Federal Reserve Raises Interest Rates for Second Time in a Decade

The increase was unanimous and modest, raising the Fed’s key interest rate by a quarter point, from a range of 0.25 to 0.5 percent to a range of 0.5 to 0.75 percent.  It reflects Fed officials' confidence in the strengthening of the U.S. economy and what officials see as budding signs of higher inflation.  Full Story

General Business & Real Estate

L.A. Passes Measure JJJ, The Affordable Housing Mandate

Measure JJJ makes it a requirement that developments that require changes to zoning codes set aside a certain percentage of units available for low-income residents. It also requires these projects to hire workers from the City of Los Angeles, and includes incentives for the developments to be built near public transportation.  Full Story

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Yellen Affirms Interest Rate Hike Likely Next Month

Federal Reserve Chairwoman Janet L. Yellen gave a relatively upbeat assessment of the economy Thursday, further signaling a likely interest rate hike next month.  But she also noted that there is a “great deal of uncertainty” following the election and that she expected it would last for “some considerable time.”  Read More

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L.A. to Update Existing Energy Disclosure Law

The Los Angeles Department of Building Safety (LADBS) has released a draft ordinance that updates the Existing Buildings Energy and Water Efficiency Program to outline a compliance schedule for energy and water consumption benchmarking for privately owned buildings from as small as 20,000 sq. ft., including commercial, multi-family and even industrial.  Read More

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Fed Leaves Interest Rates Alone

Fed leaders decided not to increase the bank's key interest rate on Wednesday at the conclusion of a two-day meeting. The decision was largely expected by economists and investors who bet there was very little chance of a move.  Read More

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How to Solve California's Housing Shortage?

Los Angeles Mayor Eric Garcetti and other supporters hope the relaxed rules will spur backyard home building to combat a housing shortage that, by one estimate, leaves the state annually more than 100,000 new units behind what’s needed to keep pace with soaring home prices.  Full story

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Tech Tax Dies in San Francisco

"I don’t believe in scapegoating one specific industry or one specific group of San Francisco. To me it’s un-American. The housing crisis is not a result of this industry, it is due to a lack of planning,” said Supervisor Mark Farrell.  Full story

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2016 DNC is happening Today through July 28th in Philadelphia

https://demconvention.com/about-the-convention/
DNC Schedule & Speakers
https://www.demconvention.com/event-categories/july-25/
Hillary Clinton selects Tim Kaine as her running mate...
http://www.cnn.com/…/07/22/politics/hillary-clinton-vp-pick/
Tim Kaine's First Speech As Clinton VP Nominee

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FULL SPEECH: Donald Trump Jr. - AMERICA GREATER THAN EVER BEFORE! Republican National Convention

General Business & Real Estate

Hear That Train a Comin’? Metrolink Debuts First of Cleaner, Quieter Trains

The first of 40 new, cleaner-burning Metrolink diesel locomotives arrived on the platform of Union Station earlier this week. The rest of the clean-diesel fleet will be arriving in Los Angeles through 2017 at a total cost of about $280 million.  Full story

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Republican National Convention

2016 RNC is July 18 through July 21 in Cleveland
Viewers Guide:
http://www.cnn.com/20…/…/18/politics/rnc-2016-viewers-guide/
2016 DNC will be July 25th to July 28th in Philadelphia
https://demconvention.com/about-the-convention/

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Donald Trump Selects Mike Pence as VP

The pick sets up a stark clash in styles: a brash presumptive nominee alongside a cautious former congressional leader who's stuck close to conservative orthodoxy. Trump had initially suggested he would wait until the RNC to unveil his VP choice, but Indiana law forced his hand. Candidates can't run for both federal and state office after July 15, meaning Pence had to withdraw his name from his re-election race for governor.  Full story

General Business & Real Estate

County Marijuana Tax for Homeless Services to Appear on November's Ballot

Los Angeles County voters will decide this fall whether to tax marijuana businesses to help pay for housing and health services for the homeless.  Full Story

