UPDATE - BOMA San Francisco's Gross Receipt Tax + New Business Registration Fee Structure

UPDATE - May 29, 2014

BOMA San Francisco Members:

The recent BOMA San Francisco organized Gross Receipts Tax luncheon was quite informative.  Thank you to our guests, Manny Fishman, attorney at law with the firm of Buchalter Nemer, along with Greg Kato, Policy and Legislative Manager with the San Francisco Treasurer's Office.

Resources mentioned during the event:

• A video that explains the Gross Receipts Tax;
• Gross Receipts Tax Worksheet
• Changes to the Business Registration Fee structure - due before May 31, 2014:

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Original Post - May 19, 2014

San Francisco's newly enacted Gross Receipts Tax (GRT) requires that building owners and managers keep detailed records of rents, operating expenses, taxes, and other revenues and costs associated with the ownership and operation of office properties and other business ventures. Investors in and syndicators of real estate doing business in San Francisco have reporting obligations as well.

Our own resident expert on the Gross Receipts Tax, Manny Fishman, attorney at law with the firm of Buchalter Nemer, along with Greg Kato, Policy and Legislative Manager with the San Francisco Treasurer's Office, will offer practical advice on the new forms being distributed by the Treasurer's Office to calculate the GRT as well as how and when your real estate firm needs to comply with the new business tax law. 

This is one BOMA luncheon program you can't afford to miss. Come prepared with your questions about San Francisco's Gross Receipts Taxes and new Business Licensing Taxes.

REGISTER TODAY!

Kilowatt Crackdown Highlighted in Upcoming Webinar on Thursday, June 12, 2014

BOMA San Francisco Members:

The State and Local Energy Efficiency Action Network (SEE Action) is sponsoring a webinar, scheduled for Thursday, June 12 from 3:00 to 4:30 p.m. EST, on energy performance-based policies and programs that encourage and incentivize improved building performance. One of the topic areas that will be highlighted is the Kilowatt Crackdown in the Twin Cities area that is administered by BOMA Minneapolis.  Click here to watch a video of United States Senator Al Franken (Minnesota) praising the program.

Sheila Miller of the BOMA Minneapolis staff will provide an overview of the program’s goals, how it began, how it is administered, what kind of results have been achieved, and how BOMA local associations can start a similar program that can benefit and help their members to attain increased energy efficiency for their buildings and commercial properties. Click here to register for the webinar.

For more information, contact Scott Morris at BOMA International, smorris@boma.org.

BOMA San Francisco Owners' Breakfast

BOMA San Francisco 2014 President Sarah MacIntyre and BOMA International 2014 Chairman, Rich Greninger 

Click here for more pictures on our Facebook page.

San Francisco Planning Director, John Rahaim

BOMA San Francisco Members:

BOMA San Francisco building owners and investors attended a special breakfast on May 20th that highlighted BOMA's value and featured a special presentation: Looking Into the Future of San Francisco. San Francisco Planning Department Director John Rahaim and Joshua Switzky, Acting Director of the Citywide Planning Division were the presenters.  Issues covered included current and historical land use and housing/office development in San Francisco.

It was an honor to have BOMA San Francisco's 2014 President Sarah MacIntyre, BOMA International's 2014 President, Rich Greninger, and Henry Chamberlain, BOMA International's President and COO in attendance.  Thank you to our BOMA members for attending this event - you are the true leaders of the San Francisco/Bay Area commercial real estate industry.

BOMA San Francisco's Gross Receipt Tax Briefing on May 22, 2014

BOMA San Francisco Members:

San Francisco's newly enacted Gross Receipts Tax (GRT) requires that building owners and managers keep detailed records of rents, operating expenses, taxes, and other revenues and costs associated with the ownership and operation of office properties and other business ventures. Investors in and syndicators of real estate doing business in San Francisco have reporting obligations as well. 

Our own resident expert on the Gross Receipts Tax, Manny Fishman, attorney at law with the firm of Buchalter Nemer, along with Greg Kato, Policy and Legislative Manager with the San Francisco Treasurer's Office, will offer practical advice on the new forms being distributed by the Treasurer's Office to calculate the GRT as well as how and when your real estate firm needs to comply with the new business tax law. 

