Whats the Government Up To Were just here

What’s the Government Up To? We’re just here to help…really

ADA drive-by lawsuits �ADA provides for civil remedies �Strict liability �Remedies limited to injunctive relief and… �Attorney fees �Masses of lawsuits filed �Using legitimate remedy in extortionate way �ADA is now a due diligence item

Basel 3 capital requirements �Product of 2008 financial collapse �Applies to most banks �Limits loans for acquisition, development of construction of real property �Banks required to increase reserves �Construction loan particularly risky �Banks getting out of construction loan business �Effect – Many banks run out of construction funds in fourth quarter

FASB leasehold accounting �In 2005, $1. 5 trillion in lease debt off book �Businesses must soon report leases on financials �Will make financial statements look worse �Tenants may seek shorter terms �More emphasis in owning over leasing �Challenges in valuation and expense reporting

Tax law changes �Expensing in place of depreciation �Could incentivize major capital items �Originally including expensing entire buildings �Also considered eliminating 1031 exchanges �Pay attention – will affect your business

Brokers and “standard forms” �Real Estate Commission review in 2017 �Limits imposed on what brokers can write �Commission approved forms �Attorney drafted forms �Forms provided by parties �Forms required by government �Bar Association approved forms �Disclosures �Title company forms �Letters of intent

Service animals �Service animal – trained to perform tasks �Assistance animal – assistance or emotional support �New law criminalizes intentional misrepresentation of service or assistance animal �Can only ask two questions: 1. Is the animal required because of a disability? 2. What work or task has the animal been trained to perform?

Using property taxes to upgrade �New Energy Improvement Districts gearing up �Energy improving and conservation costs repaid with property taxes �Up to 100% financing and 20 year repayment �Payment is by voluntary assessment on tax bill �Runs with property and can be assumed �Priority over all other liens �Default collected through tax lien sale �Work must be related to energy efficiency or water saving

Liquor store leases �Expanded number of grocery store locations serving liquor � 5 in 2017, 8 in 2022, 13 in 2027, 20 in 2032 �Must buy out licenses within 1500 feet �Grocery store chains offering to buy out liquor store lease in strip malls �Mom and Pop liquor stores at risk

Month to Month leases �Landlord could terminate on 10 days notice �Negotiating leverage �Hard on residential tenants �New law requires 21 days notice

Sex assault and stalking victims can terminate residential leases �Colorado law allows domestic violence and abuse victims to terminate leases �Law expanded to include victims of unlawful sexual behavior and stalking �Tenant must provide police report or protection order, statement from a medical professional or evidence of inclusion in state’s address protection program �Landlord cannot disclose facts without victims consent �Landlord cannot disclose any forwarding address �Tenant must pay one month’s rent within 90 days

Coming legislation? �Uniform Landlord Tenant Act �Rent control �Charging stations �Homeless use of public spaces

Denver development fees �Fund for affordable housing �Includes half mil property tax increase �Includes fees charged on permit issuance on new construction �Fees range from $. 40 to $1. 70 per square foot depending on type of project �Not supposed to include tenant finish costs, but…

Denver energy plan �Requires reporting energy consumption to Denver �Applies to buildings over 50, 000 feet this year, � 25, 000 square feet next year �Buildings used for industrial or ag are exempt �Had until September 1 to report �Only 34% compliance by late summer �Fines start September 1 �Camel’s nose?

Denver Green Roof Initiative �Ballot initiative on Denver’s November ballot �Requires all Denver buildings over 25, 000 square feet to have percentage of roof dedicated to vegetation and/or solar �Up to 50, 000 square feet – 20% �Up to 100, 000 square feet – 30% �Up to 150, 000 square feet – 40% �Anything over 150, 000 - 50%

Denver Green Roof Initiative �Buildings permitted after January 1, 2018 required to have it in construction �Existing buildings required to install green roofs at time of roof replacement or major repair �Very limited exemptions and exempted buildings must pay fee equal to cost of constructing green roof

Denver Green Roof Initiative �Added costs �Roof design �Roof construction �Maintenance �Roof replacement �Consequential costs � Insurance � Water drainage � Root intrusion � Mold

Denver Green Roof Initiative �Green roof hard costs �Green roof installation is currently about $25 a foot �Irrigation system and maintenance costs �Demolition or relocation of existing infrastructure �Addition of hard infrastructure such as decking, shade structures, planter boxes, etc �Permits for lifts and cranes

Denver Green Roof Initiative �Initiative requires �Root repellant systems �Anti-shear measures �Engineer reports on wind uplift pressures �Leakage testing �Water retention mats �Growing media of at least four inches �$1, 000 a day fines for non-compliance

Denver bathroom signage

Denver Fire Department �Fire Safety Administrator �More than a red hat �Administrator on site at all times? �Standard fire safety protocols for all buildings �Building medallions for certification �Currently being discussed

Growth limits �Lakewood proposal to put 1% cap on building permits �All projects over 40 units would require council approval �Similar statewide ballot initiative approved for signature collection