Posted on January 29, 2020

Lawmakers return to Washington with a possible presidential impeachment trial in the Senate on their minds. But as that process plays out, policymakers are discussing other issues that are important to commercial real estate.

Just before Christmas, officials at the Treasury Department released the final round of regulations governing opportunity zones, the economic development tool designed to spur job creation and economic development in distressed or developing communities. Opportunity zones were created as part of the 2017 Tax Cuts and Jobs Act that NAIOP supported.

The final rules address questions such as:

• What types of gains may be invested and when?
• When may gains be excluded from tax after an investment is held for a 10-year period?
• How can large C Corporations invest in opportunity zones?

Click here to read more

Posted on January 14, 2020

The Charlotte Land Development Standards Committee has determined that various details in the CLDSM need to be revised or added as Revision No. 19 of the CLDSM. DRAFT updated details are available on the CLDSM website at https://charlottenc.gov/cldsm in a PDF marked up with revision clouds and revision notes. The projected effective date for the updated details and Revision No. 19 of the CLDSM will be January 27th, 2020. Please review the DRAFT details and provide any feedback or comments to Brendan Smith at [email protected] by January 15th, 2020.

Posted on November 18, 2019

Last week, the House Committee on Financial Services unanimously (57-0) passed a bipartisan bill that would extend the Terrorism Risk Insurance Program (TRIA) for seven years. The reauthorization of TRIA the can now move to the floor of the full House of Representatives.

The bill, H.R. 4634, would also require a study on the cyberterrorism market and expand an ongoing study to determine the availability and affordability of TRIA coverage for places of worship. In the Senate, Republican Thom Tillis of North Carolina is reportedly working to introduce a reauthorization bill as well. The current bill expires next year.

In order to guarantee that insurance coverage would be available for the commercial real estate industry, Congress first passed the Terrorism Risk Insurance Act of 2002. It created a federal reinsurance backstop program for terrorism insurance, and mandated that insurers make terrorism coverage available along with their property and casualty lines of insurance. Congress has already extended TRIA three times.

Posted on November 12, 2019

The Advantage Series is an exclusive member benefit, delivering expert insights into the latest research to help you make informed business decisions.

This webinar will provide members with an update on federal legislative activity and executive agency actions affecting the commercial real estate industry, with a specific focus on NAIOP’s top public policy and legislative priorities.  Aquiles Suarez, NAIOP’s vice president for government affairs, and Alex Ford, NAIOP director of federal affairs, will discuss issues including tax legislation, infrastructure, environmental issues and federal regulatory matters.  Attendees can pose questions regarding federal issues affecting their business and gain insights to prepare them for any future regulatory or legislative challenges.

Register Now

Posted on October 22, 2019

Last night (10/21) Charlotte City Council voted to approve updates to the sign and tree ordinances. NAIOP Charlotte supported the proposed text amendments to the Tree Ordinance below:

On behalf of the hundreds of commercial real estate developers and industry service providers represented by NAIOP Charlotte, we request your support of the proposed amendment to the City’s Tree Ordinance Amendment at the City Council business meeting on Monday, October 21st.

Petition #2019‐104 seeks to codify flexibility, better integrate trees into urban sites, and will result in no net loss of ordinance required trees. It incentivizes urban development and redevelopment to plant trees on site, compared with the current practice of payment in lieu which pushes our canopy out of urban areas where benefits from sustainable practices can be leveraged. It places trees in areas where people want to congregate, socialize, and enjoy open space. Current requirements are restrictive of where trees can be located. 

Posted on August 13, 2019

Despite the ongoing stalemate over the state budget, legislation supported by the real estate and home building industry continues to make progress in Raleigh. Over the past few weeks, Governor Cooper has signed into law a variety of bills supported by the North Carolina Home Builders Association (NCHBA), the North Carolina Realtors®, NAIOP North Carolina, and other trade groups. Here’s a summary of some of the key laws that will benefit the residential and commercial real estate industries in the years ahead:

