CBPA's California Legislative Update 04/03/2020
- THANK YOU TO GOODS MOVEMENT WORKERS!
- SPLIT ROLL PROPERTY TAX PLOWS FORWARD
- SF BAY AREA STOPS MOST CONSTRUCTION
- GOVERNOR CLARIFIES CONSTRUCTION OK IN OTHER PARTS OF STATE
- COVID-19 RESOURCES PAGE
- CALIFORNIA PROPERTY TAXES
- GOVERNOR’S EXECUTIVE ORDER – EVICTIONS MORATORIUM
- ESSENTIAL BUSINESSES/PERSONNEL - UPDATED
- FEDERAL STIMULUS
- CAPITOL/LEGISLATURE SHUTS DOWN
- CBPA 2020 CALENDAR
THANK YOU TO GOODS MOVEMENT WORKERS!
Earlier this week Governor Gavin Newsom Tweeted the following: “Just wanted to start the day saying THANK YOU to our dock workers, truck drivers, and warehouse workers -- making sure our stores are stocked and our hospitals get equipment. Thank you.”
We echo the sentiment. To everyone from nurses and first responders, to grocery store clerks and property managers, thank you for keeping California working during this crisis!
SPLIT ROLL PROPERTY TAX PLOWS FORWARD
Despite the fact that many property owners are getting hammered during the COVID-19 pandemic by the economy coming to a screeching halt, our members have stood with Governor Newsom and many local governments to support eviction moratoriums as we desperately work to make sure our tenants have every opportunity to survive.
Despite the fact that no direct aid has yet been authorized for property owners that are unable to meet their own financial obligations as rents has halted in many buildings, our industry has made sure buildings remain open, clean, operational so essential services can be delivered – from stores, to offices, to warehouses, the commercial real estate industry is helping California residents through this.
Despite the massive damage happening to the economy right now, proponents of the largest tax increase ever - $11 Billion PER YEAR – are charging forward to hammer your businesses, employees, and tenants even more.
Split roll proponents, a mixture of public employee unions and Leftist advocacy groups have turned in signatures to qualify a measure that if passed will further push our state’s economy into the hole.
If you don’t think this effort is meant to not only overturn Proposition 13, but snuff-out the spirit of predictably and manageable property tax increases in our state, click here.
Learn what YOU can do to stop this bad idea. Californians to Save Prop 13,click here.
SF BAY AREA STOPS MOST CONSTRUCTION
Six San Francisco Bay Area Counties including Alameda, Contra Costa, Marin, Santa Clara, San Francisco, San Mateo, and Berkeley, have issued a combined revised shelter-in-place order that is much stricter than the statewide order issued by Governor Gavin Newsom.
The new Bay Area order prohibits all residential and commercial construction except:
- Projects immediately necessary to the maintenance, operation, or repair of Essential Infrastructure, including airports, utilities, oil refining, roads and highways, public transportation, solid waste, cemeteries, and telecommunications systems;
- Projects associated with Healthcare Operations, such as hospital clinics, COVID-19 testing facilities, pharmacies, and biotechnology companies, provided that such construction is directly related to the COVID-19 response;
- Affordable housing that is or will be income-restricted, including multi-unit or mixed-use developments containing at least 10% income-restricted units (note that the prior Bay Area orders were understood to permit the construction of all housing, irrespective of whether it was affordable or not);
- Essential public works projects if specifically designated by the City Administrator in consultation with the Health Officer as an Essential Governmental Function that is needed to ensure the continuing operation of government agencies and to provide for the health, safety and welfare of the public;
- Shelters and temporary housing, but not including hotels or motels;
- Projects immediately necessary to provide critical noncommercial services to individuals experiencing homelessness, elderly persons, persons who are economically disadvantaged, and persons with special needs;
- Construction necessary to ensure that existing construction sites that must be shut down are left in a safe and secure manner, but only to the extent necessary to do so; and
- Construction or repair necessary to ensure that residences and buildings containing Essential Businesses are safe, sanitary, or habitable to the extent such construction or repair cannot reasonably be delayed.
Aside from construction the new Bay Area order tighten definition of essential businesses, social-distancing requirements, and other strategies to “flatten the curve” of the spread of COVID-19.
Click here to read S.F. version of this order.
GOVERNOR CLARIFIES CONSTRUCTION OK IN OTHER PARTS OF STATE
Governor Gavin Newsom responding to a question about more restrictions on construction stated, said he applauded the construction trades for doing what they are doing to protect tradespeople and their families.
While acknowledging that County Health Officers have the right to put more restrictive measures in place, and saying the statewide order is “subject to change,” the Governor state he was “currently satisfied” with the state directive that allows most construction to take place, in areas outside of counties where more restrictive orders are in place (Bay Area only as of this writing).
Click here for a story on construction issues.
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.
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.
CBPA COVID-19 Resources Page, click here.
CALIFORNIA PROPERTY TAXES
Our industry continues to ask Governor Newsom and other officials, 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 Governor or Legislature can change it and at a minimum to help balance out where properties are not getting rent for the same reasons, this is a reasonable request.
