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New Federal Stimulus Package Passed by Congress

NAR’s Federal Advocacy team has been working closely with Congress and the Administration to ensure the interests of REALTORS®, their families, consumers, and the entire real estate industry are protected in any federal action in response to COVID-19.

On December 21, Congress passed a COVID-relief package, which also included an Omnibus spending bill for FY21, and some tax extenders. Below is a summary of the major provisions of that bill impacting REALTORS®:

COVID-RELATED PROVISIONS

Unemployment Assistance

Extends the maximum number of weeks individuals may receive unemployment benefits, from 39 weeks to 50 weeks.
Extends all unemployment assistance, including the Pandemic Unemployment Assistance (PUA) program and the Pandemic Emergency Unemployment Compensation from December 26, 2020- March 14, 2021.
Limits payment of retroactive PUA benefits to weeks of unemployment after December 1, 2020, and PUA requests end on March 14, 2021.
Eligible individuals may receive PUA benefits until April 5, 2021 as long as the individual has not reached his or her maximum number of weeks of unemployment.
Extends Federal Pandemic Unemployment Compensation (FPUC) at $300 per week for 10 weeks. This provides supplemental unemployment benefits for individuals receiving PUA or regular unemployment compensation for weeks after December 26, 2020 until March 14, 2021.
Extends Pandemic Emergency Unemployment Compensation (PEUC) for a maximum of 24 weeks for eligible individuals.
Phases out the Pandemic Unemployment Assistance (PUA) program and ends the program on April 5, 2021.
Extends interest-free loans to states to keep their unemployment insurance trust funds running.
Reimburses states at 50 percent for the first week of compensable regular unemployment benefits for states with no waiting period.
Provides individuals seeking unemployment benefits with the right to appeal any state determination or redetermination regarding rights to PUA.
Provides a repayment waiver for individuals who received Pandemic Unemployment Assistance (PUA), but who were not entitled to receive PUA, if the PUA payment was the fault of the individual and repayment would be “contrary to equity or good conscience.” State labor agencies must make all individual determinations regarding one’s repayment or waiver status.
Requires individuals to continue to re-certify weekly with the state that the individual’s loss of income is due to a Covid-related reason or issue and the individual is unemployed for a such week.
Adds additional program measures requiring individuals seeking unemployment to provide documentation of earnings and employment to state agencies as a mechanism for states to verify the identity of individuals seeking unemployment benefits.
Imposes “return to work” reporting requirements for states to provide a way for employers to report when someone turns down a job and to notify claimants of the requirement to accept suitable work, unless there is a good cause for refusal.

Paycheck Protection Program

Appropriates $284.45 billion for PPP loans and $20 billion for EIDL Grants.
Certain eligible businesses may receive second-draws of PPP loans of up to $2 million: 300 employees or fewer (or meets alternative SBA size standards) and saw at least a 25% drop in gross receipts in 2020 to a comparable quarter in 2019.
The maximum loan amount a business can get (for both first- and second-draw PPP loans) is $10 million within 90 days.
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.
Extends the deadline for PPP “covered periods” (the 8- or 24-week period from which a borrower has to use their PPP funds) through September 30, 2021.
Expands allowable expenditures of PPP funds to cover purchasing PPE for employees;
501©(6) organizations can access PPP funds if they have 300 employees or fewer, do not receive more than 15% of their receipts from lobbying activities and lobbying activities do not comprise more than 15% of their activities, and the cost of the lobbying activities of the organization did not exceed $1,000,000 during the most recent tax year.
PPP funds cannot be used for lobbying activities of any kind.
Repeals the requirement that borrowers who receive both an EIDL advance grant and a PPP loan deduct the forgiven amount of the EIDL grant from the forgivable amount of their PPP loan.

PPP Tax Forgiveness

Allows for deductibility of business expenses paid for with forgiven PPP loans.

Eviction Moratorium & Rental Assistance

Provides $25b through September 30, 2022 for rental assistance. The monies will be allocated to states through the Department of Treasury.
States allocation will be based on population, no state will receive less than $200 million.
Allows landlords to apply for funds on behalf of tenants.
Includes payments for rent in arrears as well as utilities and “and other expenses related to housing.”
States should prioritize families with incomes below 50% of area median income (but no set % of funds distributed is required).
Rental assistance will not be included in recipient’s income for federal tax purposes.
Extends CDC moratorium through January 31, 2021.

State and Local Funding

Extend by one year (until Dec. 31, 2021) the availability of funds provided to states and localities by the Coronavirus Relief Fund in the CARES Act.