This is one BOMA luncheon program you can't afford to miss. Come prepared with your questions about San Francisco's Gross Receipts Taxes and new Business Licensing Taxes.

REGISTER TODAY!

UPDATE: Planning for Implementation of the San Francisco Gross Receipts Tax

UPDATE - May 19, 2014

BOMA San Francisco Members:

As we have reported previously, the Office of the Treasurer and Tax Collector, starting in 2014, will be implementing the Gross Receipts Tax and Business Registration Fees Ordinance that was approved by voters in November 2012 (Proposition E).

Under the ordinance, the City will phase in a Gross Receipts Tax and reduce the Payroll Expense Tax over the next five years. The Gross Receipts Tax applies to businesses with more than $1 million in gross receipts, exempting most small businesses. Business Registration Fees will also change for all businesses starting in May. For more information, please visit the website of the Office of the Treasurer and Tax Collector.

The Office of the Mayor in partnership with the Office of Economic and Workforce Development, the Office of the Treasurer and Tax Collector, and the Office of Small Business are joining forces to inform the more than 90,000 businesses in San Francisco about the new changes to the business tax structure.  As part of the City's effort to inform businesses of these changes, businesses and individuals can learn more by attending upcoming seminars and presentations.  Check out the community calendar of upcoming events and meeting by clicking here.

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UPDATE - February 13, 2014

BOMA San Francisco Members:

The San Francisco Treasurer's Office has posted new information regarding the Gross Receipts Tax on their website.  You can also access the information below.

• Tax Presentation Feb 2014
• Summary of GRP Ordinance

The Gross Receipts Tax and Business Registration Fees Ordinance (2012 Proposition E) was approved by San Francisco voters on November 6, 2012. It does not apply to the 2013 tax year or prior years. The first taxpayer filings affected will be the installment payments due April 30, 2014 and the Business Registration Fees due May 31, 2014. The changes to the Gross Receipts Tax and Payroll Expense Tax commenced January 1, 2014. The Office of Treasurer & Tax Collector will provide taxpayers with instructions about changed business registration fees and tax filings in 2014.

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UPDATE - July 16, 2013

The San Francisco Treasurer's Office has posted the summary of the Gross Receipts Tax on their website.  You can also access the information below:

Summary of GRP Ordinance
February 2013 GRP Presentation

The Gross Receipts Tax and Business Registration Fees Ordinance (2012 Proposition E) was approved by San Francisco voters on November 6, 2012. It does not apply to the 2013 tax year or prior years. The first taxpayer filings affected will be the Business Registration Fees due May 31, 2014. The changes to the Gross Receipts Tax and Payroll Expense Tax commence January 1, 2014. The Office of Treasurer & Tax Collector will provide taxpayers with instructions about changed business registration fees and tax filings in 2014.

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UPDATE - April 18, 2013

Please review the following advisory from BOMA San Francisco member Manuel Fishman with Buchalter Nemer to help you plan and implement the upcoming San Francisco Gross Receipts Tax.  

The San Francisco Gross Receipts Tax is a reality. It will be phased in over the course of the next 5 years (beginning in 2014), and gradually replace the current 1 ½% payroll tax as the principal method for taxing persons engaged in business in San Francisco.  

Many questions remain unanswered, including the scope of various exemptions and the characterization of various services and charges routinely included as part of a lease. For example, is a security deposit a gross receipt to the landlord when paid or when a default occurs? Is an improvement allowance a gross receipt to the tenant or simply an advance that is repaid as rent to the landlord? Will vendors pass through the gross receipts tax to building owners? 

With less than nine months remaining in calendar year 2013, and with property owners and managers beginning the budget planning process for 2014, there are several action items that owners and managers of commercial properties should consider:

1. The new Ordinance taxes business activities that generate gross receipts “in the City”. While the Ordinance is complex, as an owner of a commercial building, the determination of whether a gross receipt is “in the City” is simple: “gross receipts from the sale, lease, rental or licensing of real estate are in the City if the real property is located in the City”, and gross receipts from services are in the City “to the extent the purchaser of the services received the benefit of the services in the City.” The Ordinance defines a “gross receipt” broadly, and in the context of real estate, the term includes all rent and the “payment for any services that are part of the lease or rental … paid to, on behalf of, or for the benefit of” the landlord. This should be the starting point for your consideration.

