In This Issue:
State Tuned:
Leasehold Extension Included in Senate War Appropriations Bill
A one-year extension of the 15-year timeline for depreciating leasehold improvements was included as part of a Senate emergency war appropriations bill that was passed prior to the spring recess. If not extended, tenant improvements will return to a 39-year depreciation schedule in 2008. The Senate initially included only a 3-month extension along with other tax relief provisions designed to assist small businesses that may have difficulty in adjusting to an increase in the minimum wage. The one-year leasehold extension and the other small business tax relief provisions along with the minimum wage increase were included in the appropriations bill, H.R. 1591. It is unclear what the future hold for this bill, as it includes the controversial deadline for withdrawing U.S. troops from Iraq and has led the President to threaten to veto. BOMA International will continue to advocate for the extension and ultimately permanency of the 15-year leasehold depreciation schedule.
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Fire Sprinkler Incentive Legislation Reintroduced
Representative Jim Langevin (D-RI) reintroduced the Fire Sprinkler Incentive Act of 2007, which creates tax incentives for property owners to retrofit buildings with automatic fire sprinkler systems. First introduced in the 108th Congress, the Fire Sprinkler Incentive Act would reduce the tax depreciation time on nonresidential real property from 39 years to only 5 for those that install sprinklers thus increasing the incentive for commercial property owners to retrofit existing buildings with this important but costly safety feature. Currently with 24 cosponsors, H.R. 1742 was referred to the Committee on Ways & Means. BOMA will continue to urge Congress to pass this bill in order to make fire sprinkler retrofits more affordable.
Contact: Jason Todd, (202) 326-6356, jtodd@boma.org
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Brownfields Expensing Bill Introduced
Legislation that would make permanent the expensing of certain environmental remediation costs in the development of land was recently introduced into the 110th Congress. The bill, H.R. 1753 sponsored by Representatives Xavier Becerra (D-CA) and Jerry Weller (R-IL), would also include clean-up costs associated with petroleum contamination already in the current law that is set to expire at year's end. The bill also would eliminate the recapture requirement on sale of the property. BOMA will work with industry partners to help move this important bill through the legislative process.
Contact: Jason Todd, (202) 326-6356, jtodd@boma.org
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Senate Hears Testimony and Introduces Employee Free Choice Act
The Senate Committee on Health, Education, Labor and Pensions heard testimony last week on the poorly-titled Employee Free Choice Act (EFCA). Shortly thereafter the Committee introduced its own version of the bill. Senator Edward Kennedy's (D-MA) version, S. 1041, is the same as the one passed by the House of Representatives earlier this year, largely along party lines. The bill would require union recognition by an employer once 50 percent of the employees sign cards that state they support the union act as their bargaining agent. The bill has 47 cosponsors, all of which are Democrats. Those Democrats that chose to remain off the bill initially are Blanche Lincoln (AR), Ben Nelson (NE), Mark Pryor (AR) and Ken Salazar (CO).
BOMA is working to oppose this bill through the Coalition for a Democratic Workplace. The EFCA opens employees up to undue intimidation and coercion during the unionization process as opposed to a secret ballot election where worker freedom to choose is protected by a process overseen by the National Labor Relations Board. For more information on the coalition, visit http://www.mysecretballot.com/.
Contact: Jason Todd, (202) 326-6356, jtodd@boma.org
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BOMA Will Participate on ANSI-ICC/NAHB Green Building Standards Committee
BOMA Vice President of Codes, Standards & Regulatory Affairs, Ron Burton, has been chosen to serve as a voting member of a new committee that will soon begin development of a Green Building standard under the auspices of the American National Standards Institute (ANSI). This standards development effort is co-sponsored by the International Code Council and the National Association of Home Builders. The working draft document will be NAHB's "Model Green Home Building Guidelines" but the standard will also encompass multi-family structures, including multi-residential units in larger buildings and mixed use projects. The committee will hold its first meeting on April 19-20 in Washington, D.C.
