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QUARTERLY BULLETIN / WINTER 2023

"Be hopeful. Be optimistic. Never, ever be afraid to make some noise and get in good trouble, necessary trouble. We will find a way to make a way out of no way."

— John Lewis


At Somos, we take inspiration from the civil rights champions—people like John Lewis. The concept of "good trouble" is a guiding value for us at Somos as we work to have this kind of impact on the world though our important client work and partnerships with all of you. Through questioning the world as it is, we can imagine a world as it might be. This year was a spectacular start for all of us at Somos, beginning with a process of reimagining a better world as an essential component of delivering exemplary work, practical solutions and outstanding business results for our clients. We are so thankful that you have been our partners in this new adventure, and we wish you a festive holiday season and share hopes for a new year that finds peace in the world and prosperity here at home.

IN FOCUS

Somos by the Bay: Our New San Francisco Office is Now Open

Our industry-leading innovative work and creative solutions has a new brick-and-mortar home on California Street with the opening of the Somos office in San Francisco.

465 California Street, San Francisco

Located in the historic Merchant Exchange Building at 465 California Street, the new office provides a centralized hub from which Somos can better serve our clients.


"I am thrilled to be opening our Somos SF office. As a person born and raised in the City, downtown has been the backdrop to some of my fondest memories," said Somos Principal Ontario Smith. "Today, it is special to be a part of the City’s recovery and to continue serving a community that has been so important and impactful to me. San Francisco is evolving and as we rebuild this beautiful city, we must do so with an eye toward justice and equity."


"The San Francisco Somos office is a testament to our belief and our dedication to the City and the Bay Area," said Somos Principal Ramneek Saini. "We know, even with our current struggles, there is nowhere else in the world like San Francisco. We have built our careers here. It was a natural next step to open an office in a City that we deeply care about. San Francisco’s recovery has already turned the corner and we are ready to continue to grow right alongside it.” 

Somos Hosts Commissioner Lara for Affordable Housing Insurance Roundtable

Somos was proud to host a roundtable discussion in our San Francisco office with the region’s largest affordable housing developers and Insurance Commissioner Ricardo Lara to discuss how rising insurance costs are increasingly an obstacle to housing developments in the Bay Area. Somos Principal Ramneek Saini led the discussion.


The meeting was part of a series of roundtables and community conversations Somos is convening to facilitate dialogue among industry leaders and decision-makers on important challenges and opportunities in land use and real estate law. This event follows our initial roundtable on the same topic held at our LA office in August.

Attendees included developers, representatives from City Hall, nonprofit housing organizations, and advocates. Several issues were discussed, including year-over-year rate increases, builder's risk exclusions, and the narrowing of insurance markets because fewer insurers are providing coverage. Attendees explored collaborative solutions that can remove barriers to building affordable housing and help more Californians secure a roof over their heads. 


At Somos, we pride ourselves on being a bridge between our partners, clients, and leaders as we tackle some of the biggest challenges to housing development in California and beyond.

Somos Hosts L.A. City Councilmember Marqueece Harris-Dawson


Founder and CEO Alfred Fraijo Jr. and the Somos team were honored to bring Councilmember Marqueece Harris-Dawson to the Bradbury Building office for a lively discussion with community leaders in November.

"Land use is about human beings, not about buildings," Harris-Dawson told the group.


With these words and other comments, he eloquently expressed what amounts to a core belief for all of us at Somos: lived experience is an essential part of creating policy that serves the entire community—especially those who have been marginalized by social and economic discrimination. His comments emphasized the importance of civic engagement and participation in the policy-making process to create a more equitable, sustainable and inclusive city for all. Somos was honored not only by his presence, but also by his insightful remarks about politics, community and public service.


INDUSTRY UPDATES

by Derek Galey, Patricia Ortega, and Jade Tolar

Los Angeles Affordable Housing Streamlining Ordinance: On November 16, the Los Angeles City Planning Commission recommended approval of the proposed Affordable Housing Streamlining Ordinance, which would amend the Los Angeles Municipal Code to establish an administrative review process for 100-percent affordable projects that meet specific criteria and performance standards. The proposed ordinance would codify certain provisions of Mayor Karen Bass’s ED1 and ensure that the streamlining benefits continue to be accessible to affordable housing projects.

