New COVID-19 Relief Programs
The following information on new COVID-19 relief programs is courtesy of the Business Council of New York State:
Mandatory FFCRA Leave Ends on December 31, 2020
There is no extension of Families First Coronavirus Response Act (FFCRA) paid sick leave/paid FMLA benefits. Employees are not entitled to additional FFCRA leave after December 31, 2020. As of January 1, 2021, covered private-sector employers may voluntarily provide paid leave that otherwise would have qualified for FFCRA if the FFCRA had not expired, and if they do, they may take the tax credit associated with this leave. The tax credit may only be taken for leave through March 31, 2021.
The Paycheck Protection Program (PPP)
An additional $284 billion is allocated for the PPP. In addition, PPP eligibility is expanded to include all nonprofits, including 501(c)(6) organizations, with some limitations based on employment (under 300) and lobbying activity (less than 15% of expenditures). Businesses that already received a PPP loan will be eligible to get a second one under the new terms. Some of the PPP funds will be set aside for the smallest businesses and community-based lenders and provides $20 billion in Economic Injury Disaster Loans grants for smaller businesses. A summary of the PPP provisions can be found here.
EIDL Grants
The new law reopens the $10,000 Economic Injury Disaster Loans (EIDL) Grant program. Priority for the full amount of the EIDL grant will be given to businesses with less than 300 employees, located in low-income neighborhoods, who have experienced a 30 percent reduction in gross receipts during any 8-week period between March 2, and December 31, 2020 compared to a comparable 8-week period before March 2. If you meet this description and received a grant that is less than $10,000 you can reapply to receive the difference.
Extension of the Employee Retention Tax Credit
The bill extends (through June 30, 2021) and expands the refundable Employee Retention Tax Credit (ERTC), which was established in the CARES Act. The credit rate is increased from 50 percent to 70 percent of qualified wages; expands eligibility for the credit by reducing the required year-over year gross receipts decline from 50 percent to 20 percent and provides a safe harbor allowing employers to use prior quarter gross receipts to determine eligibility; increases the 100-employee delineation for determining the relevant qualified wage base to employers with 500 or fewer employees, and allows businesses with PPP loans to qualify, among other changes.
Health and Dependent Care Flexible Spending Arrangements
The bill allows taxpayers to rollover unused amounts in their health and dependent care flexible spending arrangements from 2020 to 2021 and from 2021 to 2022. This provision also permits employers to allow employees to make a 2021 mid-year prospective change in contribution amounts.
Employer-provided Student Loan Repayment
The CARES Act temporarily allowed employers to provide student loan repayment as a benefit to employees through December 31, 2020. Under this provision, an employer may contribute up to $5,250 annually toward an employee’s student loans, and such payment would be excluded from the employee’s income. The $5,250 cap applies to both the new student loan repayment.
An Extension of Expanded Unemployment Insurance
The bill extends two Coronavirus Aid, Relief, and Economic Security Act (CARES Act) unemployment programs for 11 weeks. Specifically, the bill provides $300 per week for all workers receiving unemployment benefits, through March 14, 2021. The bill also extends the Pandemic Unemployment Assistance (PUA) program, with expanded coverage to the self-employed, gig workers, and others in non-traditional employment, and the Pandemic Emergency Unemployment Compensation (PEUC) program, which provides additional weeks of federally funded unemployment benefits to individuals who exhaust their regular state benefits. Additionally, the bill increases the maximum number of weeks an individual may claim benefits through the combination of regular state unemployment plus the PEUC program, or through the PUA program, to 50 weeks. The bill also provides an extra benefit of $100 per week for certain workers who have both wage and self-employment i ncome but whose base UI benefit calculation does not take their self-employment into account.
Deduction for Business Meals
The bill provides a temporary allowance of full deduction for business meal food and beverage expenses provided by a restaurant that are paid or incurred in 2021 and 2022. Currently, the deduction is available for only 50 percent of such expenses.