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California Adopts I-Codes
The California Building Standards Commission has voted unanimously to adopt the International Building Code and International Fire Code as the basis for the state's new codes. For the first time in nearly ten years, California will have a complete set of building codes based on the latest national and international model building codes, making use of the most current technologies and methods of construction. The decision comes after an adoption process involving several agencies that make up the Commission representing building and fire officials, architects, engineers, contractors, labor and the public. The IBC and IFC are scheduled to take effect in January 2008. This summer, CBSC is scheduled to begin the process to adopt the International Residential Code.
Contact: Dave Johnston, (202) 326-6357, djohnston@boma.org
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Real Estate Codes Coalition
The Real Estate Codes Coalition met on March 20 at the offices of BOMA International in Washington, D.C. Attending were representatives from NAIOP, American Hotel and Lodging Assn., National Multi Housing Council, and IFMA. The purpose of this meeting was to review the most significant code change proposals pending before the International Code Council (ICC) and how those proposed changes, if adopted, would affect those with an equity interest in real estate. The coalition was also briefed on the procedures for ICC's "Final Action Hearings" to be held May 18-26 in Rochester, New York by Ron Burton, BOMA's vice president for codes, standards and regulatory affairs, and BOMA's code consultant, Larry Perry, AIA.
The advantages and disadvantages of an electronic voting process that ICC will try for the first time in Rochester was discussed. There was extreme concern any electronic voting mechanism must allow recorded votes so that votes by code and fire officials could be made available to the public. Coalition members agreed that ICC should ensure that each vote will be recorded and published as part of any electronic voting mechanism both in Rochester and going forward.
The Coalition also discussed the use of remote voting that has been suggested by some members of the ICC leadership. Adoption of remote voting would allow building and fire officials to cast their votes via a webcast of the ICC hearings rather than being required to attend the hearings. Coalition members were unanimous in their opposition to the use of remote voting since there were too many opportunities for abuse at the present time. Position statements on these two issues will be circulated among the members of the coalition for formal adoption.
Contact: Dave Johnston, (202) 326-6357, djohnston@boma.org
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ICC Strategic Industry Partners Meet
The quarterly meeting of the ICC Strategic Partners was held on March 30 in Washington, D.C. In addition to BOMA, ICC Strategic Partners include the National Multi Housing Council, the National Association of Home Builders and the American Institute of Architects. Representing ICC was Dominic Sims, chief operating officer. The principal topic of concern was the voting procedures ICC would use during its upcoming Final Action Hearings in Rochester, New York.
The Partners unanimously agreed that the electronic voting mechanism that will be employed during the Rochester hearings had the potential to both slow down the process and lessen the transparency traditionally ensured by standing counts for final votes on controversial issues. The Partners asked that the ICC Board of Directors approve a recent proposal by the ICC Industry Advisory Committee to only use the electronic voting procedures when voice votes were not definitive or hand counts proved inconclusive. Dominic agreed to present the concerns of the Strategic Partners to the ICC Board during their upcoming meeting on April 13.
Contact: Dave Johnston, (202) 326-6357, djohnston@boma.org
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BOMA Participates in Alliance for Building Regulatory Reform
The Alliance for Building Regulatory Reform in the Digital Age is a public-private partnership dedicated to helping local, county and state governments streamline their building codes and planning administrative and enforcement processes. Participants include national associations, government agencies, and private sector businesses in the construction and information technology industries. BOMA has been involved since the inception of the Alliance as part of the Steering Committee that includes representatives from FIATECH, AIA, the National Association of Home Builders, the U. S. Conference of Mayors, and the National Association of Counties.