Individual Stimulus Payments

Provides for one-time direct payments of $600 for individuals making up to $75,000 and $1,200 for couples making up to $150,000, as well as an extra $600 per eligible child dependent.

Broadband Expansion

Provides $7 billion for broadband internet access: $285 million for connecting minority communities.
$3.2 Billion for an Emergency Broadband Benefit for Low-Income Americans
$300 Million to Promote Broadband Expansion to Unserved Americans
$65 Million for the development of new, more accurate, and more granular broadband maps

Tax Provisions (related to COVID)

The Employee Retention Tax Credit is modified by:
Increasing the credit rate from 50% to 70% of qualified wages.
The eligibility is expanded by reducing the year-over-year gross receipts decline from 50% to 20%.
Increasing the limit on per-employee creditable wages from $10K per year to $10K per quarter.
Increasing the 100-employee delineation to 500 or fewer employees.
Allowing businesses with PPP loans to qualify.
Extending the credit through June 30, 2021.
Extends payroll tax credits for paid sick and family leave enacted in the Families First Coronavirus Response Act through March 31, 2021.
Tax Extender Provisions

The exclusion from income for mortgage debt forgiveness is extended for five years (through 2025), but the maximum amount is reduced from $2 million to $750,000.
The energy-efficient commercial buildings deduction is extended permanently, its efficiency standards are updated, and the deduction rates are indexed for inflation.
The energy investment tax credit for solar and residential energy-efficient property tax credit is extended for two years (through 2023).
The mortgage insurance premium deduction is extended for one year (through 2021).
The energy efficient homes credit is extended for one year (through 2021).
The nonbusiness energy tax credit (for qualified energy efficiency improvements) is extended for one year (through 2021).

Other Provisions

Provides for the tax deduction of 100% of business meals (up from 50%) for 2021 and 2022.
Corrects a technical problem in depreciating residential rental housing – under certain circumstances, some real estate businesses were forced to depreciate residential rental housing over 40 years instead of 30 if they elected out of a limitation of interest deductibility under the Tax Cuts and Jobs Act. The recovery period is corrected to 30 years in the Act.
The Low-Income Housing Tax Credit is enhanced by the creation of a permanent 4% floor for the portion of the LIHTC that is typically used for rehabilitation of older rental housing and the preservation of subsidized rental developments.
Requires carbon monoxide detectors in all federally-assisted rental housing.
Provides for $49.6 billion for HUD’s budget, which is $561 million above the 2020 enacted level. This bill includes:
$152 million for the Office of Fair Housing and Equal Opportunity and its grant programs, $7 million above the 2020 enacted level:
Funding for HUD’s fair housing grants, activities, and assistance, increased by $2.3 million to $72.5 million.
Funding for HUD’s Office of Fair Housing and Equal Opportunity staffing and expenses increased by $4.8 million to $79.8 million.
$25.8 billion for Tenant-based Rental Assistance, $1.9 billion above the 2020 enacted level; and $13.5 billion for Project-Based Rental Assistance, $895 million above the 2020 enacted level.
$40 million for HUD/VA Supportive Housing for Homeless Veterans (same as 2020).
$43 million for new incremental vouchers for homeless individuals and families.
$200 million for the Choice Neighborhoods Initiative, $25 million above the 2020 enacted level.
$3.5 billion for Community Development Block Grants, $50 million above the 2020 enacted level.
$77.5 million for Housing Counseling, $25 million above the 2020 enacted level.
Reauthorizes the Water Resources Development Act (WRDA), which funds various critical water infrastructure projects in communities nationwide, including water management, flood control, drinking water and resilience. In turn, these projects make communities safer and support economic stability and growth.
Authorizes various renewable energy, energy efficiency and other energy projects, which will make energy more abundant, affordable, provide jobs and reduce greenhouse gas emissions.


Bryan Greene
Vice President, Policy Advocacy
National Association of REALTORS
Washington, DC 20001

New Multi-Use Development Planned in Sanford

from The Sanford Herald

A Sanford businessman has purchased a parcel of land that is intended to be used in bringing a mixed-use real estate development to the area.

George Avent, president of AVENT DSI, Inc., purchased the property, which is located on Kelly Drive between the U.S. 421 bypass interchange and Central Carolina Community College, in a deal that closed on Dec. 15 and said the planned development will feature 250,000 square feet of retail space, including a hotel, and a bowling alley, several eateries; and 30 lots to accommodate 20 affordable single-family homes and 10 townhouses.

The company presently owns approximately 60 acres spread over six parcels in Lee County.

The main attraction that the site holds for the national retail chains such as Home Depot, Target and Harris Teeter and the multinational home builders such as Caruso Homes is its location.

