Alert: Effective July 1, 2013 New Law Requires Access Disclosures in Commercial Leases

NEW LEASES MUST STATE WHETHER PROPERTY HAS BEEN INSPECTED BY CERTIFIED ACCESS SPECIALISTUnder newly added Section 1938 of the California Civil Code, commercial property owners are required to state in all leases and rental agreements executed on or after July 1, 2013 whether the property being leased or rented has undergone inspection by a Certified Access Specialist (CASp), and, if so, whether the property has or has not been determined to meet all applicable construction-related accessibility standards pursuant to Section 55.53 of the Civil Code.  Section 1938 only requires disclosure; it does not require that a CASp inspection be obtained.Commercial property landlords in California will need to revise lease and rental forms in order to comply with the new requirements.  The new law fails to define “commercial property,” but we recommend that all new leases include the Section 1938 disclosures to avoid any risk of liability.NEW LAW ADDS PROTECTIONS FOR LANDLORDS AND BUSINESSES IN AMERICANS WITH DISABILITIES ACT CASESThe bill that added Section 1938 (SB 1186) also included provisions intended to curb predatory lawsuits alleging violations of the Americans with Disabilities Act, particularly those filed against small businesses.  These provisions include, but are not limited to, the following:  a ban on “demand for money” letters; a requirement that attorneys send a notice letter listing any alleged construction-related violations at least 30 days before filing a lawsuit; a prohibition on “stacking” of multiple claims to increase monetary damages; a requirement that a plaintiff explain the need for multiple visits to the same business with a known uncorrected barrier to access; and reduced damages against business owners who correct alleged violations within 30 to 60 days of receiving a complaint.

Lim Ruger Closes $60 Million Loan For Acquisition of UCLA Medical Office Building

Lim Ruger served as local counsel in connection with acquisition financing for an East Coast purchaser of a medical office building (“MOB”) in Santa Monica.  UCLA will continue to be the sole tenant of the MOB.  Because the deal was highly leveraged, the loan terms were a key driver for the transaction.  Lim Ruger attorneys John Lim and Marc Manason helped the client to eliminate or scale back burdensome lender requirements regarding lease enforceability.

John Lim Speaks on “Emerging Business Models”

John Lim recently presented “Hybrid Corporations in California as Emerging Business Models for Modern Times” at the Annual Advanced Planning Conference.  The conference was presented by the Professional Advisors Group and attended by CPAs and attorneys from the Greater Los Angeles area.This presentation focused on important features of three new corporate structures, i.e., the benefit corporation, the flexible purpose corporation, and the low profit limited liability company (or “L3C”), and highlighted their similarities and differences.Click here to see the presentation and handout.John Lim IMG_4045 Cropped 

Lisa Yang A Rising Star Again

Litigation partner Lisa Yang was again named a Rising Star in the Southern California Super Lawyers publication for 2013.  This is the sixth year in which she has been selected for the honor.  Ms. Yang is the Vice President of the International Association of Korean Lawyers Overseas Chapter, a past president of the Korean American Bar Association of Southern California, and has served on the board of directors of several community organizations.  Click here to see Ms. Yang’s biography.LJY 2011 cropped   
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