• HB 675 — 2019 Building Code Regulatory Reform, sponsored by Representatives Mark Brody (R-Union), Dennis Riddell (R-Alamance), Jon Hardister (R-Guilford), and Billy Richardson (D-Cumberland). This is the fifth successful bill over the past several sessions of major reforms to the state building code and inspections process Key provisions in this year’s act include:
  • Prohibits local governments from requiring developers/builders to bury existing power lines or bury relocated power lines that are located outside the subdivision.
  • Prohibits local governments from setting minimum square footage requirements for residential structures.
  • Requires the North Carolina Building Code Council to conduct a cost/benefit analysis for all proposed changes to the North Carolina Energy Conservation Code since January 1, 2018.
  • Requires the North Carolina Building Code Council to create an inspection form to be used by engineers and architects and clarifies that they can inspect foundations and underslabs.
  • Adds a new level of inspector, residential changeout inspector, to assist with minor inspections.
  • Requires that a local government chooses to have plan review that the initial review for residential building plans must be performed within fifteen (15) business days after submission.
  • Requires that a local government can issue a temporary certificate of occupancy if the requirements of the NC Building Code are met.
• HB 492 — Simplify Builder Inventory Exclusion, sponsored by Representatives Mark Brody (R-Union), Julia Howard (R-Davie), and Brian Turner (D-Buncombe), will eliminate the need for a builder to file annually in order to take advantage of an important property tax exclusion.The new law permits a builder to file a one-time application to claim an exemption from higher property taxes on land and houses held for sale by a builder to the extent that the tax increase is attributable to subdivision of the property or improvements made such as the installation of infrastructure or the construction of a single-family or duplex house on the property.
• HB 620 — Street Database/Manual/Public Record Exemption, requires the North Carolina Department of Transportation to create a “Public Street Information Database”, by 01/10/20 and update it regularly, for the purpose of conveying the status of roads within the State. This publicly-available database will indicate whether the road is (1) federally owned, (2) State-owned with State road number assigned, or (3) State-maintained with a State road number assigned.
• SB 355 — Land-Use Regulatory Changes, sponsored by Senators Dan Bishop (R-Mecklenburg), Paul Newton (R-Cabarrus) and Sam Searcy (D-Wake), helps level the playing field between landowners and local governments by integrating permit choice and vesting laws to ensure that the rules are not changed in the middle of a development project. In addition, the law:
  • Protects landowners against 3rd party rezoning efforts
  • Allows certain claims to bypass the Board of Adjustment and proceed to Superior Court.
  • Places limits on conditional zoning abuse, while preserving flexibility for developers.
• SB 523 — Revenue Laws Clarifying & Administrative Changes, requires Property Management companies to charge and remit RMI sales tax only in the following circumstances:
  1. They provide repair, maintenance, installation services for an additional charge above what is stated in the management contract.
  2. They arrange for a third party to provide the repair, maintenance, and installation services and impose an additional charge for arranging these services.
  3. More than twenty-five percent (25%) of the time spent managing an individual real property during a billing or invoice period is attributable to taxable repair, maintenance, and installation services. The property manager can voluntarily provide a written affidavit to attest that no more than 25% of their services on a given property constitute taxable RMI services, which would clear them of liability for taxation on any portion of the contract amount.

Source: NCHBA & NC Realtors®

Posted on July 30, 2019

Governor Roy Cooper last week signed into law a bill supported by REBIC, the North Carolina Association of Realtors® (NCR), NAIOP Charlotte, BOMA Greater Charlotte, and other industry trade groups, clarifying that residential and commercial Property Management agreements are largely not subject to the state’s Repair, Maintenance & Installation (RMI) sales tax.

SB 523 — Revenue Laws Clarifying & Administrative Changes, passed the General Assembly earlier this month with an amendment that requires Property Management companies to charge and remit RMI sales tax only in the following circumstances:

1. They provide repair, maintenance, installation services for an additional charge above what is stated in the management contract.
2. They arrange for a third party to provide the repair, maintenance, and installation services and impose an additional charge for arranging these services.
3. More than twenty-five percent (25%) of the time spent managing an individual real property during a billing or invoice period is attributable to taxable repair, maintenance, and installation services. The property manager can voluntarily provide a written affidavit to attest that no more than 25% of their services on a given property constitute taxable RMI services, which would clear them of liability for taxation on any portion of the contract amount.

The legislation also provides specific exclusions to RMI services, which help ensure much of the work done by property management companies is not subject to taxation. They are:

Posted on July 25, 2019

Republican Rob Portman of Ohio and Democrat Jeanne Shaheen of New Hampshire reintroduced a bipartisan bill in the Senate last week. S.2137 aims to improve energy efficiency in buildings, industrial facilities, and throughout the federal government.

NAIOP supports legislation that ensures that energy-efficiency building codes are developed subject to the federal rule-making process.

“This bill is a win-win, creating nearly 200,000 new jobs and protecting our environment—all without a single new tax or mandate,” Senator Portman said. Senator Shaheen added: “Our bipartisan legislation would create jobs in the private sector, save families and businesses money, and drastically reduce pollution in a smart, effective and affordable way.”

Posted on July 19, 2019

The Senate Committee on Environment and Public Works held a hearing last week on the need for a multiyear reauthorization of highway transportation infrastructure programs. Expanded infrastructure investment, for surface transportation and for broader infrastructure needs, is one of NAIOP’s 2019 legislative priority issues.

