Hero Text

1972 – Over 45 years of service to the commercial industrial retail real estate industry – 2018.

Weekly Update- September 11, 2020

September 11, 2020

STATEWIDE AND LOCAL EVICTION MORATORIUM

As we have previously reported, the statewide eviction moratorium bill, AB 3088, has been signed into law by Governor Newsom.  The new law pertains to residential actions and does not include commercial.

However, while the legislative year is over, and we have managed to prevent Sacramento from passing new laws inhibiting commercial property rights, various local ordinances and limitations are still be in effect and may impact your properties.

Please consult with your attorney before initiating any unlawful detainer activity to make certain that such actions are not disallowed in your specific county/city.

 

NO ON PROP 15 – BROAD BASED BIPARTISAN OPPOSITION

A coalition of Democrat, Republican and non-partisan local elected officials announced their opposition today to Proposition 15—the largest property tax increase in state history. Opposition to the $11.5 billion property tax increase cuts across all partisan and geographic lines as more than 200 state and local elected officials have voiced opposition to Prop 15.

“During this time of pain and uncertainty, Prop 15 would impose new hardships on consumers, small businesses and farmers when they are already struggling amid the worst recession in decades,” said Kevin Faulconer, mayor of San Diego. “The pandemic is already threatening to extinguish the American Dream for generations of Californians, and we should not make a terrible situation worse by adding higher taxes.”

“Prop 15 isn’t the answer and will only get in the way of California’s much needed recovery,” wrote Antonio Villaraigosa former Los Angeles mayor and speaker of the State Assembly in a recent CalMatters op-ed.

“Millions of Californians are filing for unemployment and are at risk of losing everything,” added Willie Brown, former mayor of San Francisco and speaker of the State Assembly. “Prop 15 will make the economic crisis worse by devastating small businesses – including our neighborhood restaurants, barbershops, and dry cleaners – by raising their rents. Vote NO.”

Far from benefitting every community, the Legislative Analyst’s Office says, “Not all governments would be guaranteed new money. Some in rural areas may end up losing money,” contrary to claims by the measure’s backers.

“Prop 15 creates clear winners and losers. Low-income communities like mine stand to gain scraps off the table as home foreclosures are looming. Prop 15 will only increase inequality in California,” added State Senator Cathleen Galgiani (D-Stockton). “Prop 15’s numerous flaws mean it will cause more problems than solutions.”

According to a study by the California State Conference of the NAACP, Prop 15’s higher property taxes will hurt Black and Latino businesses the most. These same businesses will face rising rents due to Prop 15’s higher property taxes at a time when they are trying to keep their doors open.

“Given what’s going on with the COVID-19 pandemic and downturn in the economy, now is the worst time possible for the largest property tax increase in California’s history,” said Assemblywoman Sharon Quirk-Silva (D-Orange County). “Prop 15 will be devastating for California and will make things even worse for minority-owned businesses after they have been disproportionately hurt by the recession. That’s just plain unfair.”

To view the full list of elected officials opposing Prop 15, click here.

 

CCDA ACCESSIBILITY CONSTRUCTION INSPECTION CHECKLIST

The California Commission on Disability Access (CCDA) has updated their Accessibility Construction Inspection Checklist (Accessibility Checklist), which is used by building code officials/building inspectors as a reference guide to assist with on-site inspection of accessibility features and construction elements affecting accessibility compliance.

The Accessibility Checklist can also help you as a property owner/manager to keep an eye on your Tenant Improvement projects in terms of complying with ADA standards.

Click here to read more.

The CCDA is a 17-member independent commission consisting of 11 public members and six (6) ex-officio non-voting members. The CCDA was established through legislation sponsored by CBPA enacted in 2008.  Doug Wiele, a former CBPA chair and long-time board member, serves as CCDA’s Vice Chair.

 

 TENANTS’ TROUBLES PUT STRESS ON COMMERCIAL REAL ESTATE

The New York Times has run a comprehensive story about impacts of COVID-19 on the commercial, industrial, and retail real estate industry.  The story highlights how a California Tenant-Only Brokerage firms have used the pandemic to undercut property owners even on behalf of companies that are not experiencing pandemic related downturns in revenue.

In general, most landlords and most tenants have chosen to work together recognizing the symbiotic relationship of commercial real estate, but there are some issues and tensions that arise as everyone struggles to stay healthy, provide services, and keep employees with jobs.

Click here to read the NYT story.

 

BILLS AWAITING GOVERNOR’S ACTION

 Signature Requests

 SB 288 (Wiener – D) California Environmental Quality Act: exemptions: transportation-related projects.

Summary: Enables sustainable transportation projects as an essential part of California’s economic recovery from COVID-19 by providing targeted CEQA exemptions for certain transportation/housing projects saving anywhere from 6 months to 4 years in permitting.

Position: SUPPORT

Status: On Governor’s Desk.

 AB 1561 (Garcia, Cristina – D) Planning and zoning: housing element and entitlement extensions.

Summary: Enables a uniform statewide permit and entitlement extension, which is necessary to avoid expiration of permits and the significant statewide cost and allocation of local government staff resource to unnecessarily go through the process again.

Position: SUPPORT

Status: On Governor’s Desk.

 Veto Requests

AB 841 (Ting – D) Energy: transportation electrification: energy efficiency programs.

Summary: Drives up the costs of Electric Vehicle Charging infrastructure by creating a monopoly for one of the bill sponsors – a private Michigan based group (EVITP) – to control every aspect of the installation of EV chargers in California.  Additionally, the bill redirect energy efficiency program funding away from commercial properties.

Position: OPPOSE

Status: On Governor’s Desk

 AB 1066 (Gonzalez – D) Unemployment compensation: benefits payable: collection.

Summary: Potentially eliminates the opportunity for an employer to present evidence of independent contractor status by imposing an arbitrary 10-day statutory deadline for a business to produce records, or face a “conclusive presumption” that the individual is entitled to benefits.  Even businesses actin in “good-faith” face penalties and loss of appeals.

Position: OPPOSE

Status: On Governor’s Desk.

AB 3216 (Kalra – D) Unemployment: rehiring and retention: state of emergency.

Summary: Requires an employer to offer its laid-off employees specified information about job positions that become available for which the laid-off employees are qualified, and to offer positions to those employees based on a preference system.

Position: OPPOSE

Status: On Governor’s Desk.

SB 1159 (Hill – D) Workers’ compensation: COVID-19: critical workers.

Summary: Increases employer expenses as many employees who are not infected at work to be covered by workers’ compensation benefits paid by employers.

Position: OPPOSE

Status: On Governor’s Desk

SB 1383 (Jackson – D) Unlawful employment practice: family leave.

Summary: Makes it an unlawful employment practice for any employer to refuse to grant a request by an employee to take up to 12 workweeks of unpaid protected leave during any 12-month period.

Position: OPPOSE

Status: On Governor’s Desk.

Posted In Uncategorized

comment closed