Ohio Governor Requests Leniency for Commercial Tenants and Borrowers
On April 1, 2020, Governor DeWine issued Executive Order 2020-08D (the order) to provide financial relief to small business commercial tenants and commercial real estate borrowers in the State of Ohio. Recognizing that the economic impacts of COVID-19 have made it difficult for Ohio businesses to make payments of rent and loans, the order sets forth the following directives:
- Landlords are requested to suspend rent payments for small business commercial tenants that are facing financial hardship due to the COVID-19 pandemic.
- Landlords are requested to provide for a moratorium of evictions of small business commercial tenants.
- Lenders (which includes banking organizations, credit unions, and mortgage brokers) are requested to provide commercial real estate borrowers with a commercial mortgage loan for a property located in the State of Ohio an opportunity for a forbearance from the enforcement of any remedies following any monetary or non-monetary defaults arising as a result of a financial hardship due to the COVID-19 pandemic.
Each of the above measures are:
- to be provided for a period of at least 90 consecutive days following the issuance of the order and
- set forth as requests (as opposed to requirements).
The order does not negate the obligation of a tenant to pay rent or restrict a landlord from recovering rent at a future time, nor does it negate the obligations of a commercial real estate borrower. Instead, the order promotes this period of postponed rent payments, suspended eviction orders and forbearance as an opportunity for financial relief and the creation of sensible solutions between real estate borrowers and lenders.
Should you have any questions regarding commercial rents and mortgages, please contact Mr. Abercrombie.
Anna L. Crisp, a law clerk with Eastman & Smith who is finishing her third year at The Ohio State University Moritz College of Law, contributed to this article.
At the date of publication the above information was correct. It is quite possible the information above has changed as COVID-19 is a rapidly evolving situation.
The article in this publication has been prepared by Eastman & Smith Ltd. for informational purposes only and should not be considered legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney/client relationship.