2. The rate of taxation is based on the dollar amount of gross receipts that you receive, and there is a $1,000,000 gross receipts small business exemption that may be applicable to you (but if your gross receipts exceed this exemption, the tax is payable from the first dollar earned).   Please click here for the rate chart.

3. Review your standard form lease to determine whether your lease allows you, as the landlord, to pass through the full amount of the gross receipts tax to your tenants as additional rent. Discuss with your legal counsel the best way to address this issue in your lease form. Stay attuned to changes in the market place as tenants seek to shift this cost to their landlords.

4. Discuss with your listing agent changes in the way brokerage commissions should be paid to separately allocate the commission earned by the listing agent to the listing agent and the commission earned by the procuring agent to the procuring agent, in order to avoid a “double dip” of a gross receipt to the listing agent (meaning that one party pays a gross receipt on money it receives that it simply pays over to a second party). Similarly, discuss with your property management and construction management team the way to address “tenant reimbursements” for build out of improvements to leased premises so that the money is actually paid to the contractor performing the work and does not result in a double dip to the landlord for money that is simply paid over to the contractor.

5. Discuss with your controller and finance officer how to maintain separate charges for real property taxes, parking taxes and gross receipts taxes that you, as the landlord pay. Develop an accounting system that can be incorporated into and shown on the monthly rent statements and annual reconciliation statements. The Ordinance provides an exclusion from gross receipts for “any federal, state or local tax imposed upon a person for which that person is reimbursed by means of a separately stated charge to a lessee” [i.e. think real property taxes] and for taxes that a taxpayer collects “from or on behalf of a taxpayer’s customers and remits to the appropriate governmental entity” [i.e. think parking taxes]..

6. Investors in real estate need to give consideration to how gross receipts are determined in the context of distributions and sale proceeds from a building.

7. Remember that over the next 5 years, landlords will need to keep records for both gross receipts and payroll taxes, and pay a certain amount under each of these taxes until the end of the phase-in period.

8. Remember that San Francisco business registration license fees will start to increase significantly in 2015. Check the new rates by visiting the San Francisco Treasurer’s Office web site:http://sftreasurer.org.

9. The tax will be payable in quarterly installments (based on the concluding quarter’s gross receipts). Check the web site of the San Francisco Treasurers office for updates on the availability of the 2014 business tax reporting form. As of now, a tax reporting form is not available

BOMA has held one member update program on the implementation of the gross receipts tax, and will schedule a second program later this summer. Stay in touch with BOMA for additional updates.

This Advisory has been prepared as a matter of general information on behalf of the BOMA San Francisco Government Affairs Policy Advisory Committee by attorney Manuel Fishman. This Advisory is not considered legal advice, and members should consult with legal counsel before acting on the information contained herein. Mr. Fishman can be reached at:mfishman@buchalter.com.

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Manuel Fishman speaking to BOMA Members

UPDATE - February 27, 2013

The sample lease language to use during the interim period before the Gross Receipts Tax phase in begins in 2014 and the presentations from the briefing on February 15th, are now available:

Click here to view sample lease language to use during the interim period.
Click here to view the presentation overview.
Click here to view the presentation from the San Francisco's Treasurer's Office.

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UPDATE - February 15, 2013

Today's Gross Receipts Tax briefing was well-attended.  Thank you to the BOMA San Francisco member organizers and presenters Manuel Fishman, Kathy Mattes and Tom Gille.  A special thanks to San Francisco City Controller Ben Rosenfield, Treasurer Jose Cisneros and to Greg Kato with the Treasurer's office for presenting to BOMA members.

Please click here to 'like' our facebook page and view pictures of the event.

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Original Post - February 15, 2013

BOMA San Francisco will hold a briefing for members only on Friday, February 15th to relay pertinent information on how the Gross Receipts Tax structure will impact the industry.

Click here for details and registration.

This event will feature the following representatives:

City and County of San Francisco

• San Francisco Treasurer Jose Cisneros
• San Francisco Controller Ben Rosenfield 

BOMA Industry Representatives

• Manny Fishman, Buchalter Nemer
• Kathy Mattes, CBRE 
• Tom Gille, CAC Real Estate Management Co., Inc.