Payroll Protection Program Tax Issues Clarified
The federal COVID legislation also includes provisions clarifying the tax treatment of expenses paid for with the proceeds of a forgiven PPP loan. The bill specifies that forgiven Paycheck Protection Program (PPP) loans will not be included in taxable income, and further clarifies that deductions are allowed for expenses paid with proceeds of a forgiven PPP loan, effective as of the date of enactment of the CARES Act and applicable to subsequent PPP loans. This same tax treatment also applies to EIDL grants and certain loans and loan repayment assistance. Earlier IRS guidance had established that expenses funded with PPP proceeds could not be deducted as business expenses. At this point, this treatment of PPP loan proceeds should flow through to state business and personal income tax returns of New York State taxpayers as well.
Registration for NYSAR Education Classes Begins January 2
Registration for all 2021 NYSAR Education classes opens on January 2. All education classes in 2021 will be via the Zoom virtual platform and will be instructed over half days. Prior classes that were 1-day will be 2- half days and 2-day classes will be 4-half days. A reminder that before submitting your registration for any NYSAR designation courses being offered through Zoom, please understand that your tuition is non-refundable and non-transferable. For more, visit nysar.com backslash “education” and click on the course schedule link.
NY real estate market remains strong during the holiday season
Albany, NY – December 22, 2020 – Closed sales continued to rise considerably year-to-year in the Empire State in November, according to the housing report released today by the New York State Association of REALTORS®.
Closed sales escalated 21.1 percent – from 10,961 units in November 2019 to 13,276 in 2020. Pending sales rose as well, increasing from 9,374 houses to 12,405 in year-over-year comparisons – a 32.3 percent jump. Year-to-date, pending sales are up 7.6 percent in 2020 with 138,611 homes in comparison to 119,336 last year at this time.
The median sales price continues to climb in the Empire State, surging 21.9 percent – from $274,900 in November 2019 to $335,000 last month.
Continued record low mortgage rates aided the strong housing market again in November. According to Freddie Mac, the monthly average on a 30-year fixed rate mortgage in November fell once more – to 2.77 percent. This is the twelfth consecutive month the average monthly rate has decreased.
The trend of low housing inventory has persisted into November. The number of homes for sale tumbled 20.5 percent from 60,413 units in November 2019 to 48,054 last month. Months supply of inventory dropped 26.4 percent – from 5.3 months to 3.9 months.
Data and analysis compiled for the New York State Association of REALTORS® by Showing Time Inc.
NAR offers free Fair Housing training in “Fairhaven”
The National Association of REALTORS has launched a new fair housing training platform called Fairhaven. This interactive online simulation helps learners identify, prevent and address discriminatory practices in real estate. Agents will work against the clock to sell homes in the fictional town of Fairhaven while confronting discrimination in the home buying process. The training will provide customized feedback that students can apply to their daily businesses. Completion of the course can take up to two hours, but you can save your work and come back to it. To sign up for this free interactive training, click here.
2021 Mid-Winter Business Meeting to be held virtually
In light of ongoing health and safety concerns stemming from the COVID-19 pandemic and the current Executive Order in NYS, the difficult decision has been made to transition the 2021 Mid-Winter Business Meetings, originally scheduled for February 7-11 at The Desmond Hotel in Albany, to a fully virtual format.
Popular sessions, including the Legal Update and the General Session, and most committee meetings, forums, and updates will be held during the last week of January through the Board of Directors meeting scheduled on February 11. The Installation of Officers and Leadership Conference will also be held virtually. Specific dates and times for all sessions will be announced in the coming weeks.
Please continue to watch your email and NYSAR’s social media channels on Facebook, Twitter, LinkedIn and Instagram for more information.
Save the Date: NYSAR Lobby Day scheduled for April 27, 2021
Save the date of Tuesday, April 27, 2021 for our annual NYSAR Lobby Day at the State Capitol in Albany. Join fellow REALTORS® for a prime opportunity to speak to your lawmakers about important issues impacting REALTORS® and the real estate profession. While we are hopeful this event can take part in-person, NYSAR’s Government Affairs department will be ready to switch to a virtual format if or when that is needed. If you have any questions or need more information about our annual lobby day, email [email protected].
