In this Issue:
BOMA International Prepares to Move
1101 15th St, NW, Suite 800,
Washington, DC 20005 Effective December 17, 2007 our new address will be:
1101 15th St, NW, Suite 800,
Washington, DC 20005
BOMA International phone numbers, fax numbers and e-mail addresses will remain the same. | |
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Energy Bill Compromise Complete
Any day now, both the House and Senate are expected to vote on the compromise energy bill that congressional negotiators completed on November 30. The new legislation represents weeks of negotiation between the House and Senate and combines provisions from several bills passed previously – H.R. 6, H.R. 2927, and H.R. 3221.
The bill includes a wide-range of provisions, including fuel economy standards for cars and light trucks, and it would require utilities to increase their production of electricity from renewable sources. At this time, outlook for final passage is uncertain, especially in the Senate where several key Republicans have voiced their opposition to the bill, claiming that higher future energy costs will result without achieving the desired goals of increased energy independence.
BOMA International was engaged in advocating on two provisions of interest to real estate; BOMA actively supported a five-year extension of the energy efficient commercial buildings tax deduction and opposed a provision calling for arbitrary targets in energy efficiency standards. We are cautiously optimistic that our arguments were heeded.
Contact:
Karen Penafiel
kpenafiel@boma.org
202-326-6323
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Tell Your Senators to Oppose Tax Increase on Commercial Real Estate
After requesting your help in the House last month, BOMA International now needs your help to tell the Senate to oppose legislation that would increase the tax rate on real estate investment managers’ carried interest. The Temporary Tax Relief Act of 2007 (H.R. 3996) would more than double the tax rate on carried interests—and permanently and fundamentally alter the taxation and return of many real estate transactions—to help pay for a one-year Alternative Minimum Tax (AMT) “patch” for middle-income taxpayers. The carried interest tax hike would affect millions of Americans in partnerships of all types and sizes. Carried interest is the compensation given to the general partner at the end of a successful real estate deal for the intangible assets, assumption of significant risk and their intellectual capital as part of arranging and operating the real estate venture. Currently, carried interest is taxed like a capital gain at the 15% rate. The House-passed bill changes its tax treatment to that of ordinary income, which for most would be a 35% rate.
The bill also proposes additional tax relief for individuals and would extend for one year a number of expiring individual and business tax provisions (including BOMA-supported 15-year leasehold improvement depreciation and brownfields expensing). These provisions were also part of a much larger tax bill introduced by Ways and Means Committee Chairman Charles Rangel (D-NY) deemed the “mother of all tax reforms” that will be considered in 2008.
The Senate is expected to consider this tax bill early in December. BOMA International needs you to act now to tell your Senators the negative impact a tax increase will have on commercial real estate investment. To write your Senators, visit the BOMA Legislative Action Center today.
Contact:
Jason Todd
jtodd@boma.org
202-326-6356
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BOMA Readies for Pivotal ICC Code Hearings in 2008
The 2007-2008 code development cycle for the International Code Council (ICC) is now underway. The first hearings on proposals to change the existing (2006 edition) codes are slated for Feb. 18-March 1 in Palm Springs, California. Almost 1,900 proposals to modify the thirteen ICC code documents will be heard, over 1,600 of which have potential for significant negative impact on buildings owned and managed by BOMA members. All changes approved during the 2007-2008 cycle will be included in the 2009 editions of the ICC codes.
BOMA International is gearing up to vigorously defend the interests of BOMA members, but we need your help. We have submitted several code change proposals to amend or roll back changes approved during the 2006-2007 cycle, including elimination of a requirement to provide an extra stairway for buildings over 420 ft. in height. BOMA also will be fighting to defeat a number of proposals requiring unnecessary and costly new requirements for commercial buildings without adequate justification, including special terrorism risk assessments for high-rise buildings and arbitrary 30 percent increases in the stringency of the energy code with no cost impact analysis.
BOMA International needs your assistance to protect the interests of BOMA members. Contact Ron Burton rburton@boma.org or Dave Johnston djohnston@boma.org to find out how you can help.
To learn more about the code change cycle and to download proposals scheduled for debate in February, visit the ICC web site at www.iccsafe.org/cs/codes.
Contact:
Ron Burton
rburton@boma.org
202-326-6350
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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. BOMA has been involved since the inception of the Alliance as part of the steering committee that includes representatives from the American Institute of Architects, National Association of Home Builders, U. S. Conference of Mayors, and the National Association of Counties.
The Alliance has developed 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. Currently under 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
rburton@boma.org
202-326-6350
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Reminder: Real Estate Information Sharing and Analysis Center to Test National "Alerts" System
This is a reminder—in December, the Real Estate Information Sharing and Analysis Center (REISAC) will be conducting a test of its national Alerts system. You will receive an email as part of this test. To help prevent the Alert from getting caught in your spam filter, please add alert@reisac.org to your email address book. BOMA International is one of the 13 organizational members of the REISAC. Through the REISAC, BOMA works with the U.S. Department of Homeland Security to prevent, detect and respond to terrorist threats and incidents.
At the request of the federal government, the REISAC disseminates urgent informational alerts to building owners and operators across the country. These alerts are only sent when the government determines there is a high level of urgency to the threat or warning information. Past alerts typically coincided with the raising or lowering of the terrorist threat level for the nation as a whole, or all or parts of various industries, and have included action-oriented information such as steps to protect people and property. There were no alerts issued in the last 12 months.
As a member of BOMA International, you are automatically on the list to receive these alerts via email.
If you have any questions about the REISAC, please visit www.reisac.org or contact Dave Johnston at BOMA International.
Contact:
Dave Johnston
djohnston@boma.org
202-326-6357
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NCPC Launches New Web Site
The National Catastrophe Policyholders Coalition (NCPC) has launched their new Web site, featuring facts about natural catastrophe insurance, comments and quotes from influential members of congress and natural catastrophe insurance policyholders, as well as links to related news articles. The site is a great resource for those who have an interest in learning more about the policyholders’ perspective on the natural disaster insurance issue.
The National Catastrophe Policyholders Coalition is an alliance of groups, including BOMA International, joined together to address issues related to the availability and affordability of natural catastrophe insurance. NCPC members include a broad range of residential, multifamily, and commercial property owners, as well as business and financial services interests. You can access the site at www.natcatcoalition.org/.
Contact:
Lindsay Tiffany
ltiffany@boma.org
202-326-6365
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State Tuned:
Security Guard Unions and Building Owners Negotiate New Contracts in San Francisco and L.A.
Office building owners and unions representing security guards in both San Francisco and Los Angeles are looking at signing new contracts that would grant security guards higher wages and enhanced healthcare benefits. In Los Angeles, the pact building owners and the Service Employees International Union (SEIU) are negotiating would be the first-ever union contract of its kind in California. It would cover 4,000 L.A. security guards, most of whom earn an average of $21,000 per year. The San Francisco branch of the SEIU is also working to gain benefits for about 4,000 security guards in San Francisco and the Bay area.
The majority of building owners support the new deals and are working to come up with a contract that would both enhance the quality of life of the security guards and ultimately add value and improve quality for building tenants. Parties in both cities hope to reach an agreement by the holidays.
Contact:
Karen Penafiel
kpenafiel@boma.org
202-326-6323
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Contact Us
BOMA International
Advocacy Division
Suite 300
1201 New York Avenue, NW
Washington, DC 20005
Web site: www.boma.org/advocacy
E-Mail: currents@boma.org
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