Published with the Wolf Firm
California has for decades been among the leading states in responding to Climate Change. On January 1, 2014, new legislation became effective as to non-residential real estate related to the sale, lease, finance or refinance of such properties, using, in part, the US Environmental Protection Agency’s (EPA) ENERGY STAR Portfolio Manager online program.
The new legislation, California AB1103 and 531, is codified in Section 25402.10 to the California Public Resources Code (the “legislation”) and applies to commercial real properties that have a gross square footage of 10,000 sq. ft. or more (as of July 1, 2014, 5,000 sq. ft. or more). The legislation is focused around the energy use of such properties.
With the growing popularity and focus on energy performance, commercial mortgage brokers who understand the benchmarking and disclosure process and how this information will affect transactions will be best positioned to advise their clients. They also will be better equipped to anticipate and handle any potential fallout from these disclosures. A copy of the full article can be downloaded below.