Latest News

• COMMERCIAL EVICTION BILL AMENDED – NEEDS FURTHER CHANGES
• CA HAS LARGEST SMALL BUSINESS RELIEF PROGRAM IN NATION
• $12B ANNOUNCED FOR HOMELESS ISSUES
• ENERGY COMMISSION RELEASES PROPOSED CHANGES
• CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT – REGISTER NOW
• CBPA 2021 CALENDAR

COMMERCIAL EVICTION BILL AMENDED – NEEDS FURTHER CHANGES

Last week, AB 255 (Muratsuchi) was amended to address several concerns expressed by our industry along with a 26 member coalition of various business association. The amendments removed some of the more egregious language that would allow one business to unilaterally decide not to pay a valid contractual expense.

The bill now allows a business to use COVID-19 economic hardship as an “affirmative defense” as part of an unlawful detainer proceeding.

Click here to read the AB 255 current coalition letter.

Although the amendments did address some concerns in the bill, and we appreciate the work the committee staff and the author’s office put into it, there remain issues that need to be addressed.

Our coalition continues to agree with the author that the state mandated COVID-19 shelter-in-place orders have had negative impact on businesses of all types, but we fundamentally do not agree with the approach this bill takes to address the issue. All other relief measures provide state and/or federal funds, which the state has received in the billions. AB 255 contains no state funding assistance and instead shifts the burden to assist from one business from another.

The state’s own COVID-19 Small Business Relief Grant (SB 87) allows small businesses the ability to receive state assistance while prioritizing their own fiscal needs. With more funding that program can immediately help the same businesses targeted in AB 255 without creating negative unintended consequences. And since that program, the Governor has announced BILLIONS more in tax relief and direct funding for small businesses. These programs will accomplish what AB 255 seeks to do without a complicated court proceeding.

We think the Governor and Legislature’s approach is the most appropriate and best way for the state to assist the businesses having issues related the COVID economic closures; not inserting new rules into existing business contracts and court proceedings.

However, we do understand that our industry can be helpful pushing through this and getting the state back open as soon as possible, so we have offered amendments that will address several technical issues with the bill. If these amendments are accepted our coalition will remove its opposition to the bill.

See the story below about the all the funding going to small businesses for relief from this pandemic. AB 255 is completely unnecessary in the face of the historic and unprecedented levels of direct government support.

We will keep you posted and thank you for your help!
 

CA HAS LARGEST SMALL BUSINESS RELIEF PROGRAM IN NATION

California has the largest small business relief program in the nation after more funding and programs were announced yesterday by the Governor.

California has now dedicated more than $10 billion dedicated to small businesses through direct relief ($4 billion) and targeted tax relief ($6.2 billion).

According to the Governor’s Office, approximately 198,000 small businesses and nonprofits either have been or will be awarded grants, which includes finalized awards for 43,874 small businesses and nonprofits representing all 58 California counties for a total of $475 million. 

The Governor is now expanding this program to ensure that even more small businesses can access help as we head towards a full statewide reopening on June 15.

Here are the all the programs highlighted by the Governor that are dedicated to small helping small business. None of these programs are targeted specifically to those that own and/or lease commercial real property, but we applaud all the effort going to help stabilize these businesses:

From the Office of Governor Newsom, here are the major programs dedicated to small business relief:

LARGEST SMALL BUSINESS GRANT PROGRAM IN THE COUNTRY: An additional $1.5 billion for the California Small Business COVID-19 Relief Grant Program, bringing the total investment to $4 billion.

LARGEST STATE SMALL BUSINESS TAX CUT IN THE NATION: Governor Newsom signed a $6.2 billion tax cut for those that received Paycheck Protection Program (PPP) loans, allowing them to keep more money in their pockets.

UNPRECEDENTED SUPPORT FOR SMALL BUSINESS FINANCING: Estimated $895 million from the State Small Business Credit Initiative, which works to strengthen state programs that support financing of small businesses.