Click here to read the latest on the Ordinance

Developers Sue Cities over Builder’s Remedy and Density Bonus Law: Developers have recently filed complaints against two cities challenging the cities’ applications of state land-use laws. In 9300 Wilshire LLC v. City of Redondo Beach developer Leo Pustilnikov alleges that the City improperly imposed zoning rules contrary to the Builder’s Remedy provision of the Housing Accountability Act. In 2700 Sloat Holding LLC v. City and County of San Francisco developers John and Realynn Hickey allege that the City violated the State Density Bonus Law by denying a 50-story residential tower in the low-rise Sunset District. The cities of San Francisco and Redondo Beach filed responses on September 25 and November 17, respectively.

U.S. Supreme Court to Review California Impact Fees: In September, the United States Supreme Court granted the petition for a writ of certiorari to review a decision by the California Court of Appeal, Third Appellate District, approving El Dorado County's Traffic Impact Mitigation Fee Program. In 2016, Petitioner George Sheetz applied for a permit to build a home in Placerville and challenged the requirement to pay $23,420 in traffic mitigation fees. His petition asks the Supreme Court to apply the individualized determination of the Nollan / Dolan unconstitutional conditions doctrine to legislatively-mandated impact fees under the California Mitigation Fee Act. The Court’s decision could have a major impact on California agencies’ ability to impose development impact fees. The case is set for argument on January 9, 2024.

Trucking Regulatory Developments: In September, the South Coast Air Quality Management District announced it will enforce the Warehouse Indirect Source Rule, which requires large warehouses to mitigate air pollution caused by truck traffic. Of the 2,000 Southern California warehouses subject to the rule adopted in 2021, 1,400 are currently out of compliance. An Economic Roundtable report released in September tied warehouse development and associated diesel truck emissions to health impacts in burdened communities and recommended rapid fleet electrification.

Click here to read the Economic Roundtable report

California's SB4: In October, California Governor Gavin Newsom signed SB4 into law, granting broad powers to educational and religious institutions to build affordable housing on their campuses. The legislation makes it possible for these institutions and organizations to develop 100% affordable housing projects "by right," significantly streamlining the development and building process. The governor signed the bill as part of a package of bills aimed at helping with the state's housing crisis by simplifying and expediting the construction of affordable housing.

Read more from the Terner Center about the possible impact of SB4 

INSIGHTS

California Invests $757 Million to Create Affordable Housing and Clean

Transportation


by Jonathan Zuniga


Governor Newsom's late-summer announcement, in collaboration with the California Strategic Growth Council, of a substantial investment of $757 million to aid in the creation of affordable housing in safe and job-rich neighborhoods takes a significant step toward making California's future more affordable. 


This large capital investment will be used to help create over 2,500 affordable homes, 150 zero-emission buses, the construction of 50-plus miles of new bikeways, and sidewalk improvements across various communities. It will impact local economies and generate job opportunities that can potentially have long-lasting positive effects. The distribution of the $757 million across more than 16 communities will enhance stability, public transportation options, and the creation of much-needed parks and green spaces. These improvements will directly benefit California's veteran population, elderly residents, and families with children who currently lack access to these vital resources, thereby addressing longstanding disparities.


This funding was awarded from cap-and-trade revenues through the Affordable Housing and Sustainable Communities Program pursuant to the Round 7 Notice of Funding Availability. Please reach out to us for assistance in navigating program requirements in future funding rounds.

OUT & ABOUT

November 15: We are absolutely beaming with pride! Somos Law Partner and Co-founder Kira Teshima Conlon received the National Asian Pacific American Bar Association Best Under 40 Award at NAPABA’s 35th Annual Convention in Indianapolis, Indiana. Congratulations Kira!

October 12: Somos Advisors Principal Ramneek Saini had the honor of participating in an important discussion between California's new U.S. Senator Laphonza Butler and Bay Area Labor leaders. The meeting was hosted at SEIU Local 1021 in San Francisco.


Ramneek was invited by Somos client and friend, President of SEIU Local 87 Olga Miranda, who has an organizing history with Senator Butler. We are proud to be at the table with our friends in Labor during important conversations like these about the future of our state!

