Impact of California Environmental Quality Act on Real Estate

In 2015, a new ordinance was passed that will force thousands of Los Angeles, California, building owners to make sure their buildings comply with new earthquake structure resistance standards. This comes after much pushing by the Mayor, Eric Garcetti, to improve the resiliency of the City of Los Angeles, if a major earthquake were to happen.

Ensuring Buildings are Up to Current Standards

The Department of Building and Safety must first order the building to update to current standards before the property owners require action. Owners who do receive a notice must provide proper evidence that their buildings are safe. If their buildings are deemed troublesome, the owners must cover the cost of retrofitting their buildings up to standard.

The new ordinance applies to both, existing non-ductile concrete buildings and wood frame/first story structures. In both cases, a construction permit submitted prior to 1978, would force owners to take action.

Real Estate Market Changes in California

The California real estate market will definitely not be the same. Landlords must notify all tenants that an ordinance of compliance was issued. The state will not reimburse owners for the work to be completed nor will the owners receive any type of tax break. This ordinance, as a result, will be detrimental to owners and landlords. Landlords also have to pay for tenants to relocate as well.

Owners, as well as tenants, should seriously consider consultation from an attorney. Our Palm Springs real estate attorney are a great option.