Rent Deferral Program

Program Overview

On June 9, 2020, the Port Commission adopted Resolution 20-30 which approved the Port’s Opt-In Rent Deferral Program. The Opt-In Program is first step in the economic recovery process. 

Rent for March through July 2020 for most tenants was deferred under the Port’s initial rent deferral program (Port Commission Resolution 20-27). Tenants who participate in the Opt-In Program will not be assessed late fees or default interest for any rent payments due for the months of August 1, 2020 through December 2020. Read the Executive Director Memo on the Opt-In Rent Deferral Program for more info.

Consistent with the Mayor’s commercial eviction moratorium, the Port will also forbear from taking any action to evict tenants for nonpayment of any portion of rent due to the impact of COVID-19


Program Requirements

  • Submission of a complete application by the Deadline of 11:59pm on July 15, 2020.
  • All deferred rents must be paid on or before December 31, 2020 or the date of surrender of the leasehold, whichever is earlier. If not, fees and interest would apply.
  • Submission of a mid-term report to the Port, due in October.

 

Program Key Terms

  • Except as to rent as provided by the policy, tenants must continue to comply with all lease obligations during any rent deferral period (such as maintenance and repair obligations and percentage rent reporting obligations). 
  • If a tenant is unable to fulfill non-monetary lease obligations due to impacts from the current emergency situation, Port staff will address those issues on a case-by-case basis.
  • The forbearance benefit of the Opt-In Program does not change the terms or conditions of any lease or other Port agreement. 
  • The Opt-In Program will not affect ongoing lease enforcement actions or lease enforcement actions for defaults not related to the current emergency. 
  • Tenants who participate in the Opt-In Program may elect to pay full or partial rent during the term of the Program. 

 

Submittal Requirements

Tenants wishing to continue to defer rent payments will be required to submit the following information by the Submission Deadline.  For more detail please review the Application

  • Describe impact from COVID-19 and need for relief. 
  • Describe business plan to operate safely while COVID-19 is still circulating in the community. 
  • Provide revenue projections from March - December in light of current economic conditions. 
  • Using the revenue estimates above, project anticipated cash flow that indicates whether the tenants can resume current rent payments on or before December 31, 2020. 
  • Document any and all submittals to federal, state and local relief programs and summary of application status. If no such applications were filed, tenant would be asked to explain reasons (ineligibility, etc.). 

 

Eligibility

This Opt-In Rent Deferral Program would apply to all leases, licenses and other agreements to use Port property, except for:

  • MOUs with City departments
  • Maritime terminal agreements
  • Lay berthing agreements, 
  • Berthing agreements for small vessels at South Beach Harbor
  • Agreements executed on or after April 1, 2020 
  • Tenants claiming the benefit of force majeure or similar provisions in its lease. 
  • In any scenario where a Port tenant has subleased some or all of its space, including master tenants, such relief will only be available to the extent that the Port’s tenant has offered equivalent relief to the subtenant(s).  

 

Business with Multiple Port Leaseholds

If your business has more than one location on Port property, you must submit for each location individually.

 

Apply Here

 

For Questions

 

Further Tenant Relief

Port Staff will be returning to the Port Commission this summer with proposals of further relief measures that will include a Deferred Rent Repayment Program and a Rent Forgiveness Program. Please check the Port Commission Calendar and Agenda for agendas on upcoming meetings. Participation in the Opt-In Program would not prohibit a tenant from participating in future tenant relief programs.