Collectively, the representatives will go over the necessary record keeping that will be required to satisfy the Tax Collectors requirements for this new law. In addition, they will explain the details of the requirements for owners, property managers and third party providers of property management services 

You will leave this briefing prepared for the switch to this new tax system when it begins to phase in starting in 2014. 

Seating IS limited and registration required.

BOMA Protects the Commercial Real Estate Industry - Proposition 13 Change of Ownership Legislation Agreement

BOMA San Francisco Members: 

L to R: Asm. Ammiano; Asm. Bocanegra

California State Assemblymembers Tom Ammiano (San Francisco) and Raul Bocanegra (Pacoima), announced an agreement recently to amend the change of ownership rules under California’s Proposition 13 through Assembly Bill AB 2372. The amendments are supported by a diverse group of stakeholders including the California Business Roundtable, the California Chamber of Commerce, the California Business Properties Association, which includes BOMA California, and the California Tax Reform Association.

Over the years, a few complex property purchase deals have given the appearance of an attempt to avert  the Proposition 13 change of ownership rules.  The transactions have been highlighted and used to commove the reform proponents of the property tax law.  This current agreement between stakeholders is meant to update some of the laws implementing statutes to address this viewpoint.

Currently, a property is reassessed when it is sold and/or changes ownership.  However, if none of the purchasers acquires more than a 50% interest, reassessment may not necessarily be triggered.  AB 2372 will be amended to clarify that as long as 90% of a property is sold, a reassessment would be triggered, regardless of whether any individual buys more than 50% of the property.  Safeguards are being negotiated by your BOMA California advocates in Sacramento now to clarify that the change of ownership amendments do not apply to normal turnover of stock for publicly traded companies.

As our organizations have done in the past, BOMA San Francisco and BOMA California will continue to defend Proposition 13 - an initiative that protects both residential and commercial properties.  However, part of an effective defense of the property tax law is to recognize that the intent of the original language may need to be updated to assure the voter approved goals of the initiative are being met.  BOMA believes this agreement does just that.

Split Roll Measures Still Loom

For 2014, various members of the California State Legislature continue to pursue public policies that would undermine the intent of the property tax protections approved by voters under Proposition 13.  Indeed, there are upwards of nine California Constitutional Amendments seeking to lower voter thresholds to amend the initiative's tax protection on properties from 2/3rds (66.66%) to 55%.

Rest assured that your fellow BOMA California members are working hard to protect the industry's interest.  Stay tuned for updates in future blog posts.

Celebrating Small Businesses in San Francisco - The San Francisco Small Business Network's 30th Annual Awards Celebration

BOMA San Francisco Members:

BOMA members understand that without small business tenants, their buildings would not exist.  Indeed, a fair amount of the companies that occupy our member buildings are small businesses.

With the 10th annual celebration of San Francisco Small Business Week, our members thought it apropos to highlight the San Francisco Small Business Network's (SFSBN) recent 30th Annual Awards Celebration.  SFSBN honored outstanding small business entrepreneurs and advocates with 200 business leaders along with San Francisco officials at the Marine's Memorial Grand Ball Room. It was a festive evening with great mingling, guest speakers, tributes, laughter, and fun.

From L to R: John Bozeman, BOMA; Kathy Mattes, Chair of the BOMA SF-PAC; Debbie Shea, BOMA's SFSBN Board Representative; Tim Falvey, Vice Chair of the BOMA SF-PAC; and, Renee Darner, Hanford Freund Property Management

Our association's small business champions were there in support of the honored companies.  BOMA San Francisco members have participated with the SFSBN for many years and are excited for the next 30 years.  Congratulations to all winners!

BOMA San Francisco Members Meet with San Francisco Supervisor Jane Kim

BOMA San Francisco Members:

BOMA San Francisco leaders met with Supervisor Jane Kim recently to discuss her work on behalf of the residents of District 6 and the residents of the City and County of San Francisco.  The discussion also included San Francisco's economic growth that is mostly in her district: SoMa, Mission Bay, Treasure Island, Showplace Square, Inner Mission and the Tenderloin.

