Upcoming Changes to ADA May Impact Landlords
For the first time in 20 years, the regulations for accessible design under the Americans with Disabilities Act (ADA) have been revised. Compliance with the new ADA Standards for Accessible Design (ADA Standards) may be required by March 2012. These changes may have significant impact on existing and new leases.
The new regulations were enacted on July 23, 2010, and while businesses had the option to start complying with the new standards beginning in September of 2010, mandatory compliance is not required until March 15, 2012. The revamped rules include non-discrimination provisions that apply only to places of public accommodation, such as stores, restaurants, movie theatres and the like, and standards for accessible design that apply to all facilities. Compliance with the ADA Standards are likely to create the bigger concern for landlords.
Unlike building codes, compliance with the ADA Standards cannot be grandfathered. Although there are “safe harbors” for businesses and property owners of existing facilities, there are also exceptions to the safe harbors. Of particular concern for landlords is the removal of architectural barriers and which standards, 1991 or 2010, need to be met. Leases should be reviewed carefully to determine whether ADA compliance is the responsibility of the tenant or the landlord. There are tax incentives available for small businesses to assist in financing ADA compliance which could impact negotiations between landlord and tenant.
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