Representatives from state and local government, construction and information technology firms, and associations representing segments of the construction, building owners, and insurance industry participated in the first Streamlining Conference hosted by the Alliance on February 15-16 in Washington, D.C. The conference included presentations by state and local governments that have instituted streamlining initiatives in their regulatory process as well as case studies by companies like Intel and Target that have worked with local governments to dramatically reduce the time required to move their construction projects through the regulatory process. Participants also identified a list of products to be developed over the next 12 months that enable more jurisdictions and the public/private sector to:
- Improve the effectiveness and efficiency of regulatory oversight for buildings and construction projects,
- Dramatically reduce the amount of time to move a construction project through the regulatory system,
- Increase the uniformity, effectiveness and efficiency of building codes that are adopted and enforced to increase buildings resistance to future damage from major natural events such as wind storms, earthquakes and floods, and
- Speed disaster response and recovery through effective applications of information technology.
The first set of products the Alliance will develop includes a "Streamlining Toolkit" containing one-page summaries and links to access a wide range of streamlining tools and materials that have been successfully applied in jurisdictions across the U. S. Also on tap for development is a "Streamlining Roadmap for Communities" to guide local governments through the steps needed to improve the effectiveness and efficiency of regulatory oversight, a "Guide to Negotiation with Large Clients/Companies interested in Building in Your Community," and a "National Model Plan Review Document for Replicable Buildings". These materials will be available to BOMA members through BOMA's participation in the Alliance.
Contact: Ron Burton, (202) 326-6350, rburton@boma.org
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State Tuned:
San Francisco Mayor Appoints BOMA Representatives to Green Building Task Force
San Francisco Mayor Gavin Newsom recently appointed two BOMA representatives—Ken Cleaveland, BOMA San Francisco's director of government and public affairs and Ken Seibel of Tishman Speyer Properties—to a special Green Building Task Force to study ways in which the city can incorporate green building standards into its building requirements. The first meeting was held March 15; and its goal is provide the Mayor with recommendations on possible new incentives, as well as other voluntary or mandatory requirements within 60 days. Other members of the task force include representatives from the design and construction communities, and the city's Building Department, Planning Department and the Department of Environment.
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BOMA/Metropolitan Detroit Lobbies Lansing
On March 20, members of BOMA/Metropolitan Detroit traveled to Lansing to lobby the Legislature on a variety of issues including tax reform, energy issues, proposed construction liens and mold. Participants met with several key lawmakers on both sides of the aisle. Much of their discussions focused on the Legislature's proposed tax policies which were actively being debated in closed chambers that day. The direct contact with their state officials allowed BOMA/Metropolitan Detroit to increase its presence in the state capitol and establish beneficial relationships with lawmakers.
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CapWiz Grassroots Advocacy Training Available to BOMA Local Associations
Using the CapWiz State module, BOMA local associations have successfully mobilized their members to make their voices heard at all levels of state and local government across the country. BOMA International staff will be hosting a CapWiz training session at the Annual Meeting in New York for those in need of a refresher course as well as those new to the program.
CapWiz State establishes the connection between your issues, members and lawmakers in a variety of ways, including:
- Action Alerts that enable your members to contact their elected officials to express their stand on a variety of issues.
- A message feature which can be used to announce an upcoming Advocacy Day or meeting.
- An online grassroots list manager for building an activist list that your organization can call on for existing and future campaigns
- A comprehensive listing of state and local officials, their bios, staff listings and contact information.
Contact: James Cox, 202-326-6364, jcox@boma.org
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There's Still Time to Host an Advocacy Day
A strong advocacy program is built on relationships with those individuals who make and enforce laws impacting our industry. Advocacy Day 2007 is a time for your association to participate with other BOMA local associations around the country in reaching out to government officials at both state and local levels. Many officials are new to the world of politics thanks to term limits. This provides you with a chance to educate them about the issues impacting the commercial real estate industry and serve as their "go to" person on matters that may affect your business during their time in office. Typical Advocacy Days can include lobbying events at your state capitol, receptions or inviting a public official to speak at your association's monthly luncheon. Don't miss this opportunity!
BOMA International encourages you to get your message out to elected and regulatory officials. Please contact James Cox for the Advocacy Day 2007 packet.
Contact: James Cox, (202) 326-6364, jcox@boma.org
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