- CALIFORNIA GOVERNOR ISSUES STATEWIDE STAY AT HOME ORDER
- COVID-19 RESOURCES PAGE
- GOVERNOR EXECUTIVE ORDER – EVICTIONS/MORTGAGES/UTILITY SHUT-OFFS
- “ESSENTIAL BUSINESSES/PERSONNEL”
- OTHER COMMUNITY-BASED GOVERNMENT OPERATIONS AND ESSENTIAL FUNCTIONS
- FEDERAL AND STATE TAX DEFERRALS
- CAPITOL/LEGISLATURE SHUTS DOWN
- CBPA 2020 CALENDAR
CALIFORNIA GOVERNOR ISSUES STATEWIDE STAY AT HOME ORDER
On March 19, 2020, Governor Gavin Newsom issued a stay at home order to protect the health and well-being of all Californians and to establish consistency across the state in order to slow the spread of COVID-19.
COVID-19 RESOURCES PAGE
The reaction to COVID-19 is fluid and fast. There are many sources of information out there and until things start to settle down will only send essential updates that impact our industry.
To that end, we have created a “COVID-19 Resources” page where we will collect and post information specific to commercial real estate. We will also link to local and national real estate resource pages. Click here to view our resource page.
We hope consolidating this information will help you as you work with local authorities on emergency response plans, shelter-in-place orders, defining “essential” businesses, and other important issues.
If you have pages that you find particularly helpful, please let us know and we will link to them.
GOVERNOR EXECUTIVE ORDER – EVICTIONS/MORTGAGES/UTILITY SHUT-OFFS
Earlier this week, Governor Newsom issued an executive order to protect residential and commercial lessors, and homeowners from evictions due to the COVID-19 Pandemic. We have supported the Governor’s actions as during this time of emergency and stay-at-home orders public safety is the first and foremost concern. The quicker we get through this emergency the better for all.
The Executive Order authorizes local governments to halt evictions, slow foreclosures, and protect against utility shut offs. Many local governments have already moved forward and adopted local ordinances including San Francisco, Los Angeles, Sacramento, and many others.
The EO applies to both residential and commercial. The order does not waive the rent obligation of tenants but allows local governments to defer action until May 31, 2020.
Our industry provided feedback to legislators working on this issue. Much of our feedback has been taken into account and at the state level, however we know some of your local communities may adopt more strict measures than others.
Buildings can be complicated mechanically, need security, and/or have tenants in them that are deemed essential businesses. We can’t just abandon our buildings, especially when tenants remain. Therefore, our recommendation to local/state/federal policymakers is that the following building personnel are essential in any written orders and or enforcement guidance:
- Building management staff
- Building security staff/vendors
- Building engineering staff/vendors
- Building janitorial staff/vendors
- Building elevator, HVAC, plumbing and electrical staff/vendors
- Building fire safety staff/vendors
- Commercial and Residential Construction
You should check with local authorities if there is any question and/or if you are working with them to draft a local order. If your local authorities do not conform to this guidance you should be proactive about communicating the importance of these workers.
The Governor’s Executive Order references “CISA” which is a department of Homeland Security identifying “critical infrastructure.”
Below is information and guidance documents that outlines “essential personnel” and infrastructure. Here is the guidance specific to our sector:
ESSENTIAL CRITICAL INFRASTRUCTURE WORKERS GUIDANCE: As the Nation’s risk advisor, CISA developed this guidance to help state and local governments and the private sector ensure that employees essential to operations of critical infrastructure are able to continue working with as little interruption as possible. The purpose of this guidance is to enable continued resilience for public community health and safety of government, economy, and society despite possible impacts to the workforce and critical infrastructure workforce brought on by consequences of COVID-19. Click here to view.
OTHER COMMUNITY-BASED GOVERNMENT OPERATIONS AND ESSENTIAL FUNCTIONS
•Workers to ensure continuity of building functions
•Security staff to maintain building access control and physical security measures
This guidance is also on their website, under “Other Community based…” Click here to view.
And here is the COVID-19 Specific Page:
FEDERAL AND STATE TAX DEFERRALS
FEDERAL INCOME TAX DEFERRAL: Following President Trump’s emergency declaration pursuant to the Stafford Act, the U.S. Treasury Department and Internal Revenue Service (IRS) today issued guidance allowing all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest. The guidance also allows corporate taxpayers a similar deferment of up to $10 million of federal income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest. This guidance does not change the April 15 filing deadline.
Click here for more information on federal tax issues related to the COVID-19 Pandemic.
CALIFORNIA INCOME TAX: The Franchise Tax Board (FTB) today announced special tax relief for California taxpayers affected by the COVID-19 pandemic. Affected taxpayers are granted an extension to file 2019 California tax returns and make certain payments until June 15, 2020
Click here for more information about California income taxes.
CALIFORNIA PROPERTY TAXES: Our industry is asking for a delay in the collection of the second installment of property taxes that is due April 10th or at a minimum an automatic waiver of any penalties for 90 days. The date of collection is statutory so the Gov or legislature can change that. We ask our members to press this request with local and statewide leaders as it is one way to help mitigate the impact shelter at home orders are having on commercial real estate and our tenants.
CAPITOL/LEGISLATURE SHUTS DOWN
Legislative activity has come to a halt as the Capitol Building is shut down and most regulatory agencies are focused on the COVID-19 Pandemic.
The Legislature has taken at least a 3-week break in activity and members have gone home to their districts.
However, these processes will start to back up at some point electronically or in person when the stay at home orders are lifted. We continue to analyze legislative bills to prepare for the Session, so please let us know as you hear about bills and bill ideas at the local level.
CBPA 2020 CALENDAR
Thursday, April 9
CBPA Industrywide Legislative Meeting
VIA TELECONFERENCE – EMAIL FOR MORE INFO
Tuesday-Wednesday, June 9-10
California Commercial Real Estate Summit
Cal Chamber, Sacramento
DUE TO SHELTER IN PLACE ORDERS THIS EVENT IS PENDING
Thursday, November 5
CBPA Board Meeting & Industry Awards Dinner
The Renaissance Hotel, Newport Beach