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A recent California Appellate Court decision provided tenants with additional protections when it clarified that local rent control laws applied to a single-family home in which the landlord[1] rented rooms in the home to separate tenants despite the landlord’s belief that single-family homes were excepted from rent control laws. Specifically, in Owens v. City of Oakland Housing, Residential Rent and Relocation Board (“Owens”), Division Three of the First District of the California Court of Appeal clarified that the landlord’s argument that an exception to local rent control laws found in the Costa-Hawkins Housing Act (“Costa-Hawkins”) did not apply.…
On March 22, 2020, Governor Cuomo issued an executive order that closed all non-essential businesses in New York State (the “Order”).  In connection with the Order, New York City restaurants were forced to reduce their operations to pick-up and delivery only.  On June 8, 2020, New York City entered into Phase I of the New York State reopening plan.  It is anticipated that sometime between June 22, 2020 and the beginning of July, 2020, New York City will enter into Phase II.  During Phase II, restaurants will not be allowed to serve patrons indoors, but will be permitted to commence…
The New York City Department of Sanitation (“DSNY”) is proposing to amend its existing sanitation rules to require new and converted buildings classified as multiple dwelling buildings having 300 or more dwelling units to provide an enclosed “Waste Containerization System” that would support a garbage truck entering a building to pick up waste.  The purported goal of the proposed rule is to limit the large piles of garbage bags that are placed curbside on narrow sidewalks, accessible to rodents and other pests.…
On April 6, 2020, the California State Judicial Council adopted Emergency Rule 9 in response to the COVID-19 pandemic.[1]  As originally approved, the rule tolled the statute of limitations for all civil causes of action from April 6, 2020 until 90 days after the Governor lifts the current State of Emergency Declaration related to the COVID-19 pandemic.…
MAY 8, 2020 – UPDATE: The final version of the New Ordinance has been signed by Mayor Gracetti and takes effect May 12, 2020. *** California Senate Bill (“SB”) 899, introduced in March by Senator Scott Wiener and currently in the Senate Housing, Environmental Quality, and Governance and Finance Committees, would exempt eligible affordable housing projects and mixed use projects on property owned by religious institutions and nonprofit medical facilities from review under the California Environmental Quality Act (Pub. Res. Code § 21000 et seq.) (“CEQA”) and provide for other permit streamlining.  Eligible entities include nonprofit hospitals, diagnostic or…
On a unanimous vote yesterday, May 6, 2020, the Los Angeles City Council passed an ordinance (“New Ordinance“) amending rules in the Los Angeles Municipal Code that temporarily prohibit the eviction of residential and commercial tenants in the City of Los Angeles for failure to pay rent due to COVID-19.  Notably, the New Ordinance would extend the prohibition period on evictions.  The original period was previously limited to the local emergency period as declared by Mayor Eric Garcetti.  For residential tenants, the new prohibition period would extend to include the “Local Emergency Period” plus 12 months after the…
In an earlier post, we covered the local Shelter-in-Place (“SIP”) orders, which severely restricted construction activities throughout the Bay Area.  This week the participating jurisdictions (Alameda, Contra Costa, Marin, San Francisco, San Mateo, and Santa Clara Counties) updated their SIP orders to ease restrictions on construction.  The changes took effect May 4 and will continue through May 31, unless further modified.…
On April 23, 2020, California Governor Gavin Newsom issued Executive Order N-54-20 (EO) which, in part, addresses an outstanding question related to the California Environmental Quality Act’s (CEQA) “public review” requirements, which quickly became problematic upon closure of the locations typically used to house and post CEQA-related documents.  These closures, which impact government buildings like the County Recorder’s Office, are just one of the many consequences of the COVID-19 pandemic and resultant stay-at-home orders issued in an attempt to safeguard the public and flatten the curve.  Under this EO, while the time periods for public review remain the same, all…
