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Real Estate & Construction News Round-Up (02/08/23) – The Build America, Buy America Act, ESG Feasibility, and University Partnerships

February 27, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up explores President Joe Biden’s recent State of the Union address and plans for the Build America, Buy America Act, the feasibility of real estate companies achieving their ESG goals, and how developers, lenders, and tenants are partnering with universities to solve real estate challenges.

• During his annual State of the Union address, President Joe Biden detailed his Build America, Buy America plans and standard to require all construction materials on federal infrastructure projects to be made in the United States. (Jennifer Goodman & Zachary Phillips, Construction Dive)
• Speculation surrounding the economic environment and real estate stability is testing the feasibility and resilience of the environmental, social and corporate governance (ESG) framework used by corporations to measure their societal impact. (Anna Staropoli, Commercial Observer)
• Adopting Web3 and decentralization in the real estate industry is projected to bring about significant changes and improvements. (David Bitton, Forbes)

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Low Interest Rates Encourages Homeowners to become Landlords

June 18, 2014 — Beverley BevenFlorez-CDJ STAFF
CNN Money reported that more homeowners are deciding to keep their homes rather than sell, and become landlords instead. "Clients tell us all the time, 'We're never going to sell our home, even after we buy a new one,'" Glenn Kelman, CEO of the brokerage, Redfin, told CNN Money. “The math works in most landlords' favor these days,” according to CNN Money. “Rents have risen by about 20% nationwide since mid-2006, the housing bubble peak, while home prices are still about 21% below what they were at that time.” Read the court decision
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Hundreds of Snakes Discovered in Santa Ana Home

February 04, 2014 — Beverley BevenFlorez-CDJ STAFF
404 Snakes—more than half dead—were discovered after a “nearly daylong search” in a home in Santa Ana, California, reported the Los Angeles Times. “Over the past few months, neighbors called authorities about the foul odor,” claimed the Orange County Register. “They thought it was trash. Then Jehovah’s Witnesses knocked on the door.” Concerned that someone might have died, they called the police. William Buchman, the homeowner, “identified as a snake breeder, was arrested on suspicion of animal cruelty, a felony,” according to the Los Angeles Times. Police wore gas masks and “clutched Tasers” as they entered the home. “Rats scampered over furniture and scores of clear plastic boxes holding the snakes lined the walls.” The Orange County Register claimed that up until recently Bachman was a “regular joe.” A neighbor said, “Let me tell you, Bill was a nice guy, outspoken, knowledgeable. He talked to my grandkids about school.” According to the Los Angeles Times, Buchman’s mother died in 2011, which appeared to “have affected him profoundly.” Read the full story at The Los Angeles Times... Read the full story at The Orange County Register... Read the court decision
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ZLien Startup has Discovered a Billion in Payments for Clients

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
The New Orleans startup company zlien “tracks liens for contractors through an online service” and has “secured more than $1 billion in payments for clients on 33,000 construction projects” according to its founder Scott Wolfe, as reported by The Times-Picayune. When Wolfe practiced law, he noticed “an absence of any centralized service to help firms comply with lien procedures.” Wolfe “saw construction companies hiring small operators, in what he called ‘a very manual, service business,’ to track liens in different states, running the process inconsistently or failing to collect on some liens at all.” Wolfe has entered zlien into “New Orleans Entrepreneur Week on March 28 for the Coulter IDEAPitch, a business competition in front of what The Idea Village organizers describe as an invitation-only audience of ‘world-class investors’ focused on ventures with high growth prospects.” Wolfe told The Times-Picayune that “not getting paid is a central problem in construction. That is something that really strains the construction industry." Read the court decision
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Under the Hood of U.S. Construction Spending Is Revised Data

January 06, 2016 — Vince Golle – Bloomberg
Here’s one key takeaway from the Commerce Department’s report Monday on U.S. construction spending. The 0.4 percent decrease in November, which itself was weaker than the most pessimistic Bloomberg survey forecast, was accompanied by downward revisions to prior months. The combination suggests some economists may revise down their fourth-quarter GDP tracking forecasts. * October construction spending rose 0.3 percent, compared with a prior estimate of 1 percent, while September outlays advanced 0.2 percent versus a previous estimate of a 0.6 percent gain Read the court decision
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Safety, Compliance and Productivity on the Jobsite

November 18, 2019 — Matthew Ramage - Construction Executive
With any project, managing a large contingency of workers—all with varying levels of security clearance—can be a logistical headache. On the majority of construction sites, managers lack the resources to quickly and accurately identify all onsite personnel and ensure the right labor, equipment and materials are in the right place at the right time. Equally important, construction managers need to know if worker certifications are current and only allow access to authorized areas. Multiple factors compound the need for better transparency across the workforce, including:

• Safety. Construction work is inherently dangerous. In 2017, nearly 1,000 fatalities occurred on construction sites. This means that the industry accounted for more than 20% of private sector fatalities across all industries.
• Regulatory. The Federal government has a heightened awareness of jobsite dangers and is targeting companies that are not making every effort to maximize the workers’ safety.
• Security. Sites in urban environments require round-the-clock protection from urban explorers, thieves and the general public.
• Employee wage disputes. Lawsuits and disputes over wages and hourly employment are increasing.
• Reduced productivity. It can be difficult to measure and track productivity in construction.

Reprinted courtesy of Matthew Ramage, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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After More than Two Years, USDOT Rejects WSDOT’s Recommendation to Reinstate Non-Minority Women-Owned DBEs into DBE Participation Goals

February 24, 2020 — Ellie Perka - Ahlers Cressman & Sleight PLLC
For the past several years, Ahlers Cressman & Sleight has been closely following news of Washington State Department of Transportation’s (“WSDOT’s”) exclusion of non-minority women-owned Disadvantaged Business Enterprises (“DBEs”)[1] from qualifying toward Condition of Award (“COA”) Goals on federally-funded projects. See ACS’s letter of January 9, 2014 and blog articles of June 2, 2017 and September 21, 2017. In a striking—and long awaited—decision issued just days ago, USDOT rejected WSDOT’s recommendation to unwind the exclusion of non-minority women-owned DBEs from COA Goals, meaning women-owned DBEs in Washington remain excluded from DBE COA participation goals until September 2020. As background, the DBE program is a program created by Congress with the goal of increasing women and minority-owned business participation in federally-funded transportation contracting. To withstand constitutional scrutiny, each state must tailor its program to the specific discrimination found to exist in that state.[2] To that end, every three years, WSDOT must conduct a “Disparity Study,” aimed at statistically measuring the “discrimination” in the marketplace. Read the court decision
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Reprinted courtesy of Ellie Perka, Ahlers Cressman & Sleight PLLC
Ms. Perka may be contacted at ellie.perka@acslawyers.com

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Two Injured in Walkway Collapse of Detroit Apartment Complex

May 30, 2018 — Beverley BevenFlorez-CDJ STAFF
ABC WXYZ Local News reported that a balcony collapsed at the Anthoes Garden Apartments in Detroit, Michigan. Two people were witnessed falling from the upper walkway through the second and third floors, landing on the cement, sidewalk below. Neighbors pulled the thirty-something woman out of the debris, but the sixty-something man remained trapped under cement chunks and told the rescuers that he could not breathe. The neighbors used car jacks to raise the cement blocks to relieve pressure while waiting for help to arrive. Firefighters rescued residents from the apartments. The fire marshall condemned the building. However, according to ABC News, "people who live in apartments nearby are afraid to leave because of the walkway's instability." Read the court decision
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