A worker on a site in Wisconsin reviews the clearly posted NAHB coronavirus safety materials.
December 2020
NAHB Continues to Emphasize Job Site Safety
From the very beginning of the COVID-19 pandemic, NAHB has been working to keep America’s home builders and trades partners safe and on the job. That effort is now being redoubled as the country faces a worrying spike in cases, hospitalizations and deaths from the virus. Early efforts focused on the safety of workers on construction sites. NAHB, in cooperation with the Construction Industry Safety Coalition (CISC), adapted CDC guidance into a Coronavirus Preparedness and Response Plan for Construction tailored specifically to home building job sites. That plan was published on NAHB.org on March 25 in English and Spanish. NAHB has been monitoring changes in official guidance and has updated the plan three times, with the most recent version published on Oct. 29. The plan was immediately adopted by many in the home building industry, with HBAs adding local guidance and distributing the materials to members, many of whom posted the information on job sites and used them to train workers and trades partners. The materials provided the basis for the nationwide COVID-19 Jobsite Safety Stand Down held on April 16 and a video toolbox talk. They have also been used by HBAs in their efforts to keep job sites open.
The temporary Executive Order includes the following measures that will take effect on Saturday, December 26th and will continue until Sunday, January 10th, with a possibility of an extension of another week based upon available data. This pause will reduce allowable occupancy from current capacity levels of 40% to 25% in multiple sectors. Notably, this capacity limit will now apply to restaurants. Capacity will be set at 25% of pre-COVID seating capacity and distancing between tables and other requirements will remain in place. Indoor and Outdoor seating capacity must be calculated separately (rather than combining them). Small spaces (such as personal services) and other spaces without clear occupancy standards may use 5 people / 1000 square feet as an alternative to the 25% occupancy . The 25% limit will not apply to manufacturing, laboratories, drive in movie theaters, or construction Employees/staff are exempted from the capacity count Limits at indoor event venues are being reduced to 10 people. Limits at outdoor event venues are being reduced to 25 people. Current limits at private residences remain the same (10 indoors and 25 outdoors) Limits at movie theaters will be reduced to 25% (no more than 50 people per theater) Limits outdoor performance venues will remain 25% (with the max number reduced to 25 from 50). Office spaces will be required to reduce capacity to 25%, but there will continue to be allowances for offices with “critical services”, such as public safety, public health, and other critical services. There is no approval required for these exemptions. K-12 schools continue to be exempted from these capacity limits and will need to follow DESE standards and guidelines.
New Health Restrictions for MA
MA Sector Specific Health Changes
Sector
Current Capacity Limit
New Limit
Construction
None
Drive-In Movie Theaters
Laboratories
Manufacturing
Restaurants
25% of seating capacity
Close Contact Personal Services
25%
Indoor and Outdoor Events
25 indoor / 50 outdoor
10 indoor / 25 outdoor
Theaters and Performance Venues
Movie theaters – 40%, max 50 ppl Indoor perf venues – Closed Outdoor perf venues – 25%, max 50 ppl
Movie theaters – 25%, max 50 ppl Indoor perf venues – Closed Outdoor perf venues – 25%, max 25 ppl
Office Spaces
40%
Places of Worship
Retail Businesses
Driving and Flight Schools
Golf Facilities
Libraries
Operators of Lodgings
Arcades & Other Indoor & Outdoor Recreation Businesses
Fitness Centers and Health Clubs
Museums / Cultural & Historical Facilities / Guided Tours
Sectors Not Otherwise Addressed
IRS Rules on PPP and Expense Deductions Businesses that get their Paycheck Protection Program (PPP) loans forgiven will not qualify for some valuable deductions, according to IRS guidance. "Companies that have “a reasonable expectation that the govern- ment won’t require them to pay back the money can’t deduct the business expenses paid for by the loan.” There is a bipartisan effort in Congress to overturn the IRS’ guidance. Senate Finance Committee Chairman Chuck Grassley (R-Iowa) and House Ways and Means Committee Chairman Richard Neal (D-Mass.) support legislative changes that would allow businesses to deduct expenses paid for with PPP money.
Single-Family Starts Pace Best Since 2007 Led by solid gains in single-family production, overall housing starts increased 4.9% in October to a season- ally adjusted annual rate of 1.53 million units, accord- ing to a report from HUD and the Census Bureau. The October reading of 1.53 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. The pace of single-family starts was the best since the spring of 2007.