“Sanford is one of the hottest markets in the Greater Triangle for new residential commercial development,” Terrie Tinney, sales manager for Caruso headquartered in Crofton, Maryland, said Tinney heads the Caruso local office in Raleigh.

Avent conceded that rising interest rates and the high costs of infrastructure have slowed this project, but he expects conditions to get better during the duration of the project.

Such conditions caused the company to decline an offer to purchase a favorable Swann Station Road site from Charles C. Tacia III (Chris) and James M. Wood to add to its real estate portfolio. However, Mr. Avent and his representative Phillip Singer hopes to reengage the sellers at a future date when conditions improve if the property remains available.

Important Housing Information from NC REALTORS®

The Advocate
January 6, 2023 Federal Funding Update

President Joe Biden signed H.R.2617, the 2023 Consolidated Appropriations Act, into law on December 29, 2022. The bill is a $1.7 trillion omnibus spending bill that will fund the US federal government through fiscal year 2023. The bill includes funding for domestic and foreign policy priorities. The sweeping spending package includes numerous real estate provisions. The funding, which is supportive of the real estate industry, includes: Federal Housing Administration Funding – Up to $400 billion in FHA commitments to guarantee single-family loans. Fair Housing – $86 million for HUD’s fair housing grants and activities. HOME Investment Partnerships Program – $1.5 billion in funding to provide grants to states and localities for affordable housing initiatives. Housing Supply – $85 million for grants to reward state and local jurisdictions that reform land-use policies and remove barriers to affordable house production and preservation. Rural Housing – $2 billion for USDA’s Rural Housing Service. Flood Insurance – Extends the National Flood Insurance Program through September 30, 2023. Increased flood map funding to $313 million. Broadband – $364 million in broadband grant funding. Infrastructure – $62.9 billion for Federal Highway Administration. To view a list the full list of real estate related funding, click here.

State Issue Update – Elevator Safety Reporting Form for Residential Rental Properties

The NC Department of Insurance recently released an elevator/hoist safety reporting form. The elevator safety reporting requirement is the result of the passage of Weston’s Law in 2022.

Weston’s Law, HB 619, is a bill addressing elevator safety by requiring elevators in rental homes eliminate or reduce the space between elevator doors and landing doors. It was signed into law by Gov. Roy Cooper in 2022 and became effective October 1, 2022.

The bill is named in memory of a young child from Ohio who died because he was trapped between the elevator car and elevator shaft at a rental home in the Outer Banks.

The safety requirements in the Act applies to any elevator in a private residence, cottage or similar accommodation subject to taxation under G.S. 105-164.4F.

To access the reporting form, click here. Once the door baffle, door space guard, door or gate is installed, the landlord will need to provide the Commissioner of Insurance one of the following: A statement signed by a professional elevator installer certifying installation of the door baffle, door space guard, door, or gate meeting the requirements of the law. A receipt for purchase of the door baffle, door space guard, door, or gate meeting the requirements of the law, a signed statement by the landlord stating the date of installation, and photographs depicting the door baffle, door space guard, door, or gate as installed. The reporting form also requires property owner information such as the name, address and contact along with the required documentation listed above. The one page form provides additional details along with contact information.

If you have any questions or comments about the Advocate, please contact Pam Melton, Director of Political & External Communications.

LINKS TO MORE RESOURCES NAR Washington Report NC General Assembly NC REALTORS® Action Center NC Real Estate Commission NAR REALTOR® Party NC Homeowners Alliance
Contributions to RPAC are not deductible for federal or state income tax purposes. Contributions are voluntary and are used for political purposes. Suggested amounts are merely guidelines and you may contribute more or less than the suggested amounts. The National Association of REALTORS® and its state and local associations will not favor or disadvantage any member because of the amount contributed or a decision not to contribute. Your contribution is split between National RPAC and the State PAC in your state. NC RPAC supports the efforts of National RPAC and contributes a portion of its contributions to National RPAC. Contact your State Association or PAC for information about the percentages of your contribution provided to National RPAC and to the State PAC. The National RPAC portion is used to support federal candidates and is charged against your limits under 52 U.S.C. 30116. In-kind contributions/donations are not included for the purposes of the National RPAC State PAC split. NC law requires political committees to report the name, mailing address, job title or profession and name of employer or employee’s specific field for each individual whose contributions aggregate is in excess of $50 in an election cycle. North Carolina law prohibits contributions of cash in excess of $50 per day. Federal law prohibits contributions of cash in excess of $100 per year. Contributions can only be accepted from individuals; in the form of personal checks, credit/debit cards and cash less than $50 per day/$100 per year. Contributions from corporations or business entities cannot be accepted. This solicitation was paid for by NC RPAC. (12/8/2022)

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Fayetteville Forward Bond NEXT STEPS

The City of Fayetteville Bonds that were presented on the November 8 ballot passed with a 67% percentage. Now that the bonds are passed…what’s next?

