U.S. compliance for real estate developers

Principal findings (high-level, necessary for drafting the requested blog/newsletter): - Beneficial ownership reporting (FinCEN/Corporate Transparency Act): As of March 26, 2025, FinCEN issued an interim final rule narrowing "reporting company" to certain foreign-formed entities; FinCEN removed the BOI reporting requirement for entities created in the U.S. (previously called domestic reporting companies).

New deadlines apply for foreign reporting companies; guidance and FAQs remain important to review to confirm applicability. - Environmental permits and water discharges (EPA/NPDES): Developers whose projects result in discharges to "waters of the United States" or that trigger stormwater/runoff controls must follow the NPDES permitting program (state-run in many jurisdictions).

Identify state NPDES implementation and local MS4/stormwater permit requirements early in project planning. - Fair housing and non-discrimination (HUD/FHEO): Developers doing residential projects must comply with the Fair Housing Act (anti-discrimination) and related HUD guidance; this affects marketing, tenant selection, design for accessibility, and reasonable accommodation policies. - Construction safety (OSHA): Construction is a high-hazard industry; developers must ensure contractor compliance with OSHA standards (fall protection, trenching/excavation, silica, PPE, crane safety, etc.), maintain site safety programs, and plan for training and inspections.

OSHA guidance and National Emphasis Programs are important compliance drivers. - State contractor licensing and consumer protections (CSLB example): State contractor licensing, renewal, payment limits for home improvement, complaint and enforcement processes, and state-specific continuing updates (laws effective 2026, licensing classes) demonstrate the need to track state board rules and local ordinances.

Contractor licensure and unlicensed-activity penalties differ by state; include state-level links and requirements in the final content. - Zoning, building codes, permits, local land-use entitlements: State and local zoning, building codes (often based on model codes like I-Codes), and permitting processes drive timing and compliance—developers must coordinate entitlements, environmental review (CEQA/NEPA where applicable), traffic/stormwater/utility mitigation, and inspections. - Tax, securities, and transactional compliance: Developers must coordinate federal and state tax treatment (entity choice, depreciation, like-kind exchange rules where applicable, FIRPTA for foreign sellers), and securities/regulatory compliance if raising capital (SEC private placement rules, state blue-sky laws).

Consult tax and securities counsel depending on capital structure. - Practical compliance program elements: entity and license verification, zoning/permitting checklists, environmental due diligence (Phase I/Phase II ESAs), stormwater/erosion control plans, safety/OSHA programs, HUD/Fair Housing and ADA accessibility checks, contract provisions (indemnity, insurance, lien waivers), documentation and record retention, and regular legal/third-party audits.

Recommended next steps to complete the deliverable (blog post + newsletter + state-specific guidance): - Draft a comprehensive blog post organized by stages of development (pre-acquisition due diligence, entitlement/permitting, construction compliance, lease/sales/operations & ongoing regulatory reporting), with specific checklists in each stage. - Include a short state-specific section explaining where to find licensing/permit requirements and provide state examples (e.g., CA CSLB, NY DOB/State agencies, TX TDLR/TREC, FL DBPR, IL IDFPR) and links for the most-searched states. - Provide an actionable compliance checklist for LLC founders/business owners (entity formation, BOI check, licensing, permits, environmental, OSHA, HUD, tax & securities considerations). - Add a brief "red flags and penalties" section summarizing common enforcement risks, typical fines/penalties and mitigation strategies (stop-work orders, loss of lien rights, civil penalties, criminal liability in fraud cases). - Recommend retaining local counsel, third-party environmental and safety consultants, and an internal compliance owner, with suggested frequency for audits and document retention periods.

Principal findings (high-level, necessary for drafting the requested blog/newsletter): - Beneficial ownership reporting (FinCEN/Corporate Transparency Act): As of March 26, 2025, FinCEN issued an interim final rule narrowing "reporting company" to certain foreign-formed entities; FinCEN removed the BOI reporting requirement for entities created in the U.S. (previously called domestic reporting companies).

New deadlines apply for foreign reporting companies; guidance and FAQs remain important to review to confirm applicability. - Environmental permits and water discharges (EPA/NPDES): Developers whose projects result in discharges to "waters of the United States" or that trigger stormwater/runoff controls must follow the NPDES permitting program (state-run in many jurisdictions).

Identify state NPDES implementation and local MS4/stormwater permit requirements early in project planning.

- State contractor licensing and consumer protections (CSLB example): State contractor licensing, renewal, payment limits for home improvement, complaint and enforcement processes, and state-specific continuing updates (laws effective 2026, licensing classes) demonstrate the need to track state board rules and local ordinances.

Contractor licensure and unlicensed-activity penalties differ by state; include state-level links and requirements in the final content.

• Fair housing and non-discrimination (HUD/FHEO): Developers doing residential projects must comply with the Fair Housing Act (anti-discrimination) and related HUD guidance; this affects marketing, tenant selection, design for accessibility, and reasonable accommodation policies.
• Construction safety (OSHA): Construction is a high-hazard industry; developers must ensure contractor compliance with OSHA standards (fall protection, trenching/excavation, silica, PPE, crane safety, etc.), maintain site safety programs, and plan for training and inspections. OSHA guidance and National Emphasis Programs are important compliance drivers.
• Zoning, building codes, permits, local land-use entitlements: State and local zoning, building codes (often based on model codes like I-Codes), and permitting processes drive timing and compliance—developers must coordinate entitlements, environmental review (CEQA/NEPA where applicable), traffic/stormwater/utility mitigation, and inspections.
• Tax, securities, and transactional compliance: Developers must coordinate federal and state tax treatment (entity choice, depreciation, like-kind exchange rules where applicable, FIRPTA for foreign sellers), and securities/regulatory compliance if raising capital (SEC private placement rules, state blue-sky laws). Consult tax and securities counsel depending on capital structure.
• Practical compliance program elements: entity and license verification, zoning/permitting checklists, environmental due diligence (Phase I/Phase II ESAs), stormwater/erosion control plans, safety/OSHA programs, HUD/Fair Housing and ADA accessibility checks, contract provisions (indemnity, insurance, lien waivers), documentation and record retention, and regular legal/third-party audits. Recommended next steps to complete the deliverable (blog post + newsletter + state-specific guidance):
• Draft a comprehensive blog post organized by stages of development (pre-acquisition due diligence, entitlement/permitting, construction compliance, lease/sales/operations & ongoing regulatory reporting), with specific checklists in each stage.
• Include a short state-specific section explaining where to find licensing/permit requirements and provide state examples (e.g., CA CSLB, NY DOB/State agencies, TX TDLR/TREC, FL DBPR, IL IDFPR) and links for the most-searched states.
• Provide an actionable compliance checklist for LLC founders/business owners (entity formation, BOI check, licensing, permits, environmental, OSHA, HUD, tax & securities considerations).
• Add a brief "red flags and penalties" section summarizing common enforcement risks, typical fines/penalties and mitigation strategies (stop-work orders, loss of lien rights, civil penalties, criminal liability in fraud cases).
• Recommend retaining local counsel, third-party environmental and safety consultants, and an internal compliance owner, with suggested frequency for audits and document retention periods.