The Clean Water Act sometimes requires a permit for the indirect discharge of pollutants from a point source to navigable waters, but only when the discharge is the “functional equivalent” of a direct discharge, the Supreme Court held on April 23.  The Court’s 6-3 opinion in County of Maui v. Hawaii Wildlife Fund (No. 18-260) addresses a circuit split regarding whether indirect discharges to navigable water via groundwater are subject to the Act’s National Pollutant Discharge Elimination System (“NPDES”) permitting program, but it has implications for other types of indirect discharges as well.  Although the Court identified some factors that…
The Federal Energy Regulatory Commission (“FERC” or “Commission”) issued on April 16, 2020 two orders[1] largely denying requests for rehearing of its prior decisions that, among other things, subjected to minimum offer price thresholds energy resources participating in PJM Interconnection, L.L.C.’s (“PJM”) capacity market which receive so-called “State Subsidies”.[2]  FERC  reaffirmed that a resource within broadly-defined categories (e.g., renewable resources) receiving State Subsidies must offer capacity in PJM’s forward capacity market at or above an administratively-established price floor (i.e., the minimum offer price rule, or “MOPR”), regardless of such a resource’s actual incremental costs.  Potential and likely…
On April 10, 2020, the U.S. Environmental Protection Agency (EPA) issued Interim Guidance regarding EPA decision-making with respect to the potential impacts of the current novel coronavirus (COVID-19) pandemic on field work at certain cleanup sites.  The Interim Guidance, which “supplements” a March 19 EPA guidance, applies to all contaminated sites where EPA is the lead agency or has direct oversight or responsibility, affecting various regulatory programs that were excluded from EPA’s March 26 COVID-19 Enforcement Discretion Memo, including hazardous waste cleanups under CERCLA and RCRA, among others.  This is an interim guidance, and EPA has made it clear…
On April 9, 2020, the IRS issued Notice 2020-23 (the “Notice”) which expands the filing and payment deadline relief announced by the Internal Revenue Service (“IRS”) in March.  The March announcement gave taxpayers until July 15, 2020 to file their federal income tax returns and to pay federal income taxes, each of which were originally due on April 15, 2020.  The Notice extends additional key tax deadlines for individuals and businesses including certain deadlines applicable to taxpayers engaging in time-sensitive deferred like-kind exchanges.…
Members of the Sheppard Mullin Energy, Infrastructure and Project Finance Team wrote an article published in the March 16, 2020 edition of Tax Notes Federal regarding the practical impacts on tax equity financing for renewable energy projects of a private letter ruling (“PLR”) published by the IRS in late 2019.  The PLR addressed normalization and loss disallowance rules applicable to public utilities.  These rules have posed significant challenges to public utilities that want to own renewable energy generation facilities, make efficient use of the tax benefits they provide (via the tax equity market) and recover their costs from ratepayers.…
Last week the Federal Energy Regulatory Commission (“FERC”) continued to issue orders, notices, and guidance related to the current novel coronavirus pandemic, the health and safety of FERC and energy industry employees, and the continued reliability of the U.S. energy sector.  A summary of FERC’s relevant actions are provided below, including information regarding FERC’s operating status, extensions for filing deadlines and efforts to ease regulatory burdens during this crisis.…
As state and local governments act to address the economic fallout of the COVID-19 pandemic, relief for renters impacted by the coronavirus has come from both state and local policymakers.  In previous posts, we covered San Francisco’s and San Diego’s efforts to temporarily ban evicting residential and commercial tenants impacted by COVID-19.  In this post, we explain Governor Gavin Newsom’s Executive Order, issued on March 27, creating a statewide moratorium on evicting renters impacted by COVID-19.  Here are key takeaways from the statewide Executive Order.…
On April 6, 2020, the State Judicial Council adopted emergency amendments to the California Rules of Court in response to the COVID-19 pandemic.  One important change that affects many real estate transactions and development projects tolls the statute of limitations for all civil causes of action from April 6, 2020, until 90 days after the Governor declares that the state of emergency related to the COVID-19 pandemic is lifted.  Among other things, this extends the date for initiating litigation challenging a CEQA document or a development approval, such as a tentative map or conditional use permit.  This also affects the date…