The Pros and Cons Of Solar Panels Homes with solar photovoltaic panels (PV) can appeal to some new home buyers because of reduced electric bills and a lessened environmental impact. The decision to proceed with such a major investment, however, raises a question about the return on investment. Home Innovation Research Labs recently completed a study analyzing the cost effectiveness of rooftop solar PV across five different markets: Phoenix; Tampa, Fla; Boston; Kansas City, Mo.; and Seattle. Register Now For Virtual IBSx The 2021 NAHB International Builders’ Show® (IBS) has transitioned to a virtual-only event. The exclusive IBS opportunities that attendees have come to expect from the in-person event will still take place, connecting home building professionals together, online, during the IBSx Virtual Experience (IBSx), Feb. 9-12, 2021. Visit BuildersShow.com to register.
NAHB Focuses on Mental Health NAHB has launched a new effort focused on mental wellbeing in the construction industry with an emphasis on helping association members support healthy work environments and be more proactive in looking at their own health and wellness. Construction workers are particularly susceptible to mental health issues and suicide. More construction workers die by suicide each day than all workplace- related fatalities combined, with a rate of 43.5 suicides per 100,000 workers.
NAHB Prepared to Work With Biden White House
BUILD-PAC Wins 95% of Races The election cycle was expected to be competitive in 2020, so members stepped up their support this year for BUILD-PAC, NAHB’s political action committee dedicated to electing the most qualified pro-housing, pro-business candidates. During the 2019-2020 election cycle, BUILD-PAC contributed to 355 U.S. congressional candidates and played in over 100 competitive races. As of Nov. 23, 95% of the candidates BUILD-PAC supported won their races. NAHB also endorsed 159 candidates for the U.S. Senate and the U.S. House of Representatives who have shown a commitment to policies that promote homeownership and rental housing opportunities for all Americans. NAHB supported the candidates it endorsed with an intensive voter mobilization effort.
After a long and contentious election season, former Vice President Joe Biden will become the 46th president of the United States. It appears that Republicans will retain control of the upper chamber. The tally currently stands at 50 Republican Senate seats to 48 Democratic seats, with two Georgia Senate races headed to a Jan. 5 runoff. And while the majority of the U.S. House of Representatives remains in Democratic hands, House Republicans recaptured some of the suburban seats they lost in 2018. As the 117th Congress is seated in January 2021, and with Democrats regaining control of the White House, NAHB’s near-term priorities remain passing another coronavirus relief package and providing relief from recent highs in lumber prices. Longer-term efforts will focus on ensuring a strong economy and creating a regulatory environment that supports new home production so that housing continues to be the brightest spot in the economic recovery. Read NAHB’s election summary for more detail about the new political environment.
Legal Action Fund Provides Grants NAHB’s Legal Action Committee recently recommended that the Board of Directors fund $56,000 in Legal Action Fund grants to members and HBAs for legal efforts that will have a national impact on the home building industry. Examples include: The Builders Association of Metropolitan Pittsburgh was awarded $10,000 in its challenge of state rules that impose greater limits on the number of people on residen- tial job sites than on commercial sites. An NAHB member from the Kansas City HBA received $11,000 to support their challenge to growth controls imposed by the municipality. An NAHB member from the Rochester HBA in New York received $10,000 for their efforts to defend a legal victory they achieved in a lower court regarding a challenge to local zoning conditions.
A $900 billion economic relief package worked out by congressional negotiators includes key provisions for which NAHB fought. We worked closely with members of Congress to ensure the recovery legislation addresses three major builder concerns: Provides relief for small businesses from burdensome loan forgiveness requirements. Helps struggling renters and landlords with dedicated rental assistance. Tax Relief Congress incorporated a number of tax-related provisions in the year-end deal, including a win for additional tax relief for Paycheck Protection Program (PPP) recipients who subsequently have their loan forgiven. In April, the IRS issued a controversial ruling that businesses were not eligible for tax deductions of business expenses paid for by a forgiven PPP loan. By reversing this decision, a move that NAHB called for, Congress effectively allows business to receive two tax benefits on forgiven PPP loans: (1) the forgiven debt is not treated as taxable income and (2) business expenses paid for with the forgiven debt may be deducted if otherwise allowed. Affected businesses should consult with their tax advisor for further guidance.
