California has reopened. Businesses are allowed to operate at full capacity. There is still some confusion about what can be required of customers and staff.

You can find the latest guidance from the City of Pasadena here: https://www.cityofpasadena.net/public-health/wp-content/uploads/sites/32/Reducing-Risk-for-COVID-19.pdf?v=1623860883732

Pasadena's guidelines closely mirror those of the state and county.

Cases of COVID-19 remain low. Fatalities have almost disappeared and hospitalizations are rare.

Still we are advised to continue taking precautions. Get vaccinated. Wear a mask indoors.

The pandemic is waning but we are not through with COVID-19 yet.

Landlord Relief Proposed by LA County Supervisors: From the Pasadena Star-News:  The Los Angeles County Board of Supervisors unanimously voted Tuesday in support of a motion that would establish some protections for small business owners and set a $10 million fund to compensate their landlords.

The motion, brought forward by Supervisors Holly Mitchell and Supervisor Hilda L. Solis, directs several Los Angeles County officials, including the Chief Executive Officer, the Chief Information Officer, the Director of the Department of Consumer and Business Affairs, the Director of the Los Angeles County Development Authority and County Counsel to report back in 45 days with the estimated number of commercial COVID-19 rental debt owed by small business tenants. The motion also calls County Counsel to report back with language options for an ordinance the county can adopt that would be aligned with existing protections under the eviction moratorium, which was earlier extended by supervisors through Sept. 30.

Supervisors acknowledged that the economic fallout of the pandemic could trigger the eviction and shutdown of small businesses, putting strain on entrepreneurs, who often had to dig into their personal savings to stay afloat during the pandemic. Over 93% of the businesses in Los Angeles County have 20 employees and fewer, according to county officials. And even as the county has been reopening, many mom-and-pop restaurants and businesses remain in dire situations. Government subsidies and programs often failed to provide sufficient help.

A recent report by the Los Angeles Economic Development Corporation said that support to small businesses during the last year has been flawed as larger companies with established lending relationships with banks were able to receive priority. As a result, many businesses now owe hundreds of thousands of dollars in rent debt — with companies in underrepresented communities being disproportionately impacted. In January, Small Business Majority released a report, saying that 52% of Latino, 55% of Asian Americans/ Pacific Islanders and 45% of Black entrepreneurs were struggling to pay rent or mortgages over the next six months.

The financial losses and debt have become a major source of tension between tenants and landlords with some landlords refusing to renegotiate the accumulated debt. 

Within 60 days, the county will establish a COVID- 19 Small Business Rent Relief Program and find a program administrator who will work on identifying funding of at least $10 million to compensate landlords of qualified business owners, who meet certain criteria, including: Be a person or entity that operates or has operated in the past 24 months an independently owned and operated business that has its principal place of business in the County.

  • Have an annual average number of nine or fewer full-time equivalent employees.
  • Have annual total gross revenues of no more than $1 million.
  • Demonstrate a gross revenue loss of at least 25% over a twelve-month period falling at least in part within the period of the County’s COVID-19 emergency order.

 

The priority will be given to smaller commercial landlords who are: The assessed value of all affected commercial rental property owned by that landlord.
Income of the landlord, as reported on tax filings. Equity considerations based on the geographical location of the affected small businesses. No reported violations of local, state or federal law and administrative procedure by the landlord.

Gov. Gavin Newsom and legislative leaders announced a package Friday to extend the eviction moratorium through September and streamline an aid program to pay landlords 100% of unpaid rent. The proposal — expected to have a price tag of $7.2 billion — would fully reimburse landlords for unpaid rent during the pandemic and cover missed utility bills, making it among the most generous packages in the country. It also directs money toward city and county relief programs that have been overwhelmed with demand. The bill would extend a ban on evictions to Sept. 30, stretching renter protections that began with Newsom’s executive order in March 2020. It would be the third extension of rent protections. The emergency bill needs approval of the Legislature by Wednesday.

 

But landlords disagree on the moratorium extension:  A California landlords group said the economy has recovered enough that most of the state’s renters should be able to pay for their housing. The California Apartment Association on Tuesday pointed to a report prepared by independent research firm Beacon Economics. Renters’ finances have held up over the past year, employment is improving, and late payments and debt are declining, the group said.

Federal and state governments enacted laws last year to protect renters from eviction as Covid-19 lockdowns put millions of people out of work. California’s measure is set to expire at the end of the month — potentially ending a lifeline for Americans still under financial stress — unless it’s extended.
Governor Gavin Newsom, benefiting from an unprecedented budget surplus, has proposed spending $5.2 billion to help lowincome residents who are behind in rent, along with another $2 billion to cover overdue utility bills.

Tom Bannon, chief executive officer of the landlords’ group, said in a statement that those who truly can’t afford housing should receive government assistance. But the moratorium has meant that “too many tenants with the means to to pay have withheld their rent simply because they could do so without consequences,” he said.

Any extension of the moratorium should be for a short term, Bannon said.

Economy: From the Pasadena Star-News: The U.S. economy grew at a solid 6.4% rate in the first three months of the year, setting the stage for what economists believe may be the strongest year for the economy in about seven decades.

 

Growth in the gross domestic product, the country’s total output of goods and services, was unchanged from two previous estimates, the Commerce Department said Thursday, an acceleration from the 4.3% pace of the fourth quarter.

 

Economists believe that economic growth has continued to accelerate in the current quarter, which ends this month, as vaccinations become widespread and Americans eager to get outside are being welcomed by newly reopened businesses. Surging activity from consumers is being fueled in part by nearly $3 trillion in financial support that the government has approved since December.

Other economic data that emerged Thursday also points to a nation that has regained its footing quickly after being thwacked by a global pandemic, though jobless claims remain stubbornly above 400,000.

Unemployment:  From the Pasadena Star-News: Unemployment claims in California fell slightly last week but remained above levels seen during the healthier job market before coronavirus-linked shutdowns began 15 months ago.

California workers filed about 64,700 initial claims for jobless benefits during the week ending Saturday, which was 3,300 fewer than the 68,000 claims workers filed the previous week, according to the U.S. Labor Department.

Despite the improvement, jobless claims in California last week were 44% higher than levels in January and February 2020.

Applications for U.S. state unemployment insurance also fell slightly last week, though were higher than forecast, as the labor market meanders toward a full recovery.

Initial claims in regular state programs decreased by 7,000 to 411,000 in the week ended Saturday, Labor Department data showed Thursday.

The median estimate in a Bloomberg survey of economists called for 380,000 new applications. The prior week’s claims were revised up to 418,000.

Weekly unemployment claims have fallen considerably since the beginning of the year as health concerns abate and businesses like restaurants return to full capacity. Still, the initial claims remain significantly higher than they were before COVID-19, and many employers say they are having trouble finding workers.

Continuing claims for ongoing state benefits fell by 144,000 in the week ended June 12 to 3.4 million.

States across the county are ending enhanced federal unemployment benefit programs amid an ongoing debate about whether the programs are restraining hiring. Overall, 26 states will end federal programs before their official expiration date in September, which may start to bring continued claims figures down considerably in the coming weeks.

Missouri, Mississippi and Iowa — which ended federal programs June 12 — all posted declines in claims for pandemic unemployment assistance. Declines for initial claims were widespread, with states including California, Florida and Ohio posting some of the biggest drops. Pennsylvania posted the biggest gain in applications last week.