Relating to certain municipal regulation of conversion of certain office buildings to mixed-use and multifamily residential occupancy.

Contracts

• Purchase & Sale Agreements (PSAs): Remove "rezoning" contingencies for eligible assets; replace with "administrative permit approval" contingencies. Shorten due diligence periods regarding land use.
• Architectural & Engineering: Amend Master Services Agreements to explicitly exclude Traffic Impact Analyses (TIAs) and traffic mitigation studies, as these are now legally prohibited requirements.
• Design Standards: Direct architects to design strictly to the International Building Code (IBC). The law prohibits municipalities from imposing design standards (e.g., exterior materials, articulation) stricter than the IBC.

Hiring/Training

• Permitting Teams: Train staff to file for administrative review only. Do not submit applications to the Planning Commission or City Council unless a variance is required for reasons *unrelated* to the conversion use.
• Architects: Design teams must be trained on the "65% Rule." Compliance is calculated per floor. Architects must certify that at least 65% of *each* floor intended for occupancy is converted to residential use.

Reporting & Record-Keeping

• Eligibility Affidavit: Create a standard affidavit for your file proving the building is:
• 1. At least 5 years old (Certificate of Occupancy or Tax Records).
• 2. Currently used "primarily" for office use.
• Floor-by-Floor Analysis: Maintain specific square footage calculations for every floor to prove the 65% residential threshold is met, preventing municipal rejection based on mixed-use ratios.

Fees & Costs

• Budget Reductions: Remove line items for Traffic Mitigation Fees and Traffic Impact Studies from your pro formas.
• Legal Contingency: Allocate budget for potential litigation. While operational costs drop, you may need to file for injunctive relief if a city refuses to process the application administratively.