General Business & Real Estate

Most Marijuana Dispensaries are Cash-Only, and Robbers Know It

The recent killing of a marijuana store security guard in Colorado and the wounding of another guard in San Bernardino are the latest examples of the crime lure posed by cash-only pot dispensaries, industry observers say.  Full story

General Business & Real Estate

Most Marijuana Dispensaries are Cash-Only, and Robbers Know It

he recent killing of a marijuana store security guard in Colorado and the wounding of another guard in San Bernardino are the latest examples of the crime lure posed by cash-only pot dispensaries, industry observers say.  Full story

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L.A. County Office Market Heats Up in Second Quarter

The so-called Brexit vote means that interest rates are likely to stay low for a prolonged period and that international investors could turn away from the European Union and Britain and toward major U.S. cities, Rifkind said.
“L.A.,” he said, “becomes a beneficiary.”  Full Story

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U.S. Economy Rebounds with June Hiring Surge of 287,000

Friday's report showing growth of 287,000 jobs last month -- following revised gains of just 11,000 in May and 144,000 in April -- will bolster confidence among employers and policymakers at the Federal Reserve that the expansion in the labor market and broader economy remain on track.  Full Story

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Beaconomics, a Forecast for the United States and California Economies

Beacon Economics does not see any significant chance of the nation’s current economic expansion ending in the next two years.  “This isn’t to say that issues in the global economy—namely a wobbly Chinese economy and the Brexit—aren’t serious, they are,” said Beacon Economics’ Founding Partner Christopher Thornberg, one of the forecast’s authors. "But these are serious issues that will play out over many years, not a few months, a critical distinction."  Full story

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Facebook is Being Investigated by the IRS

The U.S. Justice Department filed a petition in court on Wednesday to force Facebook to comply with an ongoing IRS investigation into whether the company significantly understated the value of property transferred to an Ireland subsidiary by billions of dollars as part of a complex maneuver to reduce its tax payments. 
Full Story

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L.A.’s Higher Minimum Wage Becomes Law

The increase to $10.50 an hour from $10 is the first of several increases that will eventually raise the minimum wage up to $15 an hour in 2020.
Full story

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L.A. County Extends Ban On Medical Marijuana Cultivation, Distribution In Unincorporated Areas

Medical marijuana dispensaries are already banned in unincorporated areas, although business owners from East Los Angeles who appeared at the meeting Tuesday complained that hasn’t stopped numerous illegal operations from popping up. The new moratorium also bars growing and testing of medical marijuana, and mobile delivery services.  Full story

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Britain Has Voted to Leave the EU – What Happens Next?

The UK’s historic decision to end its 43-year love-hate relationship with the European Union represents a turning point in British history to rank alongside the two world wars of the 20th century.  Read more

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Marijuana LED System

California Lightworks in Canoga Park, California has developed an LED lighting system for growing marijuana.  This solar system is great for hobbyists and small scale growers as well as large commercial growers.  LED lights last longer, use less power and emit less heat than incandescent or fluorescent lights.  The U.S. marijuana business is estimated to grow to $22 billion in the next four years.  Check out this video to see how the Solar System 550 works. 

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City of Glendale California Black Bear Safety Awareness

California black bears are generally timid and docile and just looking for food when they wonder into someone's backyard.  High temperatures will drive bears down from the mountains and into residential areas.  

