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Committee hears estimates of commercial unpaid rent; officials urge grants, scaled legal aid and landlord negotiation supports
Summary
The Budget Committee reviewed BLA estimates of unpaid commercial rent and heard pleas from small-business advocates for more grant funding, mediation and targeted legal support to avert mass vacancies when the commercial eviction moratorium ends June 30.
Vice Chair Safaee convened a hearing focused on commercial leases and unpaid rent for businesses affected by COVID-19, centering neighborhood retail, restaurants and other small businesses.
The Budget and Legislative Analyst presented an estimate of unpaid commercial rent based on taxable-sales declines and square-footage rental models: monthly unpaid commercial rent in 2020 was estimated at roughly $19.1 million to $44.9 million, and the cumulative unpaid rent over nine months could be $172 million to $404.5 million. The BLA emphasized that retail and food-service outlets accounted for 89%–98% of estimated unpaid rent.
OEWD and the Office of Small Business described local relief to date: roughly $52 million in local programs (grants and loans) have been deployed or are in process, with a recent tranche shifting the mix to favor grants (the new tranche was described as closer to 70% grants versus earlier tranches that were loan-heavy). OEWD noted that federal programs (PPP, EIDL) have provided about $6.1 billion in assistance to San Francisco businesses overall, but national evidence shows federal programs disproportionately reached larger companies.
Small-business advocates and commissioners stressed that most small businesses (98% of firms on the city—s business tax roll are under $15M) were maxed out on debt and need grant relief rather than more loans. Commissioners and community speakers urged the city to scale legal and mediation services to help tenants negotiate reduced or forgiven rent, to tailor programs to the hardest-hit neighborhoods, and to consider incentives for landlords (for example, tax or mortgage forbearance tied to rent abatement). OEWD pledged to expand pro-bono legal support and mediation and to continue outreach in multiple languages.
Public comment from industry associations (restaurant and entertainment) emphasized the need for federal restaurant relief monies, reiterated that many minority- and women-owned businesses did not get full federal assistance, and urged immediate local grant programs and regulatory reforms to make reopening and reuse of commercial space easier.
What happens next: the committee filed the hearing and supervisors signaled intent to pursue targeted, grant-focused relief, expanded legal/mediation support, and negotiations with state/federal partners for additional funds.