Supervisor Jane Kim and BOMA SF-PAC Chair Kathy Mattes

Supervisor Kim, mentioned that she is a supporter for economic growth and new developments that create jobs and add tax dollars to City coffers, but is concerned that not enough affordable housing is being constructed, and that displacement of existing tenants is unacceptable. 

Kim defended her legislation that would mandate a 30% affordable/70% market rate mix for all new housing developed within her district. She also said every new development must offer some “public/community benefits”. Kim voiced support for greater density in new developments and open or park space. As such, she is pushing for more of both in any new developments.

Supervisor Kim stated that she spends approximately 60% of her time on land use issues, and is always concerned about new developments “destabilizing” the existing character of neighborhoods.

Helping the homeless is a priority for Supervisor Kim although the concentration of homeless shelters in the district does create unique challenges for visitors and residents. Kim recently spent a night in a homeless shelter to help her understand the service and the constituency that uses them.  According to the Supervisor, the majority of shelter users are those over 45 years of age and those that have a variety of physical and/or mental issues. Kim stated her gratitude for obtaining a District 6 Police substation on 6^th Street, and hoped her district would be afforded a 24 hour drop-in medical clinic in the near future.  

Kim voiced her support for Vision Zero, which is the plan to reduce pedestrian fatalities to zero by 2020. She is also supporting Proposition B on the June city ballot.  BOMA San Francisco members have voted to oppose the measure.

As a former member of the San Francisco Board of Education, she remains committed to promoting excellence in our public schools, and voiced support for the reauthorization of several bonds in November 2014 that will continue extra funding for arts and music education in San Francisco's public schools.

BOMA members present offered to be a resource to Supervisor Kim whenever she needs input on any issues affecting/impacting commercial real estate.  We thank her for her public service and for her time.

BOMA San Francisco Supports Graffiti Legislation Targeting the Worst Offenders

BOMA San Francisco Members:

Recently, the members of BOMA San Francisco's Government Affairs Policy Advisory Committee (GAPAC), reviewed and voted to support San Francisco District 5 Supervisor London Breed's legislation to help deter repeat graffiti offenders. The San Francisco Board of Supervisors will review and vote on the measure for a final time this week.  The ordinance will then be presented to Mayor Ed Lee for his consideration and possible signature.

Based on a nationwide study of best practices, the new policies will streamline evidence-gathering, enable the San Francisco City Attorney to pursue civil lawsuits against the worst graffiti offenders, save the City money, and tighten graffiti controls in City parks and on Muni—all without harsh, ineffective criminal charges.

Supervisor Breed’s proposal will enable the City Attorney to pursue civil cases against repeat graffiti offenders or, taggers, who commit the overwhelming majority of offenses. The plan will centralize evidence collection by having the City’s graffiti abatement employees, particularly at the San Francisco Department of Public Works and San Francisco Municipal Transportation Agency, photograph offenses with their smart phones. They then will submit those reports to San Francisco Police Department via the 311 app. 311 is customizing its interface to streamline this reporting and provide SFPD the best possible data with the reporter’s name, date, size of offense, type of material, etc.

Reporting employees will no longer have to make specific estimates of damages, as311 will calculate it automatically based on newly-created cost matrices. The SFPD will curate the database of offenses, and with the help of a new crime analyst, will identify serial tags and taggers. Those serial cases will be referred to the City Attorney to underpin civil suits for monetary damages and/or community service.

UPDATE - Registration of Vacant or Abandoned Buildings: Amendments Proposed

UPDATE - May 8, 2014

BOMA San Francisco Members:

Supervisor Katy Tang has introduced amendments to the 2009 San Francisco Vacant or Abandoned Buildings (VABO) law, summarized below.

If you are a BOMA member that owns or manages a portfolio of smaller buildings in San Francisco's commercial corridors, or if you feel that the new amendments may impact your downtown high-rise commercial/mixed-use properties, please email johnb@boma.com with your comments.

Existing Law (2009) 

Building Code Section 103A.4 et. seq., the VABO, requires that owners of vacant or abandoned buildings in San Francisco register their properties as such, pay registration fees, secure their properties to deny access to would-be trespassers, and provide proof of liability insurance coverage for the properties. VABO, as it currently reads, applies to some vacant commercial storefronts in San Francisco.

