COVID 19 Update: Eviction Legislation Before Senate, Clarity on Construction Moratoriums and Other Issues Affecting CRE

Construction Moratoriums and Guidance

In recent days, there has been a great deal of confusion over construction moratoriums at the state and local level. We hope the following summary, which reflects the latest information, provides some clarity.

State: On Tuesday, March 31, the Baker-Polito Administration updated the construction related guidance in response to the COVID-19 pandemic. The new guidance limits “essential” construction to housing and critical infrastructure activities. Under the revised list, private nonresidential construction is not considered essential (unless it falls within one of the specified exemptions). As of noon, April 1, only housing projects (including mixed use with housing, infrastructure projects and construction related to COVID-19 can proceed. On April 2, the state updated the FAQ page to answer questions on this issue. The state also issued supplemental guidelines to limit COVID-19 exposures on construction sites and additional guidance outlining the enforcement of COVID-19 safety guidelines. It specifically states that “for all private projects the primary enforcement responsibility rests with the city or town.”

Local: Boston, Somerville, Cambridge, and numerous other cities and towns have issued a halt to all construction until further notice. Companies should maintain the crews necessary to make sure sites are “safe and secure.”  On April 5, Mayor Walsh asked that even if a job is one of the few that is allowed to move forward under current guidelines, companies should consider shutting down. In addition, effective April 2, Cambridge issued its own construction guidance

Commercial and Residential Eviction Moratorium Legislation

On Thursday, April 2, the House passed H. 4615, An Act providing for a moratorium on evictions and foreclosures during the COVID-19 Emergency. The bill provides eviction moratoriums for both commercial and residential tenants. The bill is now before the Senate, where a vote is expected on April 9.

Property Tax Update

As part of Chapter 53 of the Acts of 2020, the municipal relief bill signed by Governor Baker on April 3, municipalities are allowed to extend the due date of quarterly taxes to June 1st.  
 
The City of Cambridge announced it is extending the due date for Second Half Real Estate and Property Tax bills until June 1, 2020. In addition, interest and other penalties on late payments made on Excise Tax and water/sewer bills with due dates after March 10, 2020 will be waived if payments are made before June 30, 2020. It is our understanding that this applies to both residential and commercial.
 
The City of Boston has extended the due date for property tax bills in Boston until June 1st to give residents more flexibility during the ongoing public health crisis caused by COVID-19. It is our understanding this only applies to residential.

BPDA Covid-19 Response

The BPDA is postponing all BPDA-hosted public meetings regarding Article 80 development projects and planning studies until further notice. While projects will continue to be reviewed internally by BPDA staff, the public review process for both Article 80 development projects and the BPDA’s planning studies is on hold until public meetings can be resumed. If you are a landlord or tenant of the BPDA’s housing program, please visit the BPDA’s housing page for information and resources. As the BPDA’s response to Covid-19 continues to evolve, please check this page or follow @bostonplans on Twitter for updated guidance.

COVID-19 Massachusetts Relief Fund

On April 6, Governor Charlie Baker and First Lady Lauren Baker announced the launch of the COVID-19 Massachusetts Relief Fund. It is designed to support organizations assisting Massachusetts’ most vulnerable residents, frontline health care workers, and other essential service providers.  Donations are needed and encouraged.
 

COVID-19 Update: FAQ on Construction Shutdown, Update on Federal Programs & Resources for CRE

Shutdown of Non-Essential Construction – FAQ Updated As we shared on Tuesday, the Baker-Polito Administration updated the construction related guidance in response to the COVID-19 pandemic. The new guidance limits “essential” construction to housing and critical infrastructure activities. Under the revised list, private nonresidential construction is not considered essential (unless it falls within one of the specified exemptions). As of noon, April 1, only housing projects (including mixed use with housing), infrastructure, public works projects and construction related to COVID-19 can proceed. The state understands the need to wind down and provide security at an uncompleted project. A minimal crew for security is permissible under the following categories of essential service: 1) Security staff to maintain building access control and physical security measures and 2) Workers to ensure continuity of building functions, including but not limited to security and environmental controls (e.g., HVAC). The state has updated the FAQ page to answer questions on this issue.
Legislative Update – Municipal Permit Tolling Bill Expected to be Passed in House & Senate Today H. 4598, An Act to address challenges faced by municipalities and state authorities resulting from COVID-19, which includes language that addresses the tolling of local permits and is supported by the Mass Municipal Association, NAIOP MA, and the Home Builders & Remodelers Association, is expected to be passed in the House and Senate today and, hopefully, signed by the Governor as soon as this weekend. When it is signed into law we will let you know. 
SJC Postpones Trials in MA Until May 4 Yesterday, the Supreme Judicial Court issued an order postponing all state trials to May 4, at the earliest. All civil and criminal trials which were scheduled to begin on or before May 1 will be delayed “unless the trial is a bench trial in a civil matter and may be conducted otherwise than in-person by agreement of the parties and of the court.” The offices of court clerks, registers, and recorders will continue to work. These duties include scheduling and facilitating hearings, issuing orders, answering questions from legal professionals and the public, and performing other necessary tasks. All business except the filing of pleadings and other documents will be done virtually.
CARES ACT – Resources for Small Businesses  The Paycheck Protection Program (PPP) is a loan program designed to provide a direct incentive for small businesses to keep workers on the payroll. Loans are up to $10M, with a 0.5% interest rate and a 2-year maturity; there are no payments for the first six months.  

