Boosting Small Businesses: LA City Council Gives Green Light to Rental Assistance Program

The Los Angeles City Council has approved rental assistance for small commercial tenants who lease property owned by the city and have been affected by the COVID-19 pandemic. The Council unanimously supported the motion put forth by Council members Curren Price and Paul Krekorian, with some members absent.

Under the approved plan, the General Services Department of the Council will waive rent payments for for-profit, small business tenants who leased city-owned property between April 1, 2020, and June 30, 2021. For businesses that leased from July 1, 2021, to December 31, 2021, eligible rent payments will be reduced by 40%. The department will also provide credit for any rent already paid, which can be used towards future or overdue payments.

In addition to providing rental relief, Councilman Price called for further efforts to revitalize the Los Angeles Mall and support small businesses there. A report will be prepared by city staff, offering recommendations for short-term solutions to make the mall a more enticing venue for events and the public.

The rental assistance motion was originally introduced by Price and Krekorian in November 2022, as a way to support businesses impacted by the pandemic.

While the city had previously provided rent relief to tenants of commercial properties under the Proprietary Departments and the El Pueblo de Los Angeles Historical Monument Department, General Services Department tenants were not included. This meant that small businesses located in downtown L.A. City buildings, such as the Van Nuys Civic Center, Department of Transportation parking structures, and the L.A. Mall, did not receive the same relief.

Many of these tenants provide services and food options to the civic center workforce, as well as visitors to the city buildings. The mall, which was established in the 1970s, offers retail and food services to city, county, and federal employees, jurors, and downtown residents. However, due to the pandemic, the number of visitors and business significantly decreased as people stayed home. Even with the reopening, normal activity has not fully resumed as many people continue to work remotely.

The Council’s decision aims to assist businesses that have outstanding rent from 2020 to 2021 and ensure that they remain open.

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