However, a building containing a vacant commercial storefront but an occupied second floor unit is technically not a vacant or abandoned building, as defined by VABO. As such, the City and County of San Francisco feels that many vacant commercial storefronts in San Francisco evade VABO regulations via this loophole.

Proposed Amendments to Current Law (2014) - Click Here to Review the Ordinance

By amending the Building Code to apply requirements similar to those specified in VABO to properties containing vacant or abandoned commercial storefronts, owners of properties in commercial corridors will have extra incentive to seek suitable tenants to fill their vacant or abandoned commercial storefronts. To provide owners of vacant or abandoned commercial storefronts with ample time to find suitable tenants, the proposed amendment to the Building Code would mandate owners of vacant or abandoned commercial storefronts to do the following within 30 days of issuance of a Notice of Violation:

• Register their commercial storefronts with the Department of Building Inspection (DBI);
• Secure their commercial storefronts to prevent trespassers from gaining access to the premises;
• Remove graffiti, refuse, and debris from in and around their commercial storefronts; and 
• Maintain fire and/or liability insurance coverage for their commercial storefronts as DBI determines necessary. 

Additionally, owners of vacant or abandoned commercial storefronts would be required to do either of the following within 270 days of their commercial storefronts becoming vacant or abandoned:

• Rent their commercial storefronts to tenants who occupy the premises in a manner that complies with all state and local laws; or 
• Pay a fee of $765.00 to include their commercial storefronts in the Registry of Vacant or Abandoned Commercial Storefronts. This fee shall be assessed on an annual basis for each year that a commercial storefront remains vacant or abandoned. 

Finally, the proposed amendment carves out an exemption for owners of commercial storefronts who demonstrate a good faith effort to rent, lease, or sell their commercial storefronts, or obtain permits to bring their commercial storefronts into compliance with the law.

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Original Post - June 15, 2009

Your BOMA Advocacy Team attended the special meeting of the Building Inspection Commission (BIC) and the Department of Building Inspection (DBI) recently where the Registration of Vacant/Abandoned Buildings Ordinance was discussed (you can view a copy of the Ordinance, here). The discussion surrounding the measure was an interesting one; here are the highlights:

What's the origin/intent of the Ordinance?

• The measure was introduced on May 5, 2009 by Board of Supervisors President David Chiu and Supervisor Bevan Dufty.
• Many cities have this type of ordinance (under the 'public nuisance' ordinance of the code).
• At its core, the measure attempts to mitigate the deterioration of a building.

What's the status of the Ordinance?

• On June 3, 2009, the San Francisco Planning Department: Historic Preservation Commissionconducted a public hearing to consider the measure. The Commission approved the Ordinance, with modifications. You can view the Commission's recommendation and documents related to their action, here.
• On June 10, 2009, the measure was heard before the Code Advisory Committee (CAC) where they recommended "non-support of [the] ordinance as written, and in lieu recommen[ed] that the Department of Building Inspection develop administrative procedures to enforce existing requirements." You can read the CAC's letter to the BIC, here.
• On June 12, 2009, DBI Director Vivian Day responded to the Planning Department's recommendation of the Ordinance that can be viewed here. In short, the measure is not enforceable by DBI.
• On June 12, 2009, the BIC approved a motion to notify the Board of Supervisors that it does not support the Ordinance.

The need for the Ordinance warrants further discussion:

• Do we need another ordinance? There are already City ordinances that cover blight.
• What about buildings slated for demolition, or those waiting for rehabilitation? There needs to be a consensus review of this issue.
• Finding insurance on a vacant building can be difficult. How can this be addressed?
• What is the definition of a blighted building?
• The City doesn't know how many blighted buildings it has.
• This is a big brother issue: The City should help building owners improve their buildings, NOT impose another City mandate.

A full transcript/video of the meeting can be found here.

Your BOMA Advocacy Team will continue to monitor the Registration of Vacant/Abandoned Buildings Ordinance and report any new developments on this blog.

David Chiu - The Right Choice For San Francisco's Next California Assembly Member

BOMA San Francisco Members:

BOMA San Francisco is proud to announce its endorsement of David Chiu, current President of the San Francisco Board of Supervisors, for the California Assembly seat being vacated by Tom Ammiano.

