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Activity SJa1.2
Objective
Equity + Inclusion in Procurement
Concept
Social Equity + Justice
Activity Type
Impact
Rating System Application
Achieve equity + inclusion in Tenant leasing
Scope
The Owner shall integrate inclusive procurement principles into each stage of the leasing process with an aim to create environments where all Tenants, regardless of their background, feel genuinely valued and have equal opportunities to succeed at the property. While it's not mandatory, Owners are encouraged to incorporate a commercial affordability program to promote economic accessibility, encourage community members as Tenants, and foster a more inclusive and equitable leasing environment.
Requirements
Act to Avoid Harm
- 01.
An Owner adopted Inclusive Leasing Policy that includes:
- a.
Leasing and managing Tenants without discrimination based on race, ethnicity, color, religious beliefs, sex (including pregnancy and related conditions, gender identity, and sexual orientation), national origin, age, disability, genetic information, economic background, or cognitive differences
- b.
Charging equal rates for equal space (comparable space) without discrimination based on race, ethnicity, color, religious beliefs, sex (including pregnancy and related conditions, gender identity, and sexual orientation), national origin, age, disability, genetic information, economic background, or cognitive differences
- c.
Communicating the policy and progress internally to employees and externally to the general public
- a.
Benefit Impacted Parties
- 02.
Conduct tenant outreach activities to identify and engage with a variety of potential Tenants, including those from traditionally under-represented backgrounds, to enhance awareness and accessibility of leasing opportunities without regard to demographic characteristics. Simultaneously, simplify leasing processes by ensuring accessibility of documentation, allowing longer time frames for response, and adopting pre-qualification systems to provide leasing opportunities to the broadest range of Tenants.
Contribute to Solutions
- 03.
Implement a Commercial Affordability Program incorporating at least one of the following criteria:
- a.
Subsidized rental rates for qualifying tenants to lower the financial barrier to entry63
- b.
Financial support for necessary modifications or improvements to the commercial spaces for tenant use64
- c.
Legal and professional assistance to tenants in negotiating lease terms to ensure fairness and understanding66
- d.
Training and educational resources to potential tenants to ensure they are well-equipped to engage in the leasing process67
- a.
Indicators
The performance indicator is the percentage of space leased to diverse Tenants (see Guidance below) on the property. The context indicator is the total number of Leases signed with diverse Tenants.
To calculate the performance indicator:
To calculate the performance indicator:
- Determine the total number of rentable square feet or meters (RSF or RSM) on the property.
- Determine the total number of rentable square feet or meters (RSF or RSM) leased to diverse Tenants on the property.
- Calculate progress as the percentage of space leased to diverse Tenants on the property.
This is expressed mathematically as:
(Total rentable area leased to diverse Tenants / total rentable area) x 100
Scoring
Points assignment
| Points | Percentage Diverse Tenants |
|---|---|
| 1 point | Requirement #1 satisfied |
| 2 points | 5-12% diverse Tenants |
| 3 points | 13-19% diverse Tenants |
| 4 points | 20+% diverse Tenants |
The scoring rubric is based on current averages for diverse-owned employer businesses?, where 20% are owned by minoritized groups; therefore, the objective is for the project to at least match that average.
Additional points assignment
| Points | Additional Requirements |
|---|---|
| +1 point | Requirement #2 satisfied |
| +5 points | Requirement #3 satisfied |
Documentation
- 01.
List of financial, human, and material resources utilized for this activity.
- 02.
Inclusive Leasing Policy copy with evidence of its communication to employees and the public and any updates or revisions to the policy.
- 03.
Lease rate documentation showing equal rates are charged for equal space.
- 04.
Documentation of outreach activities to identify potential diverse Tenants. This could include meeting minutes, emails, or other forms of communication.
- 05.
Documentation of simplified leasing process efforts for each Tenant. This could include copies of lease agreements, application forms, and other leasing documents.
- 06.
Copies of lease agreements with diverse Tenants, showing the amount of space leased to each Tenant.
- 07.
Documentation showing the diversity of Tenants, such as a list of Tenants, along with third-party certifications or self-declarations of Tenant diversity status.
- 08.
Diversity Assurance document showing the percentage of space leased to diverse Tenants. This should be updated regularly to reflect changes in the Tenant mix.
- 09.
Diversity Certification for Tenants that do not meet the small or diverse business characteristics defined above, documentation that shows 51% or more of their employees fall into a diverse category for this property location.
- 10.
Detailed Commercial Affordability Program Report, outlining the selected criterion, its implementation process, and measurable outcomes along with supporting documents like financial reports, program brochures, and evidence of technical assistance provided
Guidance
On scope of Activity
This Activity covers the implementation of inclusive leasing principles by an Owner with the aim of increasing diverse representation among Tenants. It outlines the requirements for avoiding harm, benefitting impacted parties, and contributing to solutions, with specific focus on the adoption of an Inclusive Leasing Policy, integration of inclusive leasing objectives into the leasing process, and targeted outreach efforts for diverse Tenants.
The Activity applies to all types of properties (commercial, residential, industrial, etc.) managed by the Owner and includes both new leases and lease renewals. It does not dictate the specific methods or strategies to be used in achieving the outlined objectives.
The Activity is intended to be applied in the context of leasing processes where the Owner has direct control over Tenant selection and can influence leasing policies and practices. It is also applicable to the management practices of the Owner's internal team. It is not intended for contexts where the Owner has limited control or influence over leasing decisions.
On definition of a diverse Tenant
A diverse Tenant is defined as a business that is 51% or more owned, operated, and managed by an individual or group that is part of a traditionally underrepresented or underserved population. The following are diversity categories:
For US-headquartered businesses:
- Women’s business enterprise (WBE)
- Minoritized business enterprise (MBE)
- Lesbian, gay, bisexual, transgender business enterprise (LGBTBE)
- Minoritized, women, or veteran business enterprise (MWVBE)
- Disabled-owned business (DOBE)
- Veteran-owned business (VOB)
- Disadvantaged Business Enterprise (DBE)
- HUBZone Small Business
- 8(a) Small Business
- Woman-owned small business (WOSB)
- Veteran Owned small business (VOSB)
- Service-disabled veteran-owned business (SDVOB)
SEAM requires that businesses categorized as diverse be certified by a third-party.
For Tenants that do not meet the small or diverse business characteristics defined above, they can be counted in the scoring if they meet the following requirements:
- 51% or more of their employees fall into a diverse category for this property location
- The Tenant meets the equivalent of requirement #1 of this Activity
Referenced Source
- ISO 30415:2021, Human resource management – Diversity and inclusion
- Universal Declaration of Human Rights (1948)