If you encounter a bear, distance yourself from it and give it plenty of room to pass or withdraw.  Deter it by making loud noises like banging pots and pans together.  Don't put out trash cans the night before trash day.  Store garbage cans in a secure place, and keep garbage cans clean by disinfecting them with bleach or ammonia.  Collect fruit that falls from trees and harvest fruit as soon as possible.  Remove plants that attract bears like those with berries including Dogwood.  Remove bird feeders during Spring and Summer.  Read more

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Brown Wants To Resurrect A Plan To Expand California's Power Grid

San Diego lawyer Michael Aguirre, a former assistant U.S. attorney and San Diego city attorney, argues that the latest effort to integrate more of California’s electric operations with Wyoming, Utah, Idaho and other states isn’t so much about spreading the clean energy gospel but returning the state to the era of manipulated energy markets that led to the 2000-2001 energy crisis.  Full story

General Business & Real Estate 

No Rate Hike. Fed Pares Economic Outlook.

Any movement in interest rates impacts millions of Americans, not to mention the global economy. Mortgage rates move higher, and debt for credit cards and car loans gets more expensive. Savers benefit because they earn a little more interest on their deposits. A rate hike is generally a sign that the economy is closer to full health. Full story

General Business & Real Estate

Marijuana & Real Estate in California and Los Angeles County

The Compassionate Use Act of 1996 allows marijuana use pursuant to a valid doctor's recommendation and does not provide a blanket legalization of marijuana use.  The legal marijuana market earned $2.7 billion in revenue in 2014 and is expected to earn over $10 billion in sales by 2018.  Marijuana is permitted for medical use in 23 states and D.C., and four states (Alaska, Colorado, Oregon and Washington) have recreational laws.

The marijuana industry needs lots of land and business are willing to pay top dollar to get it.  There is a need for cultivation, product manufacturing, dispensaries (collectives) and kitchens.  In order to operate a marijuana business, the operator must be in compliance with state and local laws.  California law permits personal marijuana cultivation for patients.  Refer to Senate Bill 420. 

Why would a seller/landlord want to sell or lease to a marijuana operator?  Because marijuana operators usually pay cash and they are usually willing to cooperate with additional demands, and they generally pay on time.  They also will usually agree to sign an indemnity contract to release the landlord from liability. 

In Los Angeles county, a dispensary cannot be located within a 1,000-foot radius of a school, playground, park, library, place of worship, child care facility, youth facility (hostels, camps, clubs etc...) or within a 1,000-foot radius of another dispensary. 

A few things a landlord can do to protect themselves.  Make sure the operator is legal under state law.   Ask the operator for proof of insurance.  Draw up a contract to protect the landlord (indemnity clause).  Have a security system installed.  Verify proper building permits.  Inspect the building periodically.  Note that it is not legal to lease to a tenant who violates a local ordinance that prohibits marijuana businesses. 

Demand for commercial and industrial buildings by marijuana operators is on the rise.  Many cities are reviewing their ordinances in preparation for recreational laws to pass and to take into account factors like increased tax revenue. 

This post is for informational use only.  Reader to independently verify the contents of this post and consult legal counsel. 

General Business & Real Estate

Apartment News

What More Can the City of L.A. Do to Hurt Housing Providers?
http://www.aoausa.com/magazine/?p=3768
Know the Difference Between a Repair and An Improvement
http://www.aoausa.com/magazine/?p=3734
Unlocking Hidden Tax Benefits in your Apartment Investments
http://www.aoausa.com/magazine/?p=3727
Opportunities and Hazards in Estate Planning for Apartment Owners
http://www.aoausa.com/magazine/?p=3635

General Business & Real Estate

Projects Under Construction in the City of Pasadena, California

Here is an economic activities update on proposed development and projects under construction in the city of Pasadena, California. Product types include hotels, office, housing, and academic and institutional. 

General Business & Real Estate

Hotels
Proposed hotels include a five-story, 144-room Marriott Extended Stay Hotel at Fair Oaks Avenue and Walnut Street. At the former Macy's site, construction of Hyatt Place, a six-story hotel with 179 rooms, is scheduled to begin sometime in 2016. There is also a hotel planned at Hill Avenue and Colorado, and construction of the Kimpton Hotel is planned at the site of the Julia Morgan YMCA building. The Kimpton is designed to be 88,740 square feet, four to six-stories and have 180 rooms. It is scheduled for completion in 2017. 

