New Rules and Legislation

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In a further effort to revitalize and reimagine its downtown core, San Francisco’s Board of Supervisors has passed and the Mayor has signed legislation exempting certain residential conversion projects from development impact fees, including the City’s substantial inclusionary housing fee. The legislation exempts projects that replace non-residential uses with residential uses from development impact fees and affordable housing requirements and removes the deadline to apply to the City’s Commercial to Residential Adaptive Reuse Program.Continue Reading San Francisco Further Incentivizes Residential Conversion Projects by Waiving Development Impact Fees

A week after a large-scale fire at the Moss Landing Power Plant in Monterey County,[1] California Assemblymember Dawn Addis (D-Morro Bay) introduced Assembly Bill (AB) 303. If passed, AB 303 – also referred to as the Battery Energy Safety & Accountability Act – will impact the development of large-scale battery energy storage system (BESS) projects in California. Intended to “improve safety standards and restore local oversight for [BESS] facilities in California,”[2] AB 303 will, among other things, limit approval authority to local governmental agencies, require local engagement in the permitting process, and establish mandatory buffer zones between BESS projects and “sensitive receptors.”Continue Reading Understanding AB 303: Potential Impacts for California BESS Project Development

As businesses and legal professionals strive to keep pace with California’s ever-changing regulatory environment, Proposition 65 (“Prop 65”) remains a key focal point. Known for its stringent requirements on chemical exposure warnings, Prop 65 continues to evolve, driven by new legislation, court rulings, and regulatory updates.Continue Reading Prop 65 Year-End Highlights: 2024’s Key Regulatory Changes, Legal Battles, and Enforcement Trends

Yesterday, the Zoning and Franchises Subcommittee (by a vote of 4-3) and Land Use Committee (by a vote of 8-2 and one abstention) approved the City of Yes for Housing Opportunity text amendment (COYHO), with modifications. COYHO is the final piece of Mayor Eric Adams’s City of Yes vision, a trio of legislative packages that seek to modernize and update the city’s zoning regulations (the first being the City of Yes for Carbon Neutrality to promote sustainability, which passed in December 2023, and the second being the City of Yes for Economic Opportunity to support economic growth and resiliency, which passed in June 2024). Continue Reading City of Yes for Housing Opportunity Update

California recently amended its Proposition 65 regulations[1] to add several additional alternative “safe harbor” warning labels for foods containing acrylamide, a naturally-occurring byproduct that can result during high-heat cooking. By adding insights from a recent Ninth Circuit opinion into the legislative mix, California hopes it has crafted the recipe for success in its ongoing First Amendment battle over compulsory Prop 65 warning labels for foods containing disputed carcinogens like acrylamide.Continue Reading California Adds New Options to Growing Menu of Prop 65 Warning Labels for Foods Containing Acrylamide, Citing “Additional Guidance” from the Ninth Circuit

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

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

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

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

The California State Legislature is considering Assembly Bill (AB) 2216, a measure introduced by Assemblymember Matt Haney, that would force landlords to permit pets in residential rental properties. Specifically, the proposed legislation restricts a landlord from barring a tenant from owning or keeping a common household pet without valid justification. The bill also prevents landlords from charging tenants extra rent or security deposits for owning or keeping a common household pet. However, these restrictions do not apply to rental agreements signed before January 1, 2025.Continue Reading Unleashing AB 2216: Will Fido Have a Leg Up on Landlords?