Understanding ADA Exemptions for Commercial Properties: What Owners and Investors Need to Know

The ADA compliance standards affect most commercial properties, but there are exemptions

The Americans with Disabilities Act (ADA) has been a cornerstone of ensuring equal access and opportunities for individuals with disabilities since 1990. For commercial real estate owners and investors, understanding the nuances of ADA compliance—and potential exemptions—is crucial. Let's explore when and how commercial properties might be exempt from certain ADA requirements.

This article is based on information and resources retrieved from the website of ADA Title II and Title III Regulations.

Religious Entities: A Complete Exemption

One of the clearest exemptions under Title III of the ADA applies to religious organizations. Churches, synagogues, mosques, and other religious entities are entirely exempt from ADA requirements, even if they operate public accommodations like schools or daycare centers within their facilities. However, it's important to note that this exemption doesn't extend to secular organizations renting space from religious entities.

Private Clubs: Selective Exemption

Private clubs that are not open to the public and maintain selective membership criteria are generally exempt from Title III of the ADA. However, this exemption can be lost if the club opens its facilities to the general public for events or activities.

Historic Buildings: Preservation vs. Accessibility

While not entirely exempt, historic buildings may have more lenient accessibility requirements to preserve their architectural integrity. Owners of such properties should work closely with preservation experts and ADA consultants to find solutions that balance accessibility with historical preservation.

Existing Facilities: "Readily Achievable" Standard

Older commercial buildings, often referred to as "existing facilities" under the ADA, are not required to undergo extensive modifications unless they're undergoing major renovations. Instead, they must make "readily achievable" accommodations—those that are easily accomplishable without significant difficulty or expense. This standard is relative to the size and resources of the business.

Small Businesses: Undue Hardship Considerations

While there's no blanket exemption based on business size, smaller businesses with limited financial resources may have some flexibility in ADA compliance. The concept of "undue hardship" comes into play here. If a required modification would be prohibitively expensive or disruptive for a small business, it might be considered an undue burden and thus not required.

The "Readily Achievable" Balancing Act

The ADA's "readily achievable" standard allows for a balancing act between accessibility and business realities. What's considered readily achievable for a large corporation may differ significantly from what's expected of a small, independent business. This flexible approach helps ensure that businesses of all sizes can work towards greater accessibility without facing undue hardship.

Conclusion: Proactive Compliance is Key

While there are some exemptions and flexibility within ADA requirements, the trend is clearly towards greater accessibility in all commercial spaces. As a commercial real estate professional, it's crucial to stay informed about ADA requirements and work proactively with property owners to ensure compliance.

If you need more help with buying, owning, leasing or investing in commercial properties, reach out to us at info@cbicommercial.com or 310-943-8530