LOS ANGELES-A new state law that takes effect soon may potentially provide headaches for building managers or owners who want to sell, lease or refinance.
Starting July 1, owners or managers of non-residential buildings over 50,000 square feet will need to disclose their site's energy usage in advance of any sale, lease or refinancing. While the new regulations don't carry civil or criminal penalties, they could potentially delay closings or impact contractual disputes.
The regulations of California Assembly Bills 1103 and 531, which passed in 2009 but required industry input and time to set up the new program, will require building owners and managers to register each property owned with the U.S. Environmental Protection Agency's Energy Star online Portfolio Manager program at least 30 days in advance of a transaction.
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