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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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?

8. 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

9. 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

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

11. 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

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

13. 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…

14. 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?

15. 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, %

16. 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

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

18. 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

19. 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

20. Denver bathroom signage

21. 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

22. 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