While the issue is often described as an area where bipartisan cooperation is possible, Congress is divided on how to pay for any new programs, and the Trump administration has not submitted a detailed legislative proposal to Congress. 

The Senate committee hearing is a first step in moving legislation reauthorizing highway programs. “It is our shared goal to advance a bill out of committee this summer,” Republican committee chairman John Barrasso (R-WY) said. “In our legislation, we must reduce the time it takes for federal permitting, we need to lower paperwork burdens on states, and we need to incorporate innovative construction approaches and other technologies.”

Posted on July 17, 2019

On July 8, Charlotte City Council voted to approve construction of the first floor of the Charlotte-Mecklenburg Government Center for a collaborative, multidepartmental development permitting facility.

Known as the CLT Development Center, the space will provide developers and design teams access to city review staff in a single location for city development permitting services. This initiative brings together staff from all departments involved in permitting to create a more collaborative culture with new services to better meet customer needs.

“The CLT Development Center is the product of our efforts to have collaborative partnerships with the development community,” said City Manager Marcus D. Jones. “We are excited to bring new, innovative ways to work together to create great projects for Charlotte.”

Posted June 27, 2019

Charlotte City Council voted Monday night on controversial amendments to the Noise Ordinance, but REBIC and our partner associations have successfully advocated for the removal of a highly problematic provision that impacted home builders, developers and general contractors.

Among its many provisions, the amendments under consideration on Monday would allow the Charlotte-Mecklenburg Police Department (CMPD) to designate specific construction sites as ‘chronic noise producers’ and require the creation of a formal plan to mitigate noise impacts on surrounding neighborhoods. This designation is already used (though very sparingly) to address issues that arise with other businesses, like bars and nightclubs.

Click here to read more.

Posted June 26, 2019

The North Carolina Senate this week advanced legislation supported by REBIC, the North Carolina Association of Realtors® (NCR), NAIOP Charlotte, and other industry trade groups that would clarify that residential and commercial Property Management agreements are largely not subject to the state’s Repair, Maintenance & Installation (RMI) sales tax.

SB 523 — Revenue Laws Clarifying & Administrative Changes, passed the Senate on Thursday with an amendment that requires Property Management companies to charge and remit RMI sales tax only in the following circumstances:

1. They provide repair, maintenance, installation services for an additional charge above what is stated in the management contract.
2. They arrange for a third party to provide the repair, maintenance, and installation services and impose an additional charge for arranging these services.
3. More than twenty-five percent (25%) of the time spent managing an individual real property during a billing or invoice period is attributable to taxable repair, maintenance, and installation services. The property manager can voluntarily provide a written affidavit to attest that no more than 25% of their services on a given property constitute taxable RMI services, which would clear them of liability for taxation on any portion of the contract amount.

Click here to read more.

Posted June 18, 2019

Charlotte's planning staff is working on a proposal to amend the City's Tree Ordinance in an attempt to make it easier for urban infill sites to comply. The draft proposal, created through a stakeholder process that included representatives from REBIC, neighborhood groups and environmental advocates, would provide for better integration of trees into small residential and commercial projects, potentially minimizing the need for offsite mitigation. The proposal does not reduce the total amount of trees required on a site, however.

Some of the proposed changes include:

• An option to create an Amenitized Tree Area that can help meet the tree save requirement though an impervious, passive use space.
• The ability to plant trees in alternative locations, such as on rooftops, in planters and plazas, and over parking decks.
• Reduced spacing for street tree planting, when necessitated by site conditions.
• Alternative location options for trees required for parking spaces in urban townhome projects.

The changes would apply only to urban zoning districts (UMUDD, MUDD, TOD, UR, NS, PED and TS), along with any project with ground-floor nonresidential uses. The proposed changes are expected to go to City Council for consideration in September.

Posted June 17, 2019

Last week saw multiple pieces of legislation receive consideration.

House Bill 131 “Repeal Map Act.” received final approval by the Senate on Wednesday. It has now been sent to the Governor for his signature. As we discussed last week, this legislation would formally repeal the state’s Map Act which has been in place for more than thirty years. Enacted initially to give the Department of Transportation the ability to identify land to be used in future transportation corridors, it has been found to have been used to hold lands in perpetuity with no just compensation to the property owner nor actual projects being scheduled/funded. If approved by the Governor, this will be a significant win for property rights in North Carolina.