Assembly District 17 represents most of the eastern and southern portions of San Francisco. He is being opposed by fellow SF Supervisor David Campos.  As an organization of commercial real estate owners, managers, and service providers, BOMA always values political leaders who can get things accomplished. Not just talk the walk, but walk it.

David Chiu and BOMA SF-PAC Chair, Kathy Mattes

David Chiu has consistently been in the forefront of crafting coalitions that come to a positive result: action. He supported the rebuild of the Park Merced project that will add much housing to the westside. He likewise supported the Hunter’s Point shipyard redevelopment that will breathe new vitality into that portion of San Francisco while producing much needed housing. He was the architect of the agreement that preserved the California Pacific Medical Center project from falling apart and he supported the Mid-Market tax credit legislation that has stimulated new businesses and residential growth in that long-distressed part of our city.

Supervisor Chiu knows BOMA and has worked with our organization on several issues directly impacting our industry including devising a means to assist small tenants with their accessibility requirements, and supporting an end to the requirement for air replenishment systems installations in new buildings when firefighters and owners preferred a more effective alternative (protected dedicated elevators).

David Chiu has been a small businessman, and understands the value to our city of creating successful businesses, growing the economy, and creating good paying jobs. He is a skilled legislator who will represent all segments of our diverse city admirably and fairly.

David Chiu is BOMA’s choice for California State Assembly.

Energy Department Recognizes Landlords, Tenants Working Together to Save Energy in Commercial Buildings

BOMA San Francisco Members:

The Energy Department recently honored 14 organizations, naming them as 2014 Green Lease Leaders for their commitment to reducing energy waste and increasing efficiency in commercial buildings. These companies have demonstrated their commitment to energy efficiency, incorporating lease clauses that reinforce energy-efficiency choices, facilitating access to the energy bill data necessary for building benchmarking and encouraging cooperation on environmental initiatives.

Green leases (also known as aligned leases, high performance leases, or energy-efficient leases) align the financial and energy incentives of building owners and tenants, allowing them to work together to save money, conserve resources, and ensure the efficient operation of buildings. These green leases have been applied across nearly every major property type, including offices, retail spaces, and manufacturing sites.

Through the Green Lease Leaders program, the Energy Department’s Better Buildings Alliance works with a wide variety of companies to incorporate green lease language into agreements across their portfolios and provide real-world, replicable leasing examples that can be used by others. The Green Lease Leader designation signifies a company or brokerage team that has successfully implemented green lease language into new or existing leases.

The following companies were recognized:

Akridge
Brandywine Realty Trust
The Bullitt Foundation
Empire State Realty Trust
Jamestown, L.P.
Kilroy Realty Corporation
Kimco Realty Corporation
Liberty Property Trust
Oxford Properties
PricewaterhouseCoopers, LLP
Regency Centers
Government Properties Income Trust
The Tower Companies
Unico Properties

The Department's Office of Energy Efficiency and Renewable Energy accelerates development and deployment of energy efficiency and renewable energy technologies and market-based solutions that strengthen U.S. energy security, environmental quality, and economic vitality. Find more information on the Better Buildings Alliance and the Green Lease Leaders program.

California State Fire Marshal - Delayed Effective Date for Roof Mounted Solar Photovoltaic Panels: January 1, 2015

BOMA San Francisco Members:

On April 23, 2014, the California Building Standards Commission filed with the Secretary of State an emergency rulemaking change on behalf of the Office of the State Fire Marshal. This emergency rulemaking delayed the effective date for certain fire classification requirements for roof mounted photovoltaic panels/modules [systems] contained in California Code of Regulations (CCR),Title 24, Part 2, known as the 2013 California Building Code (CBC) and Part 2.5, the California Residential Code (CRC). CBC Section 1505.9 and CRC Section R902.4 have been revised to read as follows:

1505.9 Photovoltaic panels and modules. Effective January 1, 2015, Rooftop mounted photovoltaic systems shall be tested, listed and identified with a fire classification in accordance with UL 1703. The fire classification shall comply with Table 1505.1 based on the type of construction of the building.

R902.4 Photovoltaic panels and modules. Effective January 1, 2015, Rooftop mounted photovoltaic panels and modules shall be tested, listed and identified with a fire classification in accordance with UL 1703. The fire classification shall comply with Table 1505.1 of the California Building Code based on the type of construction of the building.

