COVID-19 update with Mayor Kokoros: impact on real estate

​The Braintree Chamber of Commerce hosted its second COVID-19 update with Mayor Kokoros, State Senator John Keenan and members of the real estate community on May 11.
 
Meeting by video conference, participants discussed the pandemic’s impact on residential and commercial renters and landlords as well as the broader business community. Incoming Braintree Chamber chair Kim Kroha led the meeting.

Coronavirus update from Town Hall

The mayor reported that 78 Braintree residents have died of Covid-19 to date, and 65% of cases are in nursing homes and long-term-care facilities. The number of new cases is declining, although the numbers are “far higher” than could have been anticipated at the start of the crisis.
 
The mayor expressed his commitment to working closely with business owners to reopen safely after the governor lifts restrictions and issues guidelines.

• Restaurant owners are very concerned about their ability to survive financially if social distancing requirements require them to operate at reduced capacity. The town will investigate using public property for outdoor dining, such as parking lots or French’s Common. Street closures and sidewalk dining are likely unfeasible.
• Hair salons and personal services might be best equipped to reopen because frequent sanitization is already part of their daily business practices.
• The mayor is skeptical that the town’s summer programming, including community events, will be possible due to safety concerns with large gatherings. “If we don’t maintain reduced numbers of folks in public places,” the mayor said, “we’re going to end up with a spike and it will put us in a bad situation come Fall when we need to have school go back in session.”
• Braintree Golf has reopened with distancing rules in place.
• The town is working to procure face masks and hand sanitizers for local businesses.
• The mayor encouraged the state legislature to consider ways to direct insurance companies to pay out business stoppage claims.

 
“We want everyone to get back to work, but we also don’t want everyone to get exposed,” the mayor said. Given that Braintree’s numbers are higher than the state average, the town likely will require stricter measures than those ordered by the state, he added.

News from the Commonwealth

​Senator Keenan provided these updates:

• The state has recorded about 5,000 deaths due to COVID-19, with a substantial portion connected to long-term-care facilities.
• As previously reported, in April the governor signed into law legislation (Chapter 65 of the Acts of 2020) imposing a temporary moratorium on evictions and foreclosures during the COVID-emergency and has a set up a website for renters and homeowners. The protection ends August 18, 2020, or 45 days after the end of the Massachusetts state of emergency, whichever comes first, unless extended by the governor. Landlords cannot initiate evictions or issue adverse credit reports during this period.
• Although landlords had been concerned tenants would mistakenly believe the legislation excuses them from paying rent entirely, early feedback to the senator’s office was that April rent payments were “not that bad.”
• Renters with mid-level income ($40,000–50,000) are struggling the most since they disproportionally draw from the service economy, as opposed to people who live in subsidized housing or are at higher incomes.
• Municipalities can extend when tax payments are due but not forgive.
• The state is considering various legislative options to offer relief to landlords.
• The state is looking at a possible $1 billion budget shortfall for the next fiscal year. With federal relief uncertain, the state is advising municipalities that “the situation is bleak,” Keenan said. A reasonable revenue projection is expected in the next few weeks.

 
The governor’s Reopening Advisory Board is meeting with stakeholders representing more than 50 industries, according to Margaret LaForest of the Mass. Office of Business Development. She encouraged business owners to contact her for assistance navigating federal and state relief options.
 
All courts of the Commonwealth, including Housing Courts and Probate and Family Courts, are closed to the public except for non-emergency hearings, although eFiling is available. Pat McDermott, the Norfolk County Register of Probate, reported that the courts anticipate a sharp increase in eviction hearings after the moratorium ends.

What landlords and tenants are saying

​Kim Kroha of Baker, Braverman & Barbadoro, P.C. conveyed news from her law firm’s commercial real estate practice:

• The state moratorium on evictions and foreclosures applies to residence and “small business premises units,” defined as for-profit or nonprofit organizations with fewer than 150 employees that operate in Massachusetts only. Fewer protections are in place for renters who defaulted prior to March 10.
• The law allows landlords to use last-month rent in lieu of missed payments, if they follow the procedures for notification.
• Her firm’s commercial landlords are getting 25% to 50% of May rents.
• A good strategy is to practice open communication regarding inability to pay. This applies to landlords and their mortgage lenders, and to tenants and their landlords. Lenders strongly encourage landlords to contact them to negotiate a deferred payment plan rather than skip payment without notice. Landlords also are advised to be certain that any communications they send to tenants regarding missed rent payment contains notification of Covid-specific rights.

• Looking ahead, many clients are tweaking force majeure [..1] clauses in leases and reconsidering their space needs in anticipation of extended social distancing.

 
Jay Nuss of Jay Nuss Realty Group represents small and medium business owners in the area.

• His clients are most concerned about reopening with a safe work environment.
• Ensuring safety will require time and resources. Factors include preparing the space, preparing and communicating with employees, reducing touch points, social distancing, and frequent cleaning.
• “How do we make the transition as successful as possible? Expect it to be turbulent, stressful and an uncertain return-to-work process,” Nuss said.

 
Get involved in Braintree’s recovery! Sign up for membership with the Braintree Chamber of Commerce at braintreechamber.com. For the latest news, follow the Braintree Chamber’s Facebook page.