ÃÛèÖÖ±²¥ on March 31, 2020. Due to the coronavirus (COVID-19) pandemic the rest of the school year has been canceled. Richards and Dotson are seniors at Marana High School and will not have a formal graduation ceremony. The pair came to downtown to get photos of themselves in their caps and gowns.
ÃÛèÖÖ±²¥, coronavirus

Vanessa Richards, 18, left, and Ella Dotson, 17, take a selfie as their friend, Camilla Hamilton, 17, gets her photo taken by Vanessa’s mother, Chrissi, along Scott Ave. in downtown ÃÛèÖÖ±²¥ on March 31, 2020. Due to the coronavirus, the rest of the school year has been canceled. The Marana High School seniors went downtown to get photos of themselves in their caps and gowns.
ÃÛèÖÖ±²¥, coronavirus

Georgia Goodwin, volunteer, sews masks for hospital workers and the community at Cathey's Sewing and Vacuum, 5701 E. Speedway Blvd., in ÃÛèÖÖ±²¥, Ariz., on March 30, 2020. Cathey's Sewing and Vacuum have made roughly 2,000 masks, due to Coronavirus Disease (COVID-19), in one week for local hospitals in Southern ÃÛèÖÖ±²¥.
ÃÛèÖÖ±²¥, coronavirus

Along with other volunteers and employees, Paula Sanford, center, volunteer, sews masks for hospital workers and the community at Cathey's Sewing and Vacuum, 5701 E. Speedway Blvd., in ÃÛèÖÖ±²¥, Ariz., on March 30, 2020. Cathey's Sewing and Vacuum have made roughly 2,000 masks, due to Coronavirus Disease (COVID-19), in one week for local hospitals in Southern ÃÛèÖÖ±²¥.
ÃÛèÖÖ±²¥, coronavirus

Andy Cathey, Cathey's Sewing and Vacuum employee, sews masks for hospital workers and the community at Cathey's Sewing and Vacuum, 5701 E. Speedway Blvd., in ÃÛèÖÖ±²¥, Ariz., on March 30, 2020. Cathey's Sewing and Vacuum have made roughly 2,000 masks, due to Coronavirus Disease (COVID-19), in one week for local hospitals in Southern ÃÛèÖÖ±²¥.
ÃÛèÖÖ±²¥, coronavirus

Andy Cathey, Cathey's Sewing and Vacuum employee, sews masks for hospital workers and the community at Cathey's Sewing and Vacuum, 5701 E. Speedway Blvd., in ÃÛèÖÖ±²¥, Ariz., on March 30, 2020. Cathey's Sewing and Vacuum have made roughly 2,000 masks, due to Coronavirus Disease (COVID-19), in one week for local hospitals in Southern ÃÛèÖÖ±²¥.
ÃÛèÖÖ±²¥, coronavirus

Rudy Arriaga, far left, and his mother, Dale, chat with Damian Velez, far right, general manager and Joseph Ashbacher before leaving with their takeout order at Bianchi's Italian Restaurant, 3640 W. Tangerine Road, in Marana, Ariz. on March 30, 2020. The Marana location will closed due to a drop in business.
ÃÛèÖÖ±²¥, coronavirus

A man wearing personal protective equipment works out at FitCore at Morris K Udall Park, 7200 E. Tanque Verde Rd., in ÃÛèÖÖ±²¥, Ariz., on March 29, 2020.
ÃÛèÖÖ±²¥, coronavirus

Ruby Boulet-Stephenson waters the family's new backyard garden, on March 27, 2020.
ÃÛèÖÖ±²¥, coronavirus

Roccos Little Chicago Pizzeria sports the phrase "Eat the Rich" on its marquee, on March 31, 2020. The local pizza spot is currently closed due to Coronavirus disease (COVID-19.)
ÃÛèÖÖ±²¥, coronavirus

A pedestrian crosses Church Avenue near the Historic Pima County Courthouse in a nearly-empty downtown ÃÛèÖÖ±²¥ during the coronavirus pandemic in spring 2020.
ÃÛèÖÖ±²¥, coronavirus

A bank customer wears gloves while at a drive up ATM at Chase Bank, 8701 E. Broadway Blvd., in ÃÛèÖÖ±²¥, Ariz., on March 29, 2020.
ÃÛèÖÖ±²¥, coronavirus

While traveling through ÃÛèÖÖ±²¥, Canadians Lauri Buchanan and her husband Brian Buchanan, left, eat lunch with their friends Rhonda McDonald and her husband Pat McDonald, right, from Wyoming, outside of Whataburger, 6504 E. 22nd St., in ÃÛèÖÖ±²¥, Ariz., on March 30, 2020. Mr. and Mrs. Buchanan and Mr. and Mrs. McDonald were eating outside due to Coronavirus Disease (COVID-19).
ÃÛèÖÖ±²¥, coronavirus

David Cardinal, a sales associate at The Hub, works with a customer at the gun store located at 1400 S Alvernon Way, on March 28, 2020. The store saw an increase in customers during the last few weeks.
ÃÛèÖÖ±²¥, coronavirus

An employee at The Hub, a gun store located at 1400 S Alvernon Way, works with a customer on March 28, 2020. The store saw an increase in customers during the last few weeks.
ÃÛèÖÖ±²¥, coronavirus

Cassie Phelps, food service employee for ÃÛèÖÖ±²¥ Unified School District, hands two students lunches and breakfast at Harold Steel Elementary School, 700 S. Sarnoff Dr., in ÃÛèÖÖ±²¥, Ariz., on March 31, 2020. TUSD is offering lunches and breakfast for students due to schools being canceled because of Coronavirus Disease (COVID-19).
ÃÛèÖÖ±²¥, coronavirus

Jolene Luquin, teaching assistant for ÃÛèÖÖ±²¥ Unified School District, organizes educational packets for a parent at Harold Steel Elementary School, 700 S. Sarnoff Dr., in ÃÛèÖÖ±²¥, Ariz., on March 31, 2020. The educational packets, for grades K-12, include the curriculum for all classes from science to math to history and others. It allows the students, parents and teachers to keep learning despite not being in the classroom, according to Karla Escamilla, TUSD public information officer. TUSD plans to have most of the paperwork online in the next couple of weeks, said Escamilla, as well as issue laptops to students who don't have access to a computer. TUSD is issuing these packets and online school due to Coronavirus Disease (COVID-19).
ÃÛèÖÖ±²¥, coronavirus

After more than a week in isolation, Tami and Tedd Handy get the chance to dance as Mama Coal, Carra Stasney and Tim O'Connor give a street concert on Placita de Zacatal in the Casas Adobes neighborhood, Saturday, March 28, 2020, ÃÛèÖÖ±²¥, Ariz.
ÃÛèÖÖ±²¥, coronavirus

Mama Coal, Carra Stasney and Tim O'Connor take to the great outdoors along Moonshroud Dr., in Catalina Shadows, Saturday, March 28, 2020, ÃÛèÖÖ±²¥, Ariz.
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