This emergency rulemaking was necessary as the Office of the State Fire Marshal was recently informed by industry that presently there is an insufficient supply of UL 1703 compliant Class A, Class B or Class C fire rated, tested and listed photovoltaic panels/modules [systems] to meet present demand.  This circumstance may prohibit the permitting of projects to install solar photovoltaic systems on roofs, which in turn curtails efforts to meet current sustainability goals. For additional background and information please review the Finding of Emergency located on the California Building Standards Commission website.

Questions or comments regarding this Information Bulletin should be directed to Division Chief Kevin Reinertson, Code Development and Analysis at (916) 327-4998, or by electronic mail to kevin.reinertson@fire.ca.gov.

Kathy Mattes and Tim Falvey - Leaders of BOMA San Francisco's Political Action Committee in 2014

BOMA San Francisco Members:

Please take a moment to learn about your BOMA San Francisco Political Action Committee (BOMA SF-PAC) leadership team for the commercial real estate industry in 2014.

The BOMA SF-PAC promotes good government. This respected group of commercial real estate leaders work vigorously to support fair-minded candidates for public office and ballot measures advancing the economic vitality for San Francisco's businesses and residents. The PAC educates lawmakers, BOMA members and the public about the impact of proposed legislation and policy.

Click here to learn more about the BOMA SF-PAC and email kenc@boma.com with an questions you may have.

Kathy Mattes

Chair, BOMA SF-PAC

Kathy Mattes is a past president of BOMA San Francisco and currently serves as Board Chair of the BOMA Political Action Committee. Kathy is also an active member of BOMA's Government Affairs and Political Advisory Committee. She has worked in commercial real estate, as both an asset manager and property manager, since 1983. 

After leaving full time employment with CBRE in 2013, where she served as Director, Asset Services, Kathy became a real estate consultant, focusing on assisting building owners and managers with short term assignments. Kathy is available to manage a building or portfolio of buildings during an interim period between managers, when someone is on leave, or at any time that additional skilled assistance is needed.

Kathy also serves as Board Chair of Urban Solutions, a local economic development non profit that works closely with the Mayors office and small businesses to improve underserved neighborhoods throughout the City. In her free time she makes jewelry, goes to the gym and works in her garden.

Tim Falvey

Vice Chair, BOMA SF-PAC

Mr. Falvey has been active in real estate management since 1984, and real estate brokerage since 1988. His association with Hanford · Freund & Company began in 1990 when he joined the firm as a Property Manager. In 1994, Mr. Falvey became President of Hanford · Freund & Company. He is a Certified Property Manager® (CPM) and a Certified Community Association Manager (CCAM).

A fourth generation San Franciscan and graduate of the University of San Francisco, Mr. Falvey is a member of the Golden Gate Chapter of Lambda Alpha International, the Honorary Society for the Advancement of Land Economics. In addition he is Vice Chair of the Political Action Committee of the Building Owners and Managers Association of San Francisco (BOMA PAC-SF).

Previously, Mr. Falvey served as a Director and Chief Financial Officer of the San Francisco Association of Realtors®, where he chaired the Property Management Committee, Finance Committee, and the Governmental Relations Committee. He also served on the Board of Directors of the California Association of Realtors®, where he chaired the Common Interest Development Committee.

In 2003, Mr. Falvey was named REALTOR OF THE YEAR by the San Francisco Association of Realtors.

In addition to his involvement in the real estate community, Mr. Falvey is active in a number of other business, civic and charitable organizations. He served three terms as President of the Union Square Association, and was instrumental in the merger of that organization with the expanded Union Square Association Business Improvement District, on which he serves as Board Secretary. He was an active member of the Citizens Advisory Committee for the Renovation of Union Square, and served on the Board of Directors of the San Francisco Small Business Network.

In 2004, Mr. Falvey was named SMALL BUSINESS OWNER OF THE YEAR by the Small Business Network.

Previously, he served as a Director of Operation Dream, an organization devoted to providing educational and recreational opportunities for children in San Francisco public housing projects. Mr. Falvey is the recipient of a special COMMENDATION awarded to him by the San Francisco Board of Supervisors in recognition of his involvement in the community.