New Stimulus Package for Housing and your Business
Low-Income Housing Tax Credit In a major victory for our multifamily members, the legislation includes a major provision that NAHB has been seeking for several years. The bill establishes a permanent minimum 4% credit floor for acquisition and bond-financed projects through the Low-Income Housing Tax Credit. The 4% credit floor will make more types of properties financially feasible and significantly increase unit production. It is estimated that this will allow multifamily developers to finance more than 125,000 additional affordable rental units over the next decade. Employee Retention Tax Credit The legislation expands the Employee Retention Tax Credit (ERTC), which was created in the CARES Act. Of particular note, the changes will allow businesses who received a PPP loan to also claim the ERTC with respect to wages that are not paid for with forgiven PPP loan proceeds. This change is retroactive to March 13, 2020, so businesses who received a PPP loan may wish to consult with their tax advisor to determine if they also qualify for the ERTC. A detailed analysis on all the builder tax benefits in the bill can be found here. Rental Assistance NAHB was successful in working with lawmakers to include a robust rental relief component in the new economic stimulus legislation that would allow landlords to request rental assistance on behalf of their tenants under certain circumstances. The bill includes $25 billion for rental assistance covering rent, utilities and arrears for up to 12 months with a possible three-month extension through an NAHB-supported flexible spending program similar to the Coronavirus Relief Fund called the Emergency Rental Assistance program. Administered through the Treasury Department, funding will go directly to states or cities. This gives the states and localities flexibility in how the funding is delivered and will allow states that already have a rental assistance program to continue with their current structure. In a big win for NAHB, there are guardrails for funding that would require payment to go directly to the property or utility company. Additionally, this legislation extends the Centers for Disease Control and Prevention’s eviction moratorium until Jan. 31, 2021. View more on rental assistance here.
Stimulus Package Info Continued
Paycheck Protection Program The legislation delivers on another builder priority by providing a streamlined, simplified forgiveness process for PPP loans. PPP borrowers who receive $150,000 or less in PPP loan money may submit a one-page forgiveness form online certifying their compliance with the program requirements; loans of $150,000 to $2 million are not required to submit supporting document showing their expenses when applying for forgiveness (but should retain those records for up to four years). Smaller and harder-hit businesses that have taken out a PPP loan will also have a chance to apply for a second PPP loan with a maximum amount of $2 million. View more on PPP provisions here. Other Key Provisions The legislation also includes other important provisions that: Extend all pandemic unemployment benefits expiring at the end of December through March 14, 2021. Extend weekly enhanced federal unemployment payments (paid out on top of regular UI benefits) of $300 per week through March 14, 2021. Provide a direct payment of $600 to most Americans.
Over the past year, NAHB’s “Building the Dream” series, in partnership with The Hill, has explored various factors contributing to the housing affordability crisis. Although the crisis had been a longstanding issue prior to COVID-19, the current pandemic has altered the situation in many cases, including delays in supply chains, labor shortages and increased interest in the suburbs, that have had a further impact on the cost of housing. The Hill’s Editor-at-Large Steve Clemons explored the current conditions of housing affordability with policymakers and industry leaders during the series’ final event. Having access to safe, affordable housing has been a paramount concern during the pandemic for both home owners and renters. While forbearance and rental assistance have provided short-term relief in the immediate wake of COVID-19, additional assistance is still needed to prevent families from slipping into poverty, as well as longer-term solutions to address overall affordability. “There are millions of people in this country who are very vulnerable to any setback in terms of what they can do to stay in a safe, affordable, accessible home,” Sen. Sherrod Brown (D-Ohio), ranking member of the Senate Committee on Banking, Housing and Urban Affairs, shared during the recent event. “We first need to deal with eviction, but we absolutely need a housing policy that will encourage partnerships in building more housing … Housing has gotten so expensive in metropolitan areas but so cheap in many ways in other places still, and we’ve got to find ways to encourage growth in those areas.” NAHB and The Hill kicked off the “Building the Dream” series in Minneapolis in November 2019, and the series continued throughout 2020. Full replays of all of the events in the series, including this most recent segment, are available on NAHB.org.
Building the Dream Series Looks at Housing Affordability Season
All of us at HB&RACC are grateful for your support especially this year. We thank you and wish you all a Happy Holidays, Merry Christmas, and Happy New Year!!