July Advocacy Update
Tuesday, July 11, 2017
by: Julianna Tetlow, California Strategies

Section: Government Affairs

2017 California Commercial Real Estate Summit (CCRES)/BOMA Cal Board Meeting Recap
Last month, members of the BOMA San Diego Government Affairs Committee attended the 2017 CCRES and BOMA Cal Board meeting in Sacramento to learn the latest in state legislative affairs and to lobby legislators in the Assembly and Senate on issues important to the commercial real estate industry.
It was a rare year where the focus of our legislative visits were a number of bills supported by our industry and industry partners. It was a treat to let our policy makers know that we were there to encourage a “yes” vote. The targeted legislation included a reform of the state’s parcel tax notification laws, rebates to assist with the cost of energy storage batteries, support for solar energy solutions, and thanking legislators for the steady progress in ADA reform.
In less exciting news, split-roll and AB 1059 continue to be on our radar.
At this point there is no bill or legislative language for split-roll, however we know that Senators Mitchell and Skinner are going to introduce a Senate Constitutional Amendment (SCA) at some point. What we don’t know is what form the bill is going to take. There are many ways to get at raising property taxes on non-residential property and we are watching out for this carefully. 
Additionally, we learned that AB 1059, the Dual Agency Ban bill, has been sidelined for the year, but is not dead. We anticipate seeing the resurgence of this bill early next year.
BOMA California notes every year that the goal of the California Commercial Real Estate Summit is to increase public policy and political awareness of state issues impacting commercial, industrial, and retail real estate. The summit fosters collaborative efforts among business leaders from all sectors of California and their representatives in the State Legislature.
If you have any questions about statewide legislation or are interested in learning more about the Government Affairs Committee, please contact Julianna Tetlow at jtetlow@calstrat.com.
The BOMA Water and Waste Challenge
Announced at this year’s BOMA International Conference the W2 Water and Waste Challenge is a two-year initiative to encourage commercial real estate practitioners to benchmark water and waste consumption and associated costs, and to implement common practices to improve water performance and reduce waste.
With the support of a generous grant from Yardi, and in partnership with the BOMA Local Associations, BOMA International is proud to launch this Challenge that highlights and expands the sustainability efforts of the commercial real estate industry.
The program will run from January 1, 2018 to December 31, 2019, and participants will be eligible for recognition for their leadership from BOMA International.
For additional information, please contact Ken Rosenfield, BOMA International’s Director of State and Local Affairs, at krosenfield@boma.org or visit www.boma.org/W2.
From the Workforce Housing Files (In Case You Missed It):
Times of San Diego: Huge Demand: San Diego Will Need 73,000 New Apartments by 2030
The San Diego region will need nearly 73,000 new apartment units by 2030 to keep up with demand, according to a study released Monday by the National Multifamily Housing Council and the National Apartment Association.
Demand will be pushed by an aging population, immigration and lower rates of home-buying, according to the report.
Between 2011 and 2016, an average of 1,857 investment-grade units were built annually. By comparison, San Diego will need to average 5,198 units per year in the future to reach the needed level.
Investment-grade apartments are likely to attract attention from large institutional buyers like insurance companies or real estate investment trusts, usually involving larger properties. Nationally, 4.6 million units will have to be built, according to the report.
“Nationally as well as here in San Diego, we’re experiencing fundamental shifts in our housing dynamics, as more people are moving away from buying houses and choosing apartments instead,” said Alan Pentico, executive director of the San Diego County Apartment Association.
“The San Diego metro economy is strong, with migration to the area responsible for almost as much household increase as natural population growth,” Pentico said. “This will help support demand for apartments through 2030.”
Among the study’s other findings:
  • The San Diego metro area will need all types of apartments and at all price points
  • San Diego is ranked 15th out of 50 metro areas in terms of projected apartment demand by 2030
  • There are an estimated 385,710 apartments in the San Diego metro area, with residents that span the age and income spectrum
  • San Diego apartment developers, owners and managers, and their residents contribute $11.9 billion to the local economy annually
Authors of the study said builders will not only need to expand San Diego’s supply of apartments, but renovate or replace older units. Across the U.S., it’s estimated that 51 percent of apartments were built before 1980, mostly in the Northeast.

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