October 16: Somos Senior Planner James A. Castañeda, AICP and Director of Planning Reuben Duarte were in New Mexico attending the launch of the Climate Investment Center where they had the opportunity to meet New Mexico Governor Michelle Lujan Grisha and Martin Chávez, Governor Grisham’s infrastructure advisor. They discussed renewable energy and learned more about the state’s efforts to expand electric vehicle infrastructure throughout New Mexico.

September 12: Somos Advisors Principal Ontario Smith facilitated the Leadership San Francisco retreat in Santa Cruz. Leadership San Francisco is a community service program operated as a nonprofit affiliate of the San Francisco Chamber of Commerce. Ontario is a proud 2010 graduate of the program. Each year, about 60 community leaders are selected to participate in the 10-month program. Participants are challenged to increase their understanding of the environment in which they live and work, and to learn how to respond effectively to community issues.

Don't miss a Somos moment - click here to follow us on LinkedIn!

WHO WE ARE


We are thrilled to welcome Managing Counsel Tetlo Emmen and Legal Intern Patricia Ortega to Somos!

Tetlo Emmen will help lead and grow the real estate transactional practice at Somos and also serve as managing counsel.



He joins Somos from Big 5 Sporting Goods, where he was vice president and corporate counsel.


Prior to Big 5, Tetlo was with the firm Sheppard Mullin, where his work focused on transactional real estate, land-use planning, zoning and entitlements, general real estate matters, administrative law and governmental relations.


Tetlo grew up in the South Bay and received his bachelor’s degree in Global Studies from the University of California-Santa Barbara and his J.D. from UCLA School of Law.


In college Tetlo was a local DJ, spinning at clubs, parties and a hosting a short lived hip-hop show on UCSB’s college radio station at 1 am. He loves sports, especially talking and playing soccer. He also organizes a small whiskey club and collects whiskey and brandy. Mostly now though he spends his free time chasing around his 7-month-old daughter, Naomi.

Patricia Ortega is in her final year at Loyola Law School and earned a bachelor’s degree in Communications from UCLA in 2019. In addition, she is an associate researcher, strategy advisor and outreach director for Maroon Society Research Inc. She joins Somos as a legal intern.


As a law student at Loyola, Patricia received mediation training that satisfies the Dispute Resolutions Program Act and is a civil matters Mediator and Conciliator for low-income individuals. Patricia's work includes assisting in landlord-tenant issues. In the midst of the city’s housing crisis, many of the hardest-hit individuals—especially lower-income, monolingual Spanish-speaking residents—cannot afford legal counsel or even low-cost services to fight their cases. Patricia has been working to provide free-to-very-low-cost solutions to community members by mediating or conciliating landlord-tenant settlements.


She also recently became a resident Mediator at Homeboy Industries Headquarters. Her work includes educating Homeboy members and staff about alternative communication strategies when faced with conflict.


A native of Madrid, Spain, she has lived in Los Angeles since 2013.

Somos Group is a company of multidisciplinary professionals dedicated to partnering with public- and private-sector clients to build and sustain community resilience, promote economic development, increase social equity and accelerate prosperity. Somos Law Group offers a diverse range of real estate, land use, and environmental legal services. Somos Advisors provides professional expertise in multiple disciplines: research, strategic planning, land use, communications, outreach and engagement, and government advocacy. Somos Group leverages the combined expertise, experience and knowledge of Somos Law Group and Somos Advisors to deliver clients professional counsel, advice and support that transcends traditional disciplines.

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Somos has created this website and related bulletins including Somos Framework for general education and knowledge purposes only. Because Somos includes Somos Law Group, a law firm, and some of the information provided relates to legal topics, please be aware that Somos is not creating an attorney-client relationship with you when you use our website or our bulletins, alerts and other publications. By using our bulletins, you agree that the information does not constitute legal or other professional advice and no attorney-client or other relationship is created between you and Somos. The laws and policies discussed are constantly changing and information provided on this website and bulletins may be changed without notice and is not guaranteed to be complete, correct or up-to-date. While we try to revise our bulletins on a regular basis, it may not reflect the most current legal developments. We urge you to consult with the authors of our bulletins or your Somos representative.