HOUSING BOND – $12 million

* $9M – yields up to 500 new units
* $1M – yields up to 20 new single family homes, the city will be looking for a development, construction, and financing partners
* $1M – yields up to 40 homeowner rehabs
* $1M – yields up to 40 first time homeowners

PUBLIC INFRASTRUCTURE – $25 million

* $15M – street resurfacing, estimated total of 63 miles of resurfacing
* $8 – sidewalks
* $750k – estimated 3 road miles
* $1.25M – intersection improvements

PUBLIC SAFETY BOND – $60 million

* 911 Dispatch Facility – New facility on new site
* Fire Station #16 – Replacement facility
* Fire Station #9 – Replacement facility
* Fire Station #2 – Replacement facility

Cumberland County Seeking Seats for Boards & Committees

YOU MUST BE A RESIDENT OF CUMBERLAND COUNTY TO APPLY

Links and Resources

Information

The Cumberland County Board of Commissioners recognizes the importance of public participation in good governance and invites County residents to apply to serve on the County’s citizen advisory boards.

  • Some of these boards meet during the day. Before submitting an application, please check the meeting schedule to be sure you are able to attend the meetings. Click on the links above to view a description of the citizen advisory boards, meeting schedules and current vacancies.

Download Application Form

You may submit your downloaded application by fax to 678-7770 or mail to PO Box 1829, Fayetteville, North Carolina 28302-1829.

Sanford City & County Set Hearings for New Shell Building

from Sanford Herald

The Lee County Board of Commissioners and the Sanford City Council will hold public hearings on consecutive rights to hear comments regarding a proposal from each for funding of a new shell building in Central Carolina Enterprise Park.

The commissioners’ hearing is set for Dec. 19 followed by City Council’s on Dec. 20, according to legal notice of the action.

The city and county boards are proposing to lease the shell building from Lee County Growth VI LLC, a limited liability corporation whose registered agent is Sanford businessman Kirk J. Bradley.

Lee County Growth is planning to build a 117,133 square-foot shell building in CCEP at a cost of $10.2 million, the notice says.

“The shell building will be used to entice new businesses to come to Sanford/Lee County or to relocate or expand in Sanford/Lee County, for site visits and events, to market Sanford and Lee County as a whole, until it is sold to an end user,” the notice says.

The agreement calls for the city and county to lease the building for up to two years, the notice said. Monthly payments for the first 12 months are $28,381.88 for a total cost of $340,582.50 for the year.

City of Fayetteville Seeking Applications for Boards/Commissions

City seeks residents to apply for Boards and Commissions

Post Date:12/12/2022 4:34 PM

(Fayetteville, N.C.) – The City of Fayetteville is currently seeking residents to help fill vacancies for the following boards and commissions: 

  • Airport Commission – 5 Vacancies 
  • Community Police Advisory Board – 6 Vacancies 
  • Fair Housing Board – 1 Vacancy 
  • Fayetteville Advisory Committee on Transit (FACT) – 2 Vacancies 
  • Fayetteville City Planning Commission – 4 Vacancies 
  • Fayetteville City Zoning Commission – 1 Vacancy 
  • Fayetteville-Cumberland Human Relations Commission – 2 Vacancies 
  • Historic Resources Commission – 4 Vacancies 
  • Joint City and County Appearance Commission – 1 Vacancy 
  • Joint Fayetteville Cumberland County Senior Citizen Advisory Board – 2 Vacancies 
  • Liner Park, Inc. – 3 Vacancies 
  • Millennial Commission – 4 Vacancies 
  • North Carolina Firefighter’s Relief Fund Board of Trustees – 1 Vacancy 
  • Personnel Review Board – 6 Vacancies 
  • Public Arts Commission – 3 Vacancies 
  • Stormwater Advisory Board – 5 Vacancies 

Boards and commissions are a great way for residents to engage in their community and continue to build a greater Fayetteville. Volunteers who are appointed to the boards and commissions by City Council serve as the link that connects residents to its governing body and serve as advisors that help shape the policies and programs of Fayetteville. 

Applicants can apply now through January 31, 2023 at Fayettevillenc.gov/boards. All qualified applications will be presented to the Appointments Committee in February. City Council will then approve the recommended applicants at a regular meeting in March 2023. 

For more information on how to get involved on boards and commissions please email [email protected] or call Jennifer Ayre, Deputy City Clerk at 910.433.1312.