Governor Cuomo Extends State of Emergency to January 1, 2021. Cold Calling is still prohibited.
Governor Cuomo has extended the State of Emergency to January 1, 2021. As a result, licensees are still required to abide by all such guidance, directives and industry phased reopening that are currently in place.
Licensees are still prohibited from making any cold calls. Real estate licensees may not make any unsolicited phone calls to a member of the public during a State of Emergency. General Business Law §399-z(5)(a) states “It shall be unlawful for any telemarketer doing business in this state to knowingly make an unsolicited telemarketing sales call to any person in a county, city, town or village under a declared state of emergency or disaster emergency as described in sections twenty-four or twenty-eight of the executive law.” All other types of marketing such as mailers, billboards, social media, internet etc., are permitted. You may call a FSBO if you have an identifiable purchaser interested in the property. You are prohibited from calling the FSBO to solicit the listing. You may still perform business to business calls so long as you are calling the number provided as the business number.
NAR to host free monthly Code of Ethics Guidance
The National Association of REALTORS® will host monthly trainings to provide guidance on the changes to the Code of Ethics that were approved by the NAR Board of Directors in November, and to provide an opportunity to ask questions of our policy experts. For more information and to see the schedule, click here.
NAR Launches “First-Time Buyer” Streaming Video Series on ROKU
The National Association of Realtors® recently launched its new digital video series on Roku. Titled “First-Time Buyer”, the program focuses on the relationship between REALTORS® and the homebuyer . It provides viewers with a more genuine portrayal of the home buying process. For more, click here.
Strong New York State housing market continues through October
Albany, NY – November 19, 2020 – As the weather gets colder, the New York housing market continues to heat up. Sales remained at higher than normal levels amid continued low inventory across the Empire State, according to the housing report released today by the New York State Association of REALTORS®.
Closed sales in New York State continued to be robust, jumping 16.6 percent from 12,853 units in October 2019 to 14,981 last month. Pending sales skyrocketed to 16,333 homes – a 38.8 percent increase from the 11,766 total in October of last year. Year-to-date, pending sales are also up 6 percent in 2020 with 126,681 homes compared to 119,462 in 2019. New listings were also on the rise, up 9.7 percent for October – from 16,732 units in 2019 to 18,359 in 2020.
Housing inventory remained low through October. The 51,351 units represented a 20.9 percent decrease compared to 64,930 homes last year at the same time. Months supply of inventory dropped 23.2 percent – from 5.6 months to 4.3 months.
The median sales price in the Empire State surged 24.5 percent in October, from $273,000 to $340,000 in year-over-year comparisons. The average sales price also jumped from $362,572 to $441,020 – an increase of 21.6 percent compared to this time last year.
Low mortgage rates helped maintain the strong housing market in October. According to Freddie Mac, the monthly average on a 30-year fixed rate mortgage in October fell to 2.83 percent. This is the eleventh consecutive month the average monthly rate has decreased.
Data and analysis compiled for the New York State Association of REALTORS® by Showing Time Inc.
NAR adds new Standard of Practice to Code of Ethics
The National Association of REALTORS® Board of Directors added a new Standard of Practice 10.5 to Article 10 of the Code of Ethics to expand applicability of the Code of Ethics to all of a REALTOR®’s activities. Under the amendment, REALTORS® must not use harassing speech, hate speech, epithets, or slurs based on race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity, regardless if they are involved in a real estate transaction or not.
You can view a video from NYSAR President Jennifer Stevenson regarding the announcement by clicking here.
NAR 2020 Profile of Home Buyers & Sellers Available
The National Association of REALTORS has published their 2020 Profile of Home Buyers and Sellers. This yearly report analyzes the characteristics of home buyers and homes purchased, home buying and real estate professionals, home buyers before and after COVID-19 and much more! You can download a free highlight document or purchase the entire report. Click here for more information.
