After submission of the Compliance Verification Report, the building owner has the ability to download a Disclosure Summary Sheet and other related disclosure documentation from the CEC's website. The Disclosure Summary is valid for a period of 30 days from the date it is generated. The Disclosure Summary Sheet must be provided (1) to a buyer or lessee of the applicable building within 24-hours of execution of a purchase agreement or lease or (2) to a lender concurrently with any application for a loan that will be secured by the applicable building.

Energy Efficiency Standards.

The Title-24 updates also include new energy efficiency standards that directly impact new construction, additions and alterations of existing residential and nonresidential buildings. As expected, many of the changes focus on reducing the demand for electricity during peak periods. A few of the more notable standards include, but are not limited to, requiring commercial building operators to: install lighting that is programmed to automatically reduce power consumption during certain periods of demand; utilize occupancy sensors and controls in certain areas within warehouses, libraries, non-residential corridors and parking garages (depending on the type and size of the building, the lighting controls in the spaces must be used to reduce lighting power by at least 50% during periods in which the spaces are unoccupied); and prohibit buildings that are not continuously operated for 24-hours per day, 7-days per week from keeping lights on at night or on weekends (with an exception for office buildings that operate 24-hours per day but only within designated areas of ingress and egress).

Accessibility Standards.

For accessibility purposes, the Title-24 update is primarily intended to conform the California standards to the Federal standards under the Americans with Disabilities Act (although some of the requirements have been in effect since 2012). The new changes include, but are not limited to, modified standards for drinking fountains, the proportion of characters for visual or tactile signs and the accessibility of restrooms. The standards generally apply to: any publicly funded building, structure or improvement; any privately funded commercial buildings; and public and private housing made available for public use.

Do not wait to learn how the standards will apply to you. Reach out to your professional advisors now to develop your internal strategies. July 1st will be here sooner than you think.

Michael C. Polentz is Co-Chair of the Real Estate & Land Use Practice Group at Manatt, Phelps & Phillips, LLP, located in the Palo Alto office. Joshua C. Taylor is a senior associate in the Real Estate & Land Use Practice Group at Manatt, Phelps & Phillips, LLP, located in the San Francisco office.