COVID 19 Update: Governor Signs Bill Tolling Local Permits and Other Issues Affecting CRE

Governor Signs Bill Tolling Municipal Permits

Today, Governor Baker signed H.4598, An Act to address challenges faced by municipalities and state authorities resulting from COVID-19. This bill addresses many challenges faced by local governments throughout the Commonwealth during this time and 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. The language, found in Section 17 provides necessary relief to cities and towns that, due to disruptions caused by the state of emergency, are unable to timely process and hear permitting applications. At the same time, these changes balance the needs of residents and developers by ensuring that their current permits are no impaired by the emergency declaration. 

House Passes Commercial and Residential Eviction Moratorium

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 enacts eviction moratoriums for both commercial and residential tenants. The bill now moves to the Senate.

Small Business Administration Clarifies Paycheck Protection Program

Late yesterday, the Small Business Administration (SBA) issued an interim final rule that provides additional guidelines and requirements for its Paycheck Protection Program (PPP) aiding small businesses affected by the COVID-19 crisis. The interim rule provides increased clarity on several key issues. It specifies underwriting expectations and allows lenders to rely on borrower documentation for loan forgiveness without verification – if the borrower attests that it has accurately verified the payments for eligible costs. This provides increased protection for lenders should borrowers misrepresent information. Additionally, the guidance states that after seven weeks, lenders may request that SBA purchase the expected forgiveness amount of PPP loans. It also allows banks that are already certified as 7(a) lenders to begin approving loan applications with SBA delegated authority starting today, April 3.

Cambridge Issues Construction Guidance for Still-Active Sites

On the evening of April 2, the City of Cambridge released guidance for currently active construction sites. The guidance does not change the types of construction activities covered by the existing moratorium, issued on March 18. All contractors undertaking construction projects that have received approval from the Inspectional Services Department or the Department of Public Works to work during the Moratorium shall follow the City’s COVID-19 Construction Guidelines, and are strongly urged to review the Commonwealth’s COVID-19 Guidelines and Procedures for all Construction Sites and Workers. Inspectional Services or Public Works Departments may shut down job sites that are found to be in violation of the City’s COVID-19 Construction Guidelines.Additionally, larger construction sites may require more elaborate reports and worker training plans.

COVID 19 Update: Permit Tolling Legislation Filed Today & FAQ on Essential Services

Permit Tolling Bill Filed Today
Today Governor Baker filed HD4974, An Act to Further Address Challenges Faced by Municipalities, School Districts, and State Authorities Resulting from COVID-19. While the bill addresses several topics, Section 9 of the bill addresses the tolling of permits. The language included in the bill is the result of a collaborative effort and many hours of work during the past few days between NAIOP Massachusetts, the Mass Municipal Association and the Home Builders & Remodelers Association of MA.   Specifically, the language provides the following:

– No permit is automatically granted, approved, or denied because a local permitting authority does not act within a time period required by law.
– Any permit that is currently valid will not lapse or expire during the state of emergency, and suspends any time limitation on such permits during the emergency.
– Allows applications for permits to be filed electronically, so as to eliminate the need for in-person filing.
– Suspends any requirement that a hearing on a permit application be held within a certain period of time until 45 days after the end of the state of emergency.  

These changes will provide necessary relief to cities and towns that, due to disruptions caused by the state of emergency, are unable to timely process and hear permitting applications. At the same time, these changes balance the needs of residents and developers by ensuring that their current permits are not impaired by the emergency. We are pushing for quick passage of this bill and we are incredibly grateful to a phenomenal team of NAIOP members who worked tirelessly to perfect this language and reach a compromise. We will keep you posted as this bill advances. In addition, we are pursuing numerous other forms of legislative and regulatory relief. Please contact us if you have any questions or ideas.  

Non-Essential vs. Essential Businesses: FAQ Now Available  
Yesterday Governor Charlie Baker issued an emergency order requiring all businesses and organizations that do not provide “COVID-19 Essential Services” to close their physical workplaces and facilities to workers, customers and the public as of Tuesday, March 24th at noon until Tuesday, April 7th at noon. These businesses are encouraged to continue operations remotely.  NAIOP has been inundated with requests from professionals who are not specifically listed. The Administration has launched an FAQ page to address some of the most commonly asked questions.  

In addition, if the function of your business is not listed as essential, but you believe that it is essential or it is an entity providing essential services or functions, you may request designation as an essential business. Requests by businesses to be designated an essential function should only be made if they are NOT covered by the guidance. To request designation as an essential business, please click here  Any questions can be directed to covid19.biz@mass.gov  

Construction Moratoriums Continue & Conflict with Executive Order?
Last night, Somerville ordered all construction projects to cease general operations, establish services necessary for in-use buildings to function, and make their sites safe to the general public by Friday, March 27.  Somerville now joins Boston, Cambridge, and numerous other cities and towns that have put construction moratoriums in place.

We have received numerous requests for clarification on how the Essential Services list, which lists as essential:  “Construction Workers who support the construction, operation, inspection, and maintenance of construction sites and construction projects (including housing construction)” and “Workers to ensure continuity of building functions, including local and state inspectors and administrative support of inspection services who are responsible for the inspection of elevators, escalators, lifts, buildings, plumbing and gas fitting, electrical work, and other safety related professional work”should be interpreted in communities where there is a construction moratorium.   

As of March 23, Mayor Walsh and the BPDA made it clear that they do not plan to lift the moratorium. However, given the sheer volume of questions on this issue and the confusion that exists, we have reached out to the Baker-Polito Administration for guidance on this issue.

E-Notary Legislation Filed
Massachusetts is one of only a handful of states that does not allow for e-notarization. On Friday, SD2882, An Act Relative to Remote Notarization During COVID-19 State of Emergency was filed to allow for e-notarization until 3 days after the emergency declaration is lifted. The Real Estate Bar Association has been the lead on this issue, but NAIOP is supportive of the legislation and will be advocating for its passage.