Latest News

• Commercial Real Estate Groups Support Hime For Senate
• Commercial Energy Code Work Begins
• State Takes Action With Another City On Housing
• By The Numbers: Governor’s Housing Goals Are Aggressive
• Bill Expanding Lactation Accommodations Reintroduced
• New Lactation Requirements For Employers

COMMERCIAL REAL ESTATE GROUPS SUPPORT HIME FOR SENATE

In the past week two major commercial real estate groups have endorsed Rex Hime in his run for Senate District 1, with both BOMA California and NAIOP California giving their long-time advocate an official stamp of approval.  

NAIOP California represents the six California Chapters of NAIOP The Commercial Real Estate Association and provides legislative and regulatory advocacy for the group’s thousands of member companies statewide.

Building Owners and Managers Association of California (BOMA California) is a statewide organization whose mission is the preserve and promote the interests of California commercial real estate professionals through legislative and regulatory advocacy.  BOMA California is a federation of the eight metropolitan local associations in California and has thousands of members statewide.

Rex S. Hime who has been the primary force in California advocating on behalf of California taxpayers who own commercial, industrial, and/or retail private property for over 35 years in his role as President and CEO of California Business Properties Association has answered the call of public service and filed paperwork to fill the seat of the district he has lived in for decades.

Rex has long talked about the importance of people from within the commercial real estate industry stepping-up and getting involved in elective politics.  He is putting those words into action.   

Former-Governor Pete Wilson, and the Founder and President of the National Tax Limitation Committee Lew Uhler, are serving as Rex’s Campaign Chairs. Rex has also quickly garnered many endorsements including two former Senators who previously held the seat, Senator Tim Leslie (ret.) and current Congressmember John Doolittle.

Senate District 1 is a massive district stretching all the way from the Eastern part of Sacramento County, to Lake Tahoe, then all the way up to the Oregon border stretching to the middle of the State and back down.  The district is known as one of the most conservative areas of the state.   

For more information about Rex’s run for California Senate District 1 click here REX HIME FOR SENATE

COMMERCIAL ENERGY CODE WORK BEGINS

The California Energy Commission will begin work on the 2023 Standards next week, kicking off with a meeting of representatives from Industry and other stakeholders.  2023 is not a misprint. 

The California Energy Commission has already kicked off the development of the next set of energy efficiency building standards and if they stay on track, this set of regulations will take effect on 1/1/23. 

On Monday, CEC staff will meet with CBPA, BOMA, NAIOP, ICSC, IREM and CBIA staff to summarize the issues that will be addressed in the forthcoming rulemaking. 

In spring of last year, the CEC adopted the nation’s first solar mandate for low-rise residential construction and that will take effect in January of 2020.  For the 2023 standards, the CEC has already indicated their primary attention will focus on high-rise residential, commercial buildings and the existing building stock.  Related topics will be covered at CEC workshops scheduled to take place from June 2019 – March of 2020. 

This will have a huge impact on your new construction and tenant improvements.  We are asking our members to identify experts – and funding for technical work – to help with this work.  Updates will be provided as proposed changes begin to take shape. 

STATE TAKES ACTION WITH ANOTHER CITY ON HOUSING

According to the San Diego Union-Tribune a state agency has told another local government that it needs to take action to address affordable housing issues.  Last week the State filed a lawsuit against Huntington Beach to force more affordable housing; we now learn that the City of Encinitas has been told to “amend or invalidate” an anti-growth ordinance passed by voters in 2013 because it conflicts with California laws. 

According to the newspaper the city received a letter from the Department of Housing and Community Development (HCD) stating that the city’s Proposition A passed by city voters in 2013 and requires a vote every time a developer proposes changing zoning or increasing density, violates state law.

This is a continuation of what seems to be a very aggressive stance by newly minted Governor Gavin Newsom to address the state’s housing crisis.  See below for more information on the incredibly high goals set by the new administration.

Click here to read the full story about the threat sent to Encinitas to invalidate its anti-growth measure.  

BY THE NUMBERS: GOVERNOR’S HOUSING GOALS ARE AGGRESSIVE

Although the unprecedented action outlined above has some “wow factor” in its audacity, it should be no surprise to anyone that paid attention the campaign, or has paid attention to the housing market.  Our state is not producing enough housing – at either end of the scale – and that has negative ramifications as supply is low and costs are outrageous. 

But to put it all into perspective, here is the housing goals outlined by the Governor along with some historical context:

3.5 million units proposed over 8 years
Averages 425,000 units constructed per year

The most units ever built in a single year was 1963 with 331,000 homes.  1963 was well before CEQA, project labor agreements, and emboldened NIMBY groups existed.

In 2018, California built approximately 120,000 units.

In his first budget, Governor Newsom proposed extraordinary support and assistance for cities to create the conditions for new housing production and help meet local housing needs. His budget allocates $500 million for incentives for cities that allow for new housing production and $250 million to provide technical assistance for cities to responsibly ramp up zoning and permitting processes. The Governor’s budget also includes another $1 billion in other funding for housing construction.

As well, in addition to housing element lawsuits, the Governor has threatened to withhold transportation funds.

As you can see this is a very aggressive goal based on historical patterns.  Bold, audacious action will be needed to meet the challenge.

BILL EXPANDING LACTATION ACCOMODATIONS REINTRODUCED

In 2018 two bills expanding lactation accommodation requirements for building owners were introduced in the legislature. On behalf of the commercial real estate industry we negotiated a compromise on one and asked Governor Brown to sign it, AB 1976 (Limon; D-Los Angeles).  That bill is now law and requires an employer to make reasonable efforts to provide an employee wishing to express breast milk in private with an area in close proximity to her workspace that is not a bathroom.

The other bill, which requires that all buildings maintain exclusive lactation areas, regardless of having a need to accommodate an employee or not, was been vetoed.   But it is back. Senator Scott Weiner (D-San Francisco) has reintroduced the bill as SB 142.

SB 142 specifies that the lactation room must include several prescribed features and that an employer must also provide access to a sink and refrigerator. Additionally, the proposal imposes new building standards by requiring the California Building Standards Commission to adopt new rules that require the installation of lactation space for certain new or remodeled buildings, provisions that had been subsequently removed from last year’s bill as it moved through the legislative process.

Unfortunately the provisions of SB 142 are not only redundant, but can be extremely expensive, in construction costs and lost opportunity cost when the space is not needed. 

NEW LACTATION REQUIREMENTS FOR EMPLOYERS

Here is an informative article about the new requirements placed into law by AB 1976, the bill that now requires an employer to make reasonable efforts to provide an employee wishing to express breast milk in private with an area in close proximity to her workspace that is not a bathroom. 

This lactation accommodation requirement is focused on the employer, so it may or may not fall onto you as a manager or an owner, but we recommend that you become familiar with the law so you can accommodate tenants in need.

For more information about the new lactation requirements click here.