Despite strenuous opposition from both the state’s real estate and business communities,1 near the end of the 2024 Legislative cycle, California Governor Gavin Newsom signed into law Assembly Bill 98 (“AB 98”) – a bill that, among other things, creates buffer zones and imposes other statewide design and build standards around new warehouse development.2 The bill, which overrides local land use programs, segregates these standards based on warehouse sizes and location within the state. Purportedly, AB 98 is intended to mitigate the negative health impacts associated with warehouse and logistics facility uses have on nearby communities, namely in the Inland Empire region. Prior to the Governor’s signature, the bill passed by fairly narrow margins in both the State Senate and Assembly.Continue Reading A Deep Dive into AB 98’s Restrictions on the Logistics Industry: What the Bill Does and Does Not Do
Westside Mobility Plan Clears the Road of CEQA Challenges
In Westside Los Angeles Neighbors Network v. City of Los Angeles, the Second District Court of Appeals considered and upheld the City of Los Angeles’s (“City”) actions associated with the approval of the Westside Mobility Plan. Specifically, the court upheld: (i) the Los Angeles City Planning Commission’s (“CPC”) certification of the Westside Mobility Plan Environmental Impact Report (“EIR”); (ii) the determination that the Streetscape Plan was categorically exempt from CEQA; (iii) the finding that Westside Los Angeles Neighbors Network (“Network”) failed to show that the EIR was deficient in its analysis of growth inducing impacts or the imposition of certain traffic-related mitigation measures. This should be changed in both the distribution email and the article online.Continue Reading Westside Mobility Plan Clears the Road of CEQA Challenges
Realizing the Potential of Brownfields
Louise Dyble’s article “Realizing the Potential of Brownfields” was recently featured in the in the Fall 2024 issue of NAIOP Commercial Real Estate Development magazine. The article explores the emergence of brownfields in the mid-20th century and government legislation since enacted to address their contamination. The article also examines two current federal programs that support redevelopment of brownfield sites: Environmental Protection Agency-administered competitive brownfields grants and tax incentives and credits. The article also discusses challenges that lie ahead for these properties.Continue Reading Realizing the Potential of Brownfields
Assessing The Practicality of Harris’ Affordable Housing Plan
This article was first published by Law360 on August 28, 2024.Continue Reading Assessing The Practicality of Harris’ Affordable Housing Plan
AI is Changing the Real Estate Industry. How Will It Impact Your Business?
As we stand on the cusp of transformation in the commercial real estate industry, one cannot help but recall the sage words: “With great power comes great responsibility.” In an era marked by technological advancements occurring at a blistering pace, the real estate industry (commercial, industrial, residential, office, hotel and every other class of real estate) stands on the brink of transformation and the seemingly limitless promise and power of generative artificial intelligence (AI) looms large as both a disruptor and a savior. There is no ignoring it, just like virtually every other industry, the real estate industry is changing rapidly through the use of AI, and if you aren’t adapting your business to account for those changes, you are putting your business at significant risk. Traditionally, change in the commercial real estate industry has been akin having an oil tanker make a 180-degree turn – slow, laborious and infrequent. The changes that have been brought upon by AI are more like making a 180-degree turn in a Ferrari – fast, easy and frequent. However, these competitive and rapid shifts, while alluring, come with increased risks and the need to proactively manage those risks. The questions on everyone’s mind are: (i) Can AI really predict the future success of a project, (ii) how trustworthy is AI, (iii) how is AI going to change my business and (iv) what do I need to be worried about? Every day, public and private organizations are working towards answering those questions, not only developing reliable tools, but regulating the use of those tools to insure an even playing field. Continue Reading AI is Changing the Real Estate Industry. How Will It Impact Your Business?
