Despite the economic uncertainty caused by the COVID-19 crisis, investment in Opportunity Zone funds continues to grow and shows signs of gaining momentum. Investment in Opportunity Zone funds listed by Novogradac now tops $10 billion, and is up 50% since early January.
Boston Mayor Martin J. Walsh first limited construction in the City of Boston to essential work on March 17. This pause in non-essential construction has been extended indefinitely by order of the Boston Public Health Commission on April 24. On April 27, Mayor Walsh confirmed that he will not re-open the City on May 4, the date the Commonwealth is scheduled to re-open (Massachusetts Governor Charlie Baker extended his stay-at-home order on April 28 to May 18). In “City of Boston, Massachusetts Extends Construction Moratorium,” partner Paul Shapses discusses how non-essential construction is not presently permitted in Boston, but draft best practice guidelines and an associated contractor certificate identify the way forward for owners and contractors.
With many struggling to make housing payments due to COVID-19, dues owed to multifamily condominium associations are likely to go unpaid—especially if homeowners feel deprived of the use of common areas, such as pools, gyms and playgrounds. In “How Chapter 11 Solved One Multifamily Condo Regime’s Dual Challenges of Mounting Liabilities and Unpaid Dues,” colleagues Patrick J. Potter, David L. Miller and Dania Slim discuss how multifamily condominium regimes with mounting liabilities and unpaid dues during COVID-19 may find answers in bankruptcy to the obstacles posed by individually titled units.
In the wake of government-ordered moratoriums on commercial tenant evictions, how does a California commercial tenant’s security deposit come into play as an available landlord remedy for a lease default? In “California Commercial Tenant Security Deposits in a COVID-19 World,” partner Eric A. Kremer addresses this question by exploring how commercial lease tenant security deposits are subject to provisions under California law that may restrict a landlord’s use. However, such provisions can be waived by tenants.
The COVID-19 pandemic and the resulting economic turmoil have the potential to shake up the U.S. real estate market due to an anticipated influx of real estate investors looking to purchase heavily discounted, distressed assets and an expected increase in real estate foreclosures. In “Examining CFIUS Implications for the Real Estate Market in the Post COVID-19 World,” colleagues Nancy A. Fischer, Matthew R. Rabinowitz and Zachary C. Rozen discuss how non-U.S. real estate lenders and investors need to be aware of the potential that the Committee on Foreign Investment in the United States (CFIUS) may have jurisdiction to review, and potentially disallow certain investments in real estate and mortgage default remedies where foreign persons are involved.
The U.S. Department of Labor (DOL) offered guidance on the unemployment insurance (UI) provisions of the Coronavirus Aid, Relief, and Economic Security Act of 2020 (CARES Act). This builds upon actions previously taken by Congress such as the Families First Coronavirus Response Act (FFCRA) to extend UI coverage to individuals affected by COVID-19. In “Understanding the Unemployment Insurance Provisions in the CARES Act,” colleagues Laura K. Latham and Andrea R. Milano discuss the guidance issued by the The Department of Labor regarding federally funded initiatives to increase individuals’ unemployment insurance entitlement under the CARES Act.
Restaurant companies have been devastated by the COVID-19 pandemic. The National Restaurant Association estimates that the industry has already lost more than 3 million jobs and $25 billion in sales, and there are many more dark days ahead. In “Paycheck Protection Program Leaves Restaurant Industry With Questions,” partner Anna M. Graves discusses the special provisions that the the sweeping $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act includes to assist restaurant companies and their employees.
With an unprecedented number of commercial real estate tenants not paying rent and potentially defaulting under their leases, many landlords and tenants may soon be entering into forbearance agreements that defer payment of rent and other financial obligations. In “Navigating Bankruptcy Exposure for Landlords Arising from Anticipated Lease Terminations During COVID-19,” colleagues Patrick J. Potter, Christian A. Buerger and Dania Slim address how lease terminations may result in fraudulent transfer claims.
The coronavirus pandemic has been credited with improved air and water quality as America shelters in place, reducing its emission and discharge footprint. This unanticipated benefit, however, overlooks the numerous environmental problems that Californians were addressing prior to the advent of the pandemic. In “California’s Stay-at-Home Orders: Implications for Environmental Contractors,” colleagues Eric Moorman and Mark E. Elliott discuss that the exceptions outlined in state and local directives likely encompass the investigatory and remedial activities performed by environmental contractors.
In the wake of the COVID-19 pandemic, the Supreme Court of Texas along with many Texas counties have issued moratoriums on evictions and foreclosures, the applicability of which remains varied and depends on local orders. In “Texas Restricts Evictions Due to COVID-19: Landlord Considerations,” colleagues Hannah Hollingsworth and Adam J. Weaver address that even though evictions are currently on hold, landlords should carefully review their leases and continue to fulfill their obligations thereunder in order to protect their rights once the courts have reopened.
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