MASSIVE EXPANSION OF CALCOMPETES TAX CREDIT: Increasing the tax credit to $360 million, and establishing a $250 million CalCompetes grant program, to incentivize businesses to relocate to California.

SUPPORTING CALIFORNIA’S PORTS: $250 million to address revenue impacts on ports to drive economic activity, goods movement, and regional employment.

PROMOTING GREEN SMALL BUSINESS: $200 million to expand sales tax exclusions through the California Alternative Energy and Advanced Transportation Financing Authority to promote, grow and incentivize green manufacturing in CA.

TAX CREDITS FOR HIRING AND RETAINING EMPLOYEES: $147 million for the Main Street Small Business Tax Credit to assist small businesses that have hired and retained workers since the second quarter of 2020.

JUMPSTARTING TOURISM: $95 million to allow California’s tourism industry, one of the largest economic drivers in the state, to come roaring back from the pandemic.

MITIGATING THE SALT DEDUCTION: Small businesses can recoup some of their tax benefits lost from the 2017 the State and Local Tax (SALT) deduction.

Click here to read the full press release.

If you or a tenant are struggling with COVID-19 related issues, click here for more information about resources that may be able to help.

$12B ANNOUNCED FOR HOMELESS ISSUES

The Governor has also unveiled a $12B plan to address homelessness, with the lofty goals of providing 65,000 people with housing placements, 300,000 people with housing stability and create 46,000 new housing units.

This is all part of aggressive actions the Governor is proposing to get the state back on track after more than a year of COVID-19 related shutdowns. Under the California comeback plan, with the tagline “California Roars Back,” the Governor is seeking to “functionally end family homelessness within five years through a new $3.5 billion investment in homelessness prevention, rental support and new housing opportunities for people at risk of homelessness. To achieve this, the Newsom Administration is investing $1.85 billion in new housing for homeless families and $1.6 billion in rental support and homelessness prevention for families.”

Click here for more info.

ENERGY COMMISSION RELEASES PROPOSED CHANGES

Yesterday the California Energy Commission released its proposed changes for the 2022 Energy Code. It is a 548 page document and will impact all aspects of energy use in commercial buildings. Our industry has participated in many hours of meetings and hearings providing input and recommendations and fighting some very expensive ideas.

This is a massive document with lots of technical changes. We are working to read and identify issues with the proposed changes to prepare for the first hearing that will begin soon.

In the meantime, to give you a head start, below find a link to the document hot off the presses. We hope you will send to your own experts and consultants and provide feedback on issues of concern.

Express Terms 2022 Energy Code, Title 24 Parts 1 and 6

CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT – REGISTER NOW

The California Commercial Real Estate Summit (CCRES) will be held from 1:00 pm to 4:00 pm via Zoom on June 8, 2021. This event is the one time of year that industry leaders from all sectors of the commercial, industrial, and retail real estate industry gather and discuss the issues that impact the way we do business in California. The summit gives you an opportunity to hear from state-wide elected officials, leaders in the State legislature, and industry leaders. 

CBPA understands that the Commercial Real Estate community needs to stay active and involved because legislation and policy that affects us all will still be marching forward, whether we are meeting in person or not. The opportunity to hear from our elected officials every year during this event is vital. Now more than ever, we need to make sure the business community is sitting at the table with the Legislature and Administration to help guide decision making.

You must register in advance to attend. After registering, you will receive a confirmation email containing information about joining the webinar.

CLICK HERE to register!

Sponsorship opportunities are available! Please contact Melissa Stevens at 916-443-4676 or mstevens@cbpa.com for more information.

CBPA 2021 CALENDAR

Tuesday-Wednesday, June 8 – 9, 2021
California Commercial Real Estate Summit
& CBPA Annual Board Meeting
Zoom

Thursday, October 21, 2021
Industry Awards Dinner
The Renaissance Hotel, Newport Beach

Thursday-Friday, December 2 - 3
Strategic Issues Conference & CBPA Board Meeting
Embassy Suites, Napa Valley

For more information on any of our events, please contact Melissa Stevens at 916-443-4676 or mstevens@cbpa.com.