Senate Bill 573 “Revenue Laws Clarifying & Administrative Changes” received a favorable report from the Senate Finance  and Senate Rules committees this week. Included in this 41-page bill are additional clarifications to the repair, maintenance, and installation (RMI) tax requirements in response to our advocacy on behalf of residential and commercial property managers. The legislation exempts certain RMI from taxation when performed by a property management company and clarifies when the taxes are required to be collected. Specifically, the bill  requires property management companies to charge and remit RMI sales tax only in the following circumstances:

1. They provide repair, maintenance, installation services for an additional charge above what is stated in the management contract.
2. They arrange for a third party to provide the repair, maintenance, and installation services and impose an additional charge for arranging these services.
3. More than twenty-five percent (25%) of the time spent managing an individual real property during a billing or invoice period is attributable to taxable repair, maintenance, and installation services. The property manager can voluntarily provide a written affidavit to attest that no more than 25% of their services on a given property constitute taxable RMI services, which would clear them of liability for taxation on any portion of the contract amount.

Posted on June 10, 2019

On Monday, June 3, 2019, proposed fee changes were presented to the Cabarrus County Board of Commissioners by the Director of Planning and a consultant that assisted with the fee study.  Along with changes in the cost of permit fees, staff is proposing changing new construction permits to a single permit (blanket permits).

On June 19, 2019, Cabarrus County Planning staff is inviting builders to come to an open session from 1-3pm in the Multi-Purpose Room at the Cabarrus County Governmental Center.  During this session staff will discuss why these fees are being proposed, give examples of how fees are charged now, and what the fees would be if adopted as proposed.  Staff will be able to answer any questions and hear any feedback that you have. 

Wednesday, June 19, 2019
1:00 PM to 3:00 PM
Cabarrus County Government Resource Center - Multipurpose Room
65 Church Street S.
Concord, NC 28025

Posted on June 10, 2019

On Monday, June 3, 2019, proposed planning and zoning fee changes were presented to the Cabarrus County Board of Commissioners, based on a recent study evaluating the potential to move to a full cost-recovery model. Along with changes in the cost of permit fees, staff is proposing changing new construction permits to a single permit (blanket permits).

On Wednesday, June 19, Cabarrus County Planning staff is inviting builders to come to an open session from 1-3 p.m. in the Multi-Purpose Room at the Cabarrus County Governmental Center.  During this session staff will discuss why these fees are being proposed, give examples of how fees are charged now, and what the fees would be if adopted as proposed.  Staff will be able to answer any questions and hear any feedback that you have.

Cabarrus County Development Fee Meeting

Wednesday, June 19

1:00 PM to 3:00 PM

Cabarrus County Government Resource Center – Multipurpose Room

65 Church Street S.

Concord, NC 28025

*It is very important that we have a strong showing at this meeting with staff*

 

Posted on May 5, 2019

A significant number of Mecklenburg County property owners will see an increase in their tax bill this year under a budget proposal unveiled recently by County Manager Dena Diorio, which would adopt a tax rate almost 2 cents, or 3.3 percent, above revenue-neutral.

With an average property value increase of more than 50% following a countywide revaluation, the tax rate at which the County would collect the same amount of total revenue (known as the ‘revenue-neutral’ rate) is 59.7 cents per $100 of assessed value. The manager’s budget proposes a rate of 61.69 cents per $100, or 1.99 cents above revenue neutral. The impact of the higher rate means more than 65% of all Mecklenburg County homeowners, and more than 71% of all commercial property owners, will see higher tax bills this year.

Posted on April 30, 2019

The City of Charlotte is considering revisions to its Noise Ordinance that would allow the Charlotte-Mecklenburg Police Department (CMPD) to designate specific construction sites as 'chronic noise producers' and require a the creation of a formal plan to mitigate noise impacts on surrounding neighborhoods.

The changes, approved last week by City Council's Neighborhood Development Committee, are part of an extensive update of the 2011 Noise Ordinance, which also include the creation of noise buffers around schools, churches or health care facilities, and tighter restrictions on the use of amplified sound. In addition to giving CMPD the authority to make the chronic noise designation, the ordinance would create escalating fines for repeat violations and add specific examples of construction equipment for greater clarity.

The  proposed Noise Ordinance changes are available on the City's website. REBIC will be reviewing the ordinance with our general contractor members in the coming weeks to determine how to address the proposed changes.

Posted on April 23, 2019

The Charlotte City Council unanimously approved a new Transit-Oriented Development (TOD) Ordinance, which sets standards for commercial and residential development in the city’s light rail corridor.

REBIC and our members worked closely with City planning staff on the ordinance over the past 18 months, and we are generally pleased with the final product. Many of our suggestions — from changes in maximum parking ratios to additional development incentives — were included in the final draft adopted by Council last week. Our only remaining significant concern remains the 130′ building height limitation, which can only be exceeded through the use of a bonus point system that encourages affordable housing investments, energy efficient construction, or the contribution of offsite infrastructure.

While we support each of these policy goals, we believe City Council should do everything possible to encourage density in our transit corridors, and not restrict itself from considering economic development opportunities that would otherwise be limited by the building height caps in each TOD district.

Click here to read more.