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Office
At Walnut Street near Fair Oaks, Ayzenberg will be expanding its creative office space. There will be 155,000 square feet of new office space for Alibaba at 680 East Colorado Boulevard. A five-story building with 112,000 square feet of medical office space and 16,000 square feet of ground floor retail is planned for Crown City Medical Center. There are plans to renovate and reposition several office buildings, for example at 150 Orange Grove. At Lake and Colorado, the Constance Hotel will be renovated which includes a hotel addition with restaurant/retail space, and new offices as the last phase. At Lincoln and Parsons (100 West Walnut Street), there are plans for 620,000 square feet of office uses, 40,000 square feet of restaurant and retail uses and 475 residential units which will start construction in 2016. 

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Housing
Proposed housing projects include a mixed-use, five-story project with 201 apartments and 10,000 square feet of ground floor retail at 25 West Walnut, 131 apartment units with 5,000 square feet of retail/restaurant space at Union Village (Union and El Molino), and an additional 131 apartment units with 5,000 square feet of retail/restaurant space at the intersection of Allen and Walnut, a four-story building with 212 apartments and one level of subterranean parking at 3330 East Foothill Boulevard, condominiums at the former Macy's site on the Southwest corner of Los Robles and Colorado, 186 housing units at Union Street and Madison, 115 housing units at 711 East Walnut with subterranean parking, infill housing at 700 East Walnut Street, 277 North Molino Avenue, 770 East Walnut Street, 130 North Fair Oaks Avenue, 33-45 West Green Street, the site of the Green Hotel Apartments as well as at the intersections of Corson and Oakland, and Del Mar and Los Robles.

General Business & Real Estate 

Academic and Institutional
Shriners for Children Medical Center, a 74,800 square foot medical building, is slated for completion in 2016 at 909-915 South Fair Oaks Avenue. The Art Center College of Design will expand its south campus, student housing, studios and classrooms. Huntington Medical Research Institute, a 35,000 square foot medical laboratory at Fair Oaks Avenue and Congress Street, is scheduled for completion in 2017. 

General Business & Real Estate 

Saudi Arabia Invests $3.5 Billion into Uber

The oil-rich nation will get a seat on Uber's board of directors.  Uber says its ride-hailing service now operates in nine countries of the Middle East, one of its fastest-growing markets. In Saudi Arabia, which does not allow women to drive, 80% of Uber passengers are women. Full story

Subsidized Rent Vouchers Go Unused

The Los Angeles Times reports that rents have soared above federal voucher caps, $1,150 for one bedroom units and $1,500 for two bedroom units.  With the county vacancy rate only at 2.7%, voucher holders can't find apartments.  Full story

General Business & Real Estate

Trump Reaches the Magic Number to Clinch Nomination

Donald Trump on Thursday reached the number of delegates needed to clinch the Republican nomination for president, completing an unlikely rise that has upended the political landscape and sets the stage for a bitter fall campaign.  Full Story

General Business & Real Estate

City of Los Angeles Seismic Retrofit Program

Click here to get the Tenant Habitability Plan (THP) Cost Recovery Guide for Property Owners.  The guide provides an overview of the City of Los Angeles THP administered by the LA Housing Community Investment Department (HCIDLA).
The guide answers these questions:
What is the THP?
What do I do when I receive a seismic retrofit order?
When and how do I file a THP?
What is included in a THP?
How to apply
How the program works
How cost recovery applications are processed
HCIDLA Contacts
Building & Safety Contacts

General Business & Real Estate

City of Los Angeles Rent Stabilization Ordinance (RSO) 2016

Click here for more information and to read about new laws for 2016.  Read about RSO exemptions, registration fees and how to pass them through to tenants, allowable rent increases, the impact of capital improvements and seismic retrofitting, eviction laws, relocation assistance amounts, free workshops and more.

General Business & Real Estate