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.
CBPA has now sent two letters on this topic:
March 24, 2020, letter regarding property taxes/COVID-19:
April 3, 2020, letter regarding property taxes/COVID-19:
http://cbpa.com/wp-content/uploads/2020/04/CalTax-EO-Request-RTC2618-Coalition-Letter.pdf
GOVERNOR’S EXECUTIVE ORDER – EVICTIONS MORATORIUM
Governor Newsom has now issued two executive orders on evictions. The first pertains to both residential and commercial lessors, and homeowners from evictions due to the COVID-19 Pandemic.
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.
The second EO pertains strictly to residential tenants and is a statewide protection – no local adoption is necessary.
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.
Our industry provided feedback to legislators working on this issue. much of our feedback into account and at the state level, however we know some of your local communities may adopt more strict measures than others.
Executive Order N-28-20 (March 16, 2020) – Local Authorization for Residential/Commercial Eviction Moratorium
https://www.gov.ca.gov/wp-content/uploads/2020/03/3.16.20-Executive-Order.pdf
Executive Order N-37-30 (March 27, 2020) – Statewide Residential Eviction Order
https://www.gov.ca.gov/wp-content/uploads/2020/03/3.27.20-EO-N-37-20.pdf
Click here to see the Commercial Real Estate Industry Letter to Governor Newsom.
Click here to see the Commercial Real Estate Industry Press Release.
ESSENTIAL BUSINESSES/PERSONNEL - UPDATED
Governor Newsom on Sunday updated the list of essential services under the statewide stay at home order. This second order clears-up any ambiguity and the list now covers all the essential workers from our sector, including construction.
If you have essential services still operating in your facilities, if your building cannot simply shut down and be abandoned, or if you are working on your facilities you are now most likely covered under the essential activities definitions.
Please make sure you follow industry standards and state/federal/local guidelines for assuring your tenants and workers are safe, your facilities are deep-cleaned, and your workers and subcontractors are maintaining precautions to stop the spread of Coronavirus. At a minimum provide handwashing stations and sanitizer where permanent bathroom facilities are not available (or augment them), maintain a safe social distance, avoid groupings of people, and take other measures appropriate for your situation.
Here are the main line items impacting our members from California’s updated “Essential Critical Infrastructure Workers”:
• Workers to ensure continuity of building functions
• Security staff to maintain building access control and physical security measures
• Support required for continuity of services, including janitorial/cleaning personnel
• Construction Workers who support the construction, operation, inspection, and maintenance of construction sites and construction projects (including housing construction)
• Workers such as plumbers, electricians, exterminators, and other service providers who provide services that are necessary to maintaining the safety, sanitation, and essential operation of construction sites and construction projects (including those that support such projects to ensure the availability of needed facilities, transportation, energy and communications; and support to ensure the effective removal, storage, and disposal of solid waste and hazardous waste)
• Commercial Retail Stores, that supply essential sectors, including convenience stores, pet supply stores, auto supplies and repair, hardware and home improvement, and home appliance retailers’ stores, auto supplies and repair, hardware and home improvement, and home appliance retailers
• Workers supporting groceries, pharmacies, and other retail that sells food and beverage products, including but not limited to Grocery stores, Corner stores and convenience stores, including liquor stores that sell food, Farmers’ markets, Food banks, Farm and produce stands, Supermarkets, Similar food retail establishments, Big box stores that sell groceries and essentials
• Restaurant carry-out and quick serve food operations – including food preparation, carry-out and delivery food employees
• Employees and firms supporting food, feed, and beverage distribution (including curbside distribution and deliveries), including warehouse workers, vendor-managed inventory controllers, blockchain managers, distribution
• Maintenance of communications infrastructure- including privately owned and maintained communication systems- supported by technicians, operators, call-centers, wireline and wireless providers, cable service providers, satellite operations, undersea cable landing stations, Internet Exchange Points, and manufacturers and distributors of communications equipment
• Manufacturers, technicians, logistics and warehouse operators, and distributors of medical equipment, personal protective equipment (PPE), medical gases, pharmaceuticals, blood and blood products, vaccines, testing materials, laboratory supplies, cleaning, sanitizing, disinfecting or sterilization supplies, and tissue and paper towel products.
• Private security, private fire departments, and private emergency medical services personnel.
• Workers such as plumbers, electricians, exterminators, and other service providers who provide services that are necessary to maintaining the safety, sanitation, and essential operation of residences.
Click here for a full Essential Critical Infrastructure Workers List
We thank Governor Newsom for clarifying this list and working to stop the spread of the virus while thoughtfully assuring our state is positioned to hasten recovery as soon as the threat is abated.
If you have any questions, or have intel or reports about relevant local, state, or federal policy, please let us know.
FEDERAL STIMULUS
The President has just signed the CARES Act, the $2 trillion coronavirus relief bill. Federal funds are on the way to help with this crisis. Below are links to summaries we have so far from our partners in Washington D.C., including ICSC, NAIOP, BOMA International. As we get more summaries, we will post to our resources page.
ICSC
NAIOP
BOMA
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 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