Soil and Security: The Broadening Scope of CFIUS in Real Estate Transactions
As the Committee on Foreign Investment in the United States (CFIUS) continues to expand its jurisdictional reach, investors, property owners, and landlords should be aware of a growing focus on real estate transactions. Bridging a perceived gap between CFIUS’ mandate to safeguard U.S. national security and foreign investment in the U.S. real estate market, the U.S. Department of Treasury recently issued a Notice of Proposed Rulemaking (NPRM) that would strengthen CFIUS’ jurisdiction over real estate transactions. Specifically, the NPRM would greatly expand the list of military installations that could raise national security concerns, empowering CFIUS to review transactions involving the surrounding real estate; and expand the term “military installation” to encompass a larger number of sensitive facilities. These proposed changes are in response to a recent comprehensive assessment conducted by the Department of Defense regarding its military installations, and reflect the perception that real estate transactions in close proximity to sensitive USG facilities may convey strategic advantages to U.S. adversaries.Continue Reading Soil and Security: The Broadening Scope of CFIUS in Real Estate Transactions
Big Streamlining for Small Subdivision Developers
To address the housing crisis in California, Senate Bill 684 (SB 684), passed in 2023 but effective as of July 1, 2024, aims to simplify the approval process for small-scale for-sale housing projects, facilitate a quicker development process, and help to alleviate the state’s housing shortage. Specifically, SB 684 mandates local agencies to ministerially approve proposed subdivisions for housing projects that result in 10 or fewer parcels, provided they meet specific criteria.[1] Applications for up to 10 units as part of a housing development on lots subdivided using this process and for building permits for construction of the units are also ministerial.[2] This streamlined, CEQA-exempt approval process applies to tract maps on lots zoned for multifamily residential development, no larger than 5 acres, substantially surrounded by qualified urban uses[3] and “infill” sites.Continue Reading Big Streamlining for Small Subdivision Developers
Supreme Court Holds That the Eighth Amendment Does Not Prevent Enforcement of Local Camping Bans, Authorizing a Significant Shift in Local Policies on Homelessness
Until recently, local policies on homelessness have been guided by two controversial rulings from the Ninth Circuit Court of Appeals: Martin v. Boise (9th Cir. 2019) 920 F.3d 584 and Johnson v. City of Grants Pass (9th Cir. 2022) 50 F.4th 787.[1] However, the Supreme Court’s decision in City of Grants Pass v. Johnson (2024) 603 U.S. ____, is likely to transform local jurisdictions’ policy approaches to managing homelessness. In a 6-3 decision, the Supreme Court upheld the city’s ban on camping and parking overnight on public property.Continue Reading Supreme Court Holds That the Eighth Amendment Does Not Prevent Enforcement of Local Camping Bans, Authorizing a Significant Shift in Local Policies on Homelessness
Loper Bright and Relentless 101: What Regulated Businesses Need to Know at the Dawn of the Post-Chevron Era
In late June, the U.S. Supreme Court took an important step toward conscribing the power of federal agencies, abandoning the “Chevron doctrine” and its requirement that federal courts defer to agency interpretations of ambiguous federal statutes. The Court’s much-anticipated decision in Loper Bright Enters. v. Raimondo, Sec’y of Commerce and Relentless Inc. v. Dep’t of Commerce, 603 U.S. ___ (2024), requires federal courts to exercise independent judgement to interpret statutory language without deference to the agency responsible for implementing and enforcing the law. The Court’s opinion continues a trend toward less deferential judicial review of agency decision making and is expected to encourage a spate of challenges to federal regulations and other agency actions, potentially providing some relief for regulated businesses.Continue Reading Loper Bright and Relentless 101: What Regulated Businesses Need to Know at the Dawn of the Post-Chevron Era
City Council Approves City of Yes for Economic Opportunity, with Modifications
The New York City Council voted to approve a modified version of the City of Yes for Economic Opportunity (“COYEO”) text amendment, the second in a trio of City of Yes initiatives which aim to: (1) promote sustainability (the City of Yes for Carbon Neutrality, which passed on December 6, 2023); (2) update the City’s zoning tools to support economic growth and resiliency (City of Yes for Economic Opportunity, which passed on June 6, 2024); and (3) spur the development of affordable housing (the City of Yes for Housing Opportunity, which entered public review on April 29, 2024).Continue Reading City Council Approves City of Yes for Economic Opportunity, with Modifications
Status of California Rent Control Reform
It seems like year-after-year, attempts are made to reform or repeal California’s rent control regulations, namely the Costa-Hawkins Rental Housing Act (Civ. Code §§ 1954.50 et seq.) (Costa-Hawkins Act). 2024 has proven to be no different.Continue Reading Status of California Rent Control Reform