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: MAYOR WALSH EXTENDS ORDER PAUSING NON-ESSENTIAL CONSTRUCTION WORK IN THE CITY OF BOSTON

The following is a press release from the Office of Boston Mayor Martin J. Walsh (March 25, 2020)

BOSTON – Wednesday, March 25, 2020 – Due to the public health emergency caused by the spread of COVID-19 (coronavirus) Mayor Martin J. Walsh today announced he is affirmatively extending the City of Boston’s order to pause non-essential construction for City of Boston permitted sites. Mayor Walsh first announced this order on March 16, 2020, and sites should have been locked down for safety by March 23. Due to the public health emergency in Boston and across the Commonwealth of Massachusetts, this pause is still in effect until further notice.   

“The safety and health of construction workers and all residents of Boston is my first priority, and I am not willing to put that at risk as the virus spreads throughout our communities,” said Mayor Walsh. “Large gatherings such as those at construction sites have been proven to escalate the spread of the virus, and Boston must do everything in its power to flatten the curve, and stop the spread of coronavirus.”   

Mayor Walsh is working with various partners including construction firms and the building trades to determine protocols that would allow these sites to safely re-open in Boston.    This policy only applies to projects permitted by the City of Boston. The City will still allow work that is essential to the safety and well-being of Boston’s residents at this time, particularly work related to the COVID-19 public health crisis.  

In addition to these construction projects, the City will, on a case-by-case basis, review requests for exemptions to the temporary construction moratorium. These may be granted by the Commissioner of Inspectional Services (ISDCommissioner@boston.gov) for building-related work or the Commissioner of Public Works for street-related work. These will be granted if they support increased public health and safety and precautions are taken to mitigate the risk of exposure to COVID-19 among workers.    

Additional details about the order can be found on boston.gov. The guidance order is available online.  

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COVID 19 Update: Baker Issues Guidance Overturning Local Construction Moratoriums

Today, March 25, Governor Baker issued guidance clarifying that the March 23, 2020 Order “Assuring Continued Operation of Essential Services in the Commonwealth, Closing Certain Workplaces, and Prohibiting Gatherings of More than 10 People” supersedes and makes inoperative any order or rule issued by a municipality that will or might in any way impede or interfere with the achievement of the objectives of this order. “Construction Workers who support the construction, operation, inspection and maintenance of construction sites and construction projects” are deemed essential.

Therefore, “the Order provides that all construction projects are to continue operations during the state of emergency, but to do so with allowance for social distancing protocols consistent with guidance provided by the Department of Public Health. Local policies, regulations or directives that provide otherwise are in direct conflict with the Order and should be withdrawn.”  

NAIOP had urged the Administration to issue guidance given the lack of uniformity across the Commonwealth on this issue and we are grateful for this clarity.