Archives for March 2021

Create a Personal Safety Plan That Also Avoids Legal Liability

March 8, 2021 by CARNM

One-third of real estate professionals have felt unsafe during an open house or showing, according to the 2020 National Association of REALTORS® Member Safety Report. Safety remains a priority among real estate professionals and their brokerages.

Having a personal safety plan can help. This plan can address common scenarios that you may risk while working in real estate, such as when meeting new clients or showing properties.

However, be sure to factor in legal considerations when creating a safety plan, such as those that help you avoid potential fair housing pitfalls and that reflect any state and local regulations. The National Association of REALTORS®’ latest “Window to the Law: Safety Best Practices for Real Estate Professionals” video from its legal team highlights tips on creating a safety plan.

In the video, Deanne Rymarowicz, associate counsel at NAR, cites one example of using self-defense sprays, such as mace or pepper spray, and being aware of the regulations, which can vary widely from state to state. For example, Hawaii requires a license for pepper spray and limits the container size to a half ounce. Wisconsin limits the active ingredient in pepper spray to a 10% concentration and a two-ounce container.

Also, beware of potential legal issues that could arise from using technology tools and smartphone apps to confirm a stranger’s identity or to conduct background checks. “An instant background check cannot be used for any discriminatory purpose or to make decisions about credit, tenant screening, or for any other purpose that would require compliance with the Fair Credit Reporting Act,” Rymarowicz notes in the video.

Be sure to consistently apply safety protocols in your client interactions to avoid legal liability.

Watch the Window to the Law video for more tips.

Learn more about the REALTOR® Safety Program and access resources at nar.realtor/safety.

Source: “Create a Personal Safety Plan That Also Avoids Legal Liability“

Commercial Construction Starts Hit Highest Level In Three Years

March 8, 2021 by CARNM

Last month 14 projects entered planning with a value of $100 million or more.

FHFA Extends Mortgage Forbearance for Multifamily Owners

March 5, 2021 by CARNM

The Federal Housing Finance Agency announced Thursday that it will grant more time in forbearance to qualifying multifamily property owners. The program was set to expire at the end of the month but has now been extended until June 30.

Property owners with Fannie Mae and Freddie Mac–backed multifamily mortgages can enter new or modified forbearance if they are experiencing financial hardship due to the COVID-19 pandemic. “COVID-19 continues to financially impact Americans across the country, thereby hindering many tenants’ ability to pay their rent,” says FHFA Director Mark Calabria. “To help tenants in financial distress and property owners, FHFA is extending the multifamily COVID-19 forbearance and tenant protections.”

Property owners who take part in the relief program are required to inform tenants in writing about tenant protections available during their forbearance as well as during the repayment period. They also must agree not to evict tenants for not paying rent while the property is in forbearance.

Fannie Mae and Freddie Mac outline tenant protections to their multifamily properties on a lookup tool at their websites. The property lookup tools are to make it easier for tenants to find out if their multifamily property has a Fannie or Freddie-backed mortgage. The lookup tools can be accessed at Fannie Mae’s website and Freddie Mac’s website.

The Consumer Financial Protection Bureau also has a website devoted to helping homeowners and renters find aid during the pandemic.

Source: “FHFA Extends Mortgage Forbearance for Multifamily Owners“

CRE Gets Boost as Economy Adds 379,000 Jobs in February

March 5, 2021 by CARNM

Most of the job gains were in the leisure and hospitality sectors.

The US economy showed its clearest sign yet of recovery with February’s unemployment report released this morning by the Bureau of Labor Statistics: Some 379,000 jobs were added to US payrolls last month, led by the leisure and hospitality sectors.

To be sure, the jobs market is nowhere near its pre-pandemic health. First-time unemployment claims totaled 745,000 last week, up from 736,000 the week before, while both the unemployment rate, at 6.2%, and the number of unemployed persons, at 10 million, changed little in February. Although both measures are much lower than their April 2020 highs, they remain well above their pre-pandemic levels in February 2020 (3.5% and 5.7 million, respectively).

All that said, the gains in February were very telling, particularly for the commercial real estate industry. There were 355,000 jobs added in the leisure and hospitality sector; in the bar and restaurant sub-sector alone 286,000 positions were added. This is a strong signal of the service sector reopening, according to Fannie Mae’s Chief Economist Doug Duncan.

The new positions at bars and restaurants is in part a reflection of relaxed restrictions on dining that took effect last month, particularly in California and New York, according to Marcus & Millichap Research Services, but they also signal the beginning of a more robust stage of employment growth after a pause in the recovery late last year. “The positive momentum, aided by ongoing stimulus measures, speaks to the underlying demand and resurging confidence in the retail and hospitality sectors that were most impacted by the pandemic,” it said.

At first glance, the industry most likely to benefit from these new jobs is the multifamily sector, particularly the workforce and Class B sectors. It is here that service sector job losses have had an impact, albeit not a large enough one to seriously affect performance.

It should also not go unnoticed that increased employment in the lodging and retail sectors point to a growing recovery in these hard-hit sectors.

Employment rose in accommodation (+36,000) and in amusements, gambling, and recreation (+33,000). Retail trade added 41,000 jobs in February. The largest gains occurring in general merchandise stores (+14,000), health and personal care stores (+12,000), and food and beverage stores (+10,000). These gains were partially offset by a loss in clothing and clothing accessories stores (-20,000). Following steep job losses in March and April of 2020 (-2.4 million jobs over the 2 months combined), retail trade has added 2 million jobs from May through February.

The picture is more muted for the office sector: within professional and business services, temporary help services added 53,000 jobs in February but is down by 175,000 from a year ago.

Employment in health care and social assistance increased by 46,000 in February. Health care employment was little changed over the month (+20,000), following a large decline in the prior month (-85,000). In February, job gains in ambulatory health care services (+29,000) were partially offset by losses in nursing care facilities (-12,000). Employment in social assistance rose by 26,000, mostly in individual and family services (+18,000). Employment in health care and social assistance is down by 909,000 over the year.

Sectors that saw declines included local government education (-37,000) and state government education (-32,000). The BLS notes that pandemic-related employment declines in 2020 distorted the normal seasonal buildup and layoff patterns in the education sector, making it more challenging to discern the current employment trends in these industries.

Also employment in construction fell by 61,000 in February, largely reflecting declines in nonresidential specialty trade contractors (-37,000) and heavy and civil engineering construction (-21,000). Severe winter weather across much of the country may have held down employment in construction, BLS says, noting that employment in the industry is 308,000 below its level a year earlier.

Source: “CRE Gets Boost as Economy Adds 379,000 Jobs in February”