Who can apply? Businesses, non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees.

When can I apply? The Paycheck Protection Program will be available beginning on Friday, April 3rd. Applications must be submitted by June 30, 2020.

How do I apply? You can apply for the Paycheck Protection Program through any existing SBA 7(a) lender or through any participating federally insured depository institution, federally insured credit union, or Farm Credit institution. Ask your local lender if it is participating in the program.

What else should I know? The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The program will be available retroactive from February 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020. Read more here.  

The Economic Injury Disaster Loan Advance is a Loan Advance of $10,000 that is available to applicants who have been approved for an Economic Injury Disaster Loan; it does not need to be repaid, so you can think of the Advance as a grant for business expenses.  

Who can apply? If you have applied or intend to apply to the Economic Injury Disaster Loan program, you can also apply for a Loan Advance.

When can I apply? The Loan Advance is available now.

How do I apply? Visit the SBA’s website to submit an application for the Economic Disaster Injury Loan and Loan Advance.

What else should I know? Please note that you should submit an application at the above link, even if you’ve previously submitted an EIDL application prior to the Loan Advance being available. Read more here.  

The SBA is also offering Debt Relief to small businesses. Under this relief, the SBA will pay the principal and interest for six months beginning March 27th, 2020 for qualifying new and current holders of 7(a) loans.

Who can apply? Businesses who already have a covered 7(a) SBA loan or receive a 7(a) SBA loan prior to September 27, 2020.

When can I apply? This relief is applied for covered loans beginning with payments due after March 27, 2020.

How do I apply? Reach out to your SBA lender to discuss how this debt relief applies to your SBA loan.

What else should I know? This debt relief is available only to 7(a) loans and not to loans made under the Paycheck Protection Program, 504 loans, or microloans. Read more here.   Two other Small Business Administration loan programs are also open: Economic Injury Disaster Loans are available through the SBA website; apply here. EIDL loans can be up to $2M, with interest rates of 3.75%, and are for businesses whose revenues were adversely impacted by the coronavirus outbreak. The Express Bridge Loan Program is available to businesses that have an existing business relationship with an SBA-approved lender; speak to your lender about accessing this option while you await a decision on long-term financing. 
Statement from Eversource on Services During COVID-19 Eversource wants to reassure the development community that we are currently well prepared to continue providing safe, reliable energy and essential services while also safeguarding the health and well-being of our employees and the communities we serve. Connecting new customers is considered an essential service, therefore, here at Eversource: Our Customer Service and Engineering teams are working remotely, taking orders and designing and engineering your project. In an effort to maximize safety, joint site meetings are suspended and replaced with conference calls and virtual meetings. Individual site visits will continue where necessary.Construction will continue where permitted by local cities and towns, and Eversource field crews will continue working on projects. However, outage requests are being evaluated on a case by case basis.Outdoor meter installs will continue. Indoor meter installs will be evaluated on a case by case basis.Eversource will continue to require any and all State and Municipal Inspection requirements to move forward with energizing your facility.   For more information Eversource’s response to the COVID-19 pandemic, please visit the Eversource website
Ongoing Blood Product Shortage & Need for Blood Donation Sites As you are aware, the COVID-19 virus has caused the cancellation of blood drives across the Commonwealth. There is an urgent need now for patients with chronic conditions and trauma, as well as ensuring an adequate blood and blood product supply going forward. The Governor has deemed “Blood and plasma donors and the employees of the organizations that operate and manage related activities” as an essential service. Donating is a necessity to supply the hospitals with the blood our neighbors require. Donating blood is safe and people should not hesitate to give. In addition, there is a need for community blood drive sites in the eastern part of the state. Identifying donation sites is vital to meet the demand as we go forward. Your local knowledge, suggestions of sites, and potential partners are crucial to meeting the needs of our neighbors who need blood and blood products. To schedule a new blood drive contact Bill Forsyth at (617) 699-3808 or at email William.Forsyth@redcross.org. Those who are healthy, feeling well and eligible to give blood or platelets, are urged to make an appointment to donate as soon as possible by using the Red Cross Blood Donor App, visiting RedCrossBlood.org or calling 1-800-RED CROSS (1-800-733-2767).

Real Estate Industry Applauds Senate Leadership on Climate Change, Opposes Net-Zero Energy Code

Industry Groups Concerned Provisions Will Chill Economic Development, Increase Housing Costs

BOSTON, MA – NAIOP Massachusetts, The Commercial Real Estate Development Association (NAIOP); the Home Builders & Remodelers Association of Massachusetts (HBRAM); The Associated General Contractors of Massachusetts (AGC MA); and the Massachusetts Association of Realtors (MAR) applaud the Massachusetts Senate for recognizing that climate change is an economic development, public health, and environmental issue that affects every resident in the Commonwealth. 

As the Commonwealth leads the nation in climate mitigation and adaptation, technical and economic realities cannot be ignored. Senate Bill 2477, An Act setting next-generation climate policy includes a proposal to enact an opt-in stretch energy code that defines net-zero building. Achieving a net-zero energy building with today’s technology is not always feasible. As an example, very few net-zero lab properties or residential or office projects over 10 stories have ever been built. The projects that were able to achieve net-zero did so at a cost premium. If implemented, this net-zero code would increase the cost of the construction and maintenance of residential and commercial buildings.  Current rents could not cover the increased costs associated with such requirements.  In addition, the change would dramatically alter project design, in some cases preventing the project from being built at all – threatening the creation of new housing during the existing housing crisis, negatively impacting housing affordability and serving as a financial barrier to homeownership for thousands of young families seeking to purchase their first home.

In addition to increasing costs, it would have the effect of undoing the uniformity of the State Building Code by creating multiple codes – resulting in codes that would vary by community and little to no predictability for developers. This lack of uniformity threatens public safety and security by creating confusion surrounding implementation and enforcement, one of the reasons that the Board of Building Regulations & Standards was charged with implementing a statewide code.

Finally, we are concerned that some communities may adopt the net-zero code as a way to block development.

While we believe that net-zero construction may be possible in the future, we caution the Legislature against codifying timelines that are currently impossible to achieve, and instead encourage the continued investment and development of diverse technologies that will achieve our climate goals.

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NAIOP Contact: Anastasia Nicolaou / 650-380-9440

Home Builders Contact: Benjamin Fierro / 617-429-3053

MAR Contact: Justin Davidson / 781-839-5510

AGC MA Contact: Robert Petrucelli / 781-235-2680, ext. 114

NAIOP Mourns the Loss of Frank Wuest

NAIOP, its leadership, and its members all Wuest_Frankmourn the loss of Frank Wuest, a long time friend, past President, and avid supporter of NAIOP. We will miss his friendship, enthusiasm for life, and his upbeat attitude. To his family and friends, we give our deepest sympathies.

Frank Wuest died on Saturday, August 13, while participating in a fundraising swim in Narragansett Bay, Rhode Island. An avid and skilled swimmer, Frank was 56 years old, a native of Greenwich, CT, graduate of the University of Connecticut and Harvard Business School, and was President of Marcus Partners, having established a successful career in real-estate investment and development.

Passionate about Boston, its people, and its landscape, Frank loved leading the development of vibrant, mixed-income, mixed-use communities. His work included well known developments such as University Park at MIT and Radian in the Leather District of Boston, which he completed while at Forest City Enterprises, where he was for many years president of the Boston office and Head of the Science + Technology Divisions. He served on both the executive committee and board of directors of A Better City as well as the international advisory board of Harvard Business School’s Real Estate Academic Initiative. Mr. Wuest was the Vice Chair of the Advisory Board of the Boston District Council of the Urban Land Institute (ULI) and was a past President and long time member of the Board of Directors of the Massachusetts Chapter of NAIOP, the Commercial Real Estate Development Association. His kindness, intelligence, generosity, and quick smile will be missed greatly.

Frank became a committed long-distance swimmer in 1998, and was a beloved member of the Cambridge Masters Swim Club at Harvard. He was the recipient of many awards including United States Masters Swimming (USMS) Long Distance All Star, USMS Individual All-American, and many USMS Top-10 swims. Earlier this summer, Frank completed a 10,000M swim for time and was the top male finisher in the annual Charles River Swim.

Frank inspired those around him to do their best. A champion of family and time together, he never let a summer go by without a family reunion. He is survived by his wife, Lyn Duncan; two children, Sam Wuest and Allie Wuest and their mother MJ Vigneau; two stepchildren, Micki Duncan and Elias Duncan; his parents Gail and Frank Wuest of Connecticut, two brothers, Kirk of California and Chris of Connecticut, and his sister Avery Horne of Connecticut.

Funeral Mass and Life Celebration

A funeral mass will be held Saturday, August 20 at 11:00 am at St. Paul Church, 29 Mt. Auburn St., Cambridge, MA. An event celebrating Frank’s life will be held immediately following the mass at the Harvard University Murr Center. Because there is no parking at St. Paul Church, parking will be provided at the Harvard Stadium lot next to the Murr Center at 65 North Harvard St, Boston, MA 02163. Shuttle buses will provide transportation between the Murr Center and St. Paul Church before and after the service.

Immediately following the funeral Mass a luncheon reception and celebration will be held at the Harvard University Murr Center Hall of History, adjacent to the parking noted above.

In lieu of flowers, donations can be made to the Frank C. Wuest Memorial Fund, established through Fidelity’s Charitable Gift Fund. Details can be found below.

——————————————————————————————————————————

Frank C. Wuest Memorial Fund
Make checks payable to:
The Fidelity Charitable Gift Fund
Memo:  The Frank C. Wuest Memorial Fund, Giving Acco
unt #1098999

Checks need to be able to be drawn on a US Bank and should be in US Dollars.
We cannot accept cash like instruments (bank checks, cashier checks, money orders, postal orders, etc.)

Regular Mail Address:                                       Overnight Delivery Address:
Fidelity Charitable Gift Fund                        Fidelity Charitable Gift Fund
Mail zone:  KC1D                                               Mail zone KC1D-FCS
P.O. Box 770001                                                100 Crosby Parkway
Cincinnati, OH 45277-0053                           Covington, KY 41015-9325

Questions?
If you have any questions about the donation process, please call Fidelity Charitable Gift Fund at 1-800-952-4438 or visit www.FidelityCharitable.org. Please reference “The Frank C. Wuest Memorial Fund”, Giving Account #1098999.

The Fidelity Charitable Gift Fund is a 501c-3 tax-exempt organization. Its federal Tax Identification Number is 110303001.

6 Steps to Building a Career in Commercial Real Estate

100_0642On February 24th, NAIOP Massachusetts hosted a career panel where dynamic young professionals from the Developing Leaders program offered helpful advice on how to jumpstart or further a career in Commercial Real Estate. Speakers included Molly Davis, Associate Director at Newmark Grubb Knight Frank; Katie Grimes, Business Development Associate at Red Thread; Chris LaFrance, Associate Director of Acquisitions at Intercontinental Real Estate Corp.; Tucker McCrabb, Research Analyst at AEW Capital Management; Jennifer Price, Assistant Vice President at Colliers International; and Sarah Weatherbee Walker, Senior Director at Keller Augusta Partners, who moderated the program.

100_0652At the event, Keller Augusta Partners shared these tips below for college students who are interested in a career in Commercial Real Estate.

The Commercial Real Estate industry is very competitive. Successful candidates must be able to demonstrate experience and interest in the CRE field early and often. Here are some helpful ways to break into the industry:

  1. Coursework
    • Be sure to do exceptionally well in real estate classes (impress your professors!) and maintain high GPA
    • Highlight significant projects or case work from your courses on your resume
  1. Internships
    • Full time summer positions
    • Part-time /semester opportunities
    • Contract work
  1. Industry Professional Organizations
    • Seek out a student membership or student rate for attending events
    • Join committees to make more meaningful connections, don’t just attend events
  1. Leadership Roles within On-Campus Organizations
    • The event planning process is a great reason to reach out to industry professionals
    • This becomes an excellent resume talking point
    • If your school doesn’t have a group, create one!
  1. Networking
    • Utilize your Alumni, Personal & Professional network to build up your industry contacts
    • Be specific about your job search & career objectives during networking/outreach conversations
    • People want to help but being vague puts more work on them
    • Create your 2-minute elevator speech and practice it!
  1. Skills
    • Academic performance (GPA/Test Scores) is highly regarded at top firms
    • Strong emphasis on quantitative skills across many positions

100_0659Below are some additional resources available from NAIOP Massachusetts.

Student Association Membership (SAM) program
Open to any full-time student who is not otherwise employed in the industrial, office, multifamily, mixed-use or related commercial real estate industry. Must present a valid school ID and current full-time schedule.

Benefits include: free admission to networking events and educational programs, opportunities to meet industry leaders and decision makers, access to NAIOP’s national database, special Student Association Membership (SAM) Career Dinners and informational interviews.

University Membership
Available to colleges and universities offering undergraduate programs in real estate and includes up to 25 student memberships.

NAIOP Massachusetts Job Board
Includes full-time jobs and internships. Open to all, NAIOP Members can post jobs for free.

100_0657View all photos from the event.

Speaking of Real Estate

NAIOP Massachusetts is kicking off a video series we will be calling “Speaking of Real Estate”.

The idea behind this effort is to interview leaders in the commercial real estate industry, including developers, owners, investors, as well as some of the heads of the major professional service firms that support our business.

We are starting with a very candid discussion between Tom Alperin, President, National Development and Marc Margulies, Founder and Principal, Margulies Perruzzi Architects. They cover a range of topics that include affordable housing, new design considerations, shared economy, and looking to the future for the industry.

We plan on bringing you the opportunity to hear from individuals that are in the forefront of creating our new urban and suburban “live, work and play” environments. Who are some CRE leaders you would like to hear from in this series? Let us know in the comments section below.

Event Recap: Leadership Lunch + Learn at 101 Seaport

The following blog post was written by Chloe Louise Bouscaren, Marketing and Business Development at CBT Architects.

“An Inventive Setting to Spark Inventive Thinking”

IMG_20151111_122627151On Wednesday, Nov 9th NAIOP hosted a Members-Only Leadership Luncheon at 101 Seaport Boulevard, the new home for PricewaterhouseCoopers, a multinational professional services network. PwC relocated 3000 employees from 125 High Street to Boston’s Seaport District. Shawn Hurley, the Executive Vice President and Regional Manager of SKANSKA USA Commercial Development hosted NAIOP on the building’s 7th floor, the only space that has yet to be leased. Shawn was joined by Charley Leatherbee, VP of Development; Levi Reilly, Director of Development; and Patrick Sousa, Manager of Development, who all played important roles in the success of this high-profile project.

IMG_20151111_121118778The newly constructed 17-story, 440,000 RSF, LEED Platinum state-of-the-art office building was developed by SKANKSA USA Commercial Development Team in Boston. Highlights included a chilled beam mechanical system, triple glazing curtain wall, 300 underground parking spaces, world class retail by WS Development, expansive views of the harbor and Seaport, conference and training centers, and virtually column free floorplates. 82% of the building is occupied by PwC, tenants Red Thread and Skanska will be joining them soon. NKGF’s Dave Martel and Bill Anderson are responsible for the leasing and deal negotiation.IMG_20151111_120951643_TOP

Located on what will be the new Seaport Square Green, 101 Seaport connects directly to Fan Pier Park, creating a continuous public space that reaches Boston Harbor and connects to the Harborwalk Grand civic lawn to support active recreation and public events.CBT2

SKANSKA is also currently working a neighboring 17-story office tower, 121 Seaport, as well as Watermark Seaport, a 300-unit residential complex both on neighboring parcels.CTjJnD2VAAAiuyx.jpg large

For those who have yet to hear Shawn’s presentations on SKANKSA’s developments in the Seaport and beyond, his confidence and presence is unparalleled. Shawn has an innate way of making an audience feel comfortable and that day, we all felt we were part of something big. SKANSKA is clearly making development history in Boston and Shawn and his group are leading that charge the titans of the real estate industry. Hats off gents.

Quick Project Stats
Project Cost: $290M
Project Duration: 26 months
PwC Employees: 3000 (20% more people in 12% less space)
Designer / Design Firm: Jonathan McGuiness, Jacobs Engineering Group

NAIOP’s on-going Leadership Lunch and Learn series is open only to Members and offers unparalleled access to top local real estate leaders. Attendees get an inside look at the area’s most active CRE companies and hear about their latest developments, recent activity, upcoming projects, and more. Not yet a NAIOP Member? Join today!