the sign of a Profitable Property

Property Management News

Understanding the Impact of California’s Legislative Bills on Property Owners

As property management experts, we are dedicated to staying informed about legislative changes that could affect our clients and the industry. Here, we provide an overview of eight significant legislative bills in California, their current statuses, and their potential impacts on property owners.

1. AB 2433: Private Permitting Review and Inspection Act

Objective: This bill aimed to address delays in the building permit process by introducing flexibility in fee structures, inspection timelines, and the use of private professional services.

Status: It passed the Assembly with a unanimous vote but was withdrawn due to opposition from the Service Employees International Union (SEIU).

Impact: Had it passed, property owners could have seen faster permit approvals, reducing construction delays and costs.

2. AB 3196: Demurrer Hearing Timetable

Objective: This bill seeks to enhance the efficiency of legal processes in commercial property disputes by setting a definitive schedule for demurrer hearings, reducing delays and financial hardships for small property owners and businesses.

Status: It has passed the Assembly and is currently in the Senate Appropriations Committee.

Impact: If enacted, property owners would benefit from quicker resolutions of legal disputes, potentially lowering legal costs and improving cash flow.

3. AB 3068: Adaptive Reuse Incentives

Objective: This bill promotes the conversion of non-residential buildings into residential or mixed-use spaces through financial incentives and streamlined approval processes.

Status: It passed the Assembly and the Senate Housing Committee and is now awaiting a Senate floor vote.

Impact: Property owners could find new opportunities for developing residential properties, enhancing the value of underutilized buildings.

4. AB 2910: Conversion of Commercial or Industrial Buildings

Objective: This bill aims to convert underutilized commercial buildings into residential units, allowing pro-housing jurisdictions to adopt alternative building regulations.

Status: It passed the Assembly and the Senate Housing Committee and is now awaiting a Senate floor vote.

Impact: Property owners may benefit from more flexible building regulations and new opportunities to develop residential units, potentially increasing property values.

5. SB 1227: SF CEQA Exemption

Objective: This bill proposed CEQA exemptions for development projects in San Francisco’s “downtown revitalization zone” to promote urban development while protecting resources.

Status: The bill is currently dead, held in the Senate Appropriations Committee suspense file.

Impact: Had it passed, property owners in San Francisco could have seen reduced regulatory hurdles, facilitating faster development projects.

6. SB 1103: Detrimental Commercial Lease Mandates

Objective: This bill includes commercial rent control provisions for certain retail properties, proposing to cap security deposits and differentiating business-to-business and business-to-individual transactions.

Status: It passed the Senate and the Assembly Judiciary Committee.

Impact: If enacted, this could affect lease negotiations and terms for retail property owners, potentially limiting their flexibility in setting rental conditions.

7. AB 2364: Unrealistic Janitorial Quotas

Objective: This bill sets impractical production rate limits for janitorial work, significantly increasing labor costs for large buildings.

Status: It passed the Assembly and is currently in the Senate Appropriations Committee.

Impact: Property owners might face increased operational costs due to the need for additional janitorial staff, impacting overall profitability.

8. AB 2374: Costly Custodian Mandates

Objective: This bill would make property owners jointly liable for contractors’ compliance with the Displaced Janitor Opportunity Act, potentially resulting in higher operating costs.

Status: It passed the Assembly and is currently in the Senate Judiciary Committee.

Impact: If enacted, property owners could face increased liability and higher costs for compliance, affecting operational budgets.

Staying Informed and Prepared

Navigating the complexities of legislative changes in California is crucial for property owners who want to stay ahead in the real estate market. This blog post highlights eight key bills that could significantly impact property management, from streamlining the building permit process and enhancing legal efficiency to encouraging adaptive reuse of nonresidential buildings and imposing new mandates on janitorial services. Understanding these potential changes enables property owners to make informed decisions, ensuring their properties remain compliant and profitable. Staying proactive and informed is essential, and our team of experts is here to provide guidance and support through these evolving legislative landscapes.

Schedule a consultation with us today to discuss how these legislative changes could affect your property and to ensure you’re prepared for what’s ahead.

Contact us now to book your consultation and stay informed!

This update on legislative bills was originally provided by BOMA Greater Los Angeles. For more detailed information, please visit

Source: – “CRE Alert: Fate of the BOMA Cal Top 8” (
Keith Corneliuson
Executive VP – Asset Management

(818) 514-